US mid-caps offer big potential
The case for mid cap
Mid cap historically outperforms large cap and small cap
Source: Morningstar Research Inc., December 31, 1994 to December 31, 2024. Index performance based on monthly total returns in USD. Chart is provided for illustrative purposes. Past performance is not an indicator or a guarantee of future performance.
This chart is for illustrative purposes only and does not reflect the performance of any Franklin Templeton fund. Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
Investment process
The multi-factor index uses a disciplined, rules-based methodology focusing on key performance factors: Quality, Value, Momentum and Low Volatility.
| Quality | Value | Momentum | Low Volatility | |
|---|---|---|---|---|
| Factor Role | May help drive stock performance & reduce portfolio volatility | May help capture opportunities in undervalued companies | May help avoid value traps | May help manage downside risk in uneven markets |
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Rules-based index construction process
Anchoring the portfolio around four diversifying factors helps provide exposure to high-quality companies at a reasonable price, while avoiding value traps.
