ASX Mid Cap 50 stocks are mid-size companies that have outgrown the small-cap space and not large enough to be included in the larger market index like the ASX 50.
ASX Mid Cap 50 Stock List
Companies in the ASX mid cap index are the smallest 50 companies from the ASX 100.
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Best Mid Cap Stocks For The Long Term
These are some of the typical characteristics of a mid cap stock we look for in which we think there would be more potential for it to grow into a large cap stock eventually.
- Typical market cap range of between $5bil to $10
- Well known companies but not yet synonymous with the sector it operates in
- There is a strong potential in the local market to increase their market penetration, either operating in a market that is growing or taking market share from existing competitors
Examples of mid cap companies include Challenger, A2 Milk Company and Link Administration. A key ingredient of owning stocks of this type requires patience. The companies are usually growing above the market rate of growth, but maximizing their potential requires compound growth, which takes time.
Just like a small cap does not turn into a mid cap overnight, these middle-sized companies’ ultimate goal is to become a large cap stock. Still, we like to play in this space because mid cap companies have overcome several risks associated with investing in small cap stocks with a proven product, business model, and addressable market on a risk-adjusted basis.
Diversified Sector Exposure
Interestingly, the largest sector in the index is the technology sector. Financial and mining companies only make up 20% of the index. This creates an important point of differentiation for the ASX mid cap index to other major ASX large cap indices. The top 300 companies index commonly see financials and mining sectors make up a disproportionate share of the market.
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Investing Mid Caps through ASX Mid Cap ETF (IJH ASX)
The ASX ETF list shows one ETF, Blackrock managed iShares S&P Mid Cap ETF (ASX IJH) tracks the mid cap stock’s performance.
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But if you look deeper, you will see that the ETF aims to replicate the S&P 400 Mid Cap index, but the underlying index is an index of 400 mid cap stocks listed in the US market. The ETF does not include any Australian stocks!
ASX IJH Dividend History
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The ETF pays dividends quarterly, with the typical month of payment in July, October, January and April. As ASX IJH invests in stocks in the US, the dividends do not include any franking credits.