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Invest in the S&P 400

Investors seeking growth and stability may be interested in this index’s mid-cap stocks.

The mid-cap stocks it tracks hold the potential for profit — but the opportunity for growth depends largely on where the company is in its life cycle.

What is the S&P 400?

The S&P MidCap 400 is an index composed of 400 US mid-cap stocks — stocks with a valuation between $200 million and $5 billion. It’s a free-float cap-weighted index maintained by S&P Dow Jones Indexes, the same company responsible for the S&P 500 and the Dow Jones Industrial Average.

Since the S&P 400 is a cap-weighted index. The stocks with the highest market cap have the most impact on its performance. (“Market cap” is short for market capitalization and refers to the value of a company’s unsold stocks. It’s calculated by multiplying the number of outstanding stocks by the current market price of a single stock.)

How to invest in the S&P 400

There are 2 ways to invest in the S&P 400: stocks and ETFs. If you’re interested in a targeted investment supporting individual companies, consider purchasing stocks. If you’d prefer more comprehensive coverage of the index, look into ETFs, which let you buy stocks in funds that track multiple companies.

To purchase stocks or ETFs, you’ll need a brokerage account. Here’s a look at the investment process:

  1. Select an investment platform. If you don’t already hold an account, compare trading platforms to find the brokerage that best meets your needs.
  2. Open and fund your account. Web-based brokerage applications can be completed online. You’ll be asked to fund your account before you can start trading.
  3. Purchase your securities. Use in-platform or third-party research tools to select the stocks or ETFs you’d like to purchase.
  4. Monitor your investments. Log in to your brokerage account to track the performance of your investments.

What stocks are in the S&P 400?

Popular stocks in the S&P 400 include:

  • American Eagle Outfitters, Inc. (NYSE: AEO)
  • Domino’s Pizza, Inc. (NYSE: DPZ)
  • Fidelity National Financial Inc. (NYSE: FNF)
  • Foot Locker, Inc. (NYSE: FL)
  • The Goodyear Tire & Rubber Company (NasdaqGS: GT)
  • Grubhub Inc. (NYSE: GRUB)
  • Interactive Brokers (NasdaqGS: IBKR)
  • Mattel Inc. (NasdaqGS: MAT)
  • The New York Times Company (NYSE: NYT)
  • SolarEdge Technologies, Inc. (NasdaqGS: SEDG)
  • Steel Dynamics Inc. (NasdaqGS: STLD)
  • Tripadvisor Inc. (NasdaqGS: TRIP)
  • Wyndham Hotels and Resorts Inc. (NYSE: WH)
  • Yelp Inc. (NYSE: YELP)

What ETFs track the S&P 400?

Major funds that track the S&P 400 include:

  • Invesco S&P MidCap Momentum ETF (NYSEArca: XMMO)
  • Invesco S&P MidCap Quality ETF (NYSEArca: XMHQ)
  • iShares Core S&P Mid-Cap ETF (NYSEArca: IJH)
  • SPDR S&P MidCap 400 ETF (NYSEArca: MDY)
  • Vanguard S&P Mid-Cap 400 ETF (NYSEArca: IVOO)

Compare S&P 400 trading platforms

Compare brokerage accounts to find the right fit. Once you open an account, you can begin investing in stocks and ETFs.

Name Product Available asset types Stock Fee Option Fee Account Fee ETF Transaction Cost Feature Table description
Wealthsimple Trade
Stocks, ETFs
$0
N/A
$0
Free
Deposit and trade $100 and get a $50 bonus.
Pay no commissions when you trade Canadian stocks and ETFs with Wealthsimple Trade.
CIBC Investor's Edge
Stocks, Bonds, Options, Mutual Funds, ETFs
$4.95 - $6.95
$4.95 - $6.95 (+$1.25 per contract)
$0 if conditions met, otherwise $100/year
$6.95
$4.95 - $6.95 is applicable for online stock, ETF and option trades only. Pay $4.95 when you qualify as an Active Trader (trade 150+ times per quarter).
An intuitive and easy-to-use platform with access to a variety of tools that help you make smart decisions and trade with confidence.
Interactive Brokers
Stocks, Bonds, Options, ETFs, Currencies, Futures
Min. $1.00, Max. 0.5% of trade value
$1.50 min. per order
$0 (if monthly commissions are greater than or equal to US$10.00)
Min. $1.00, Max. 0.5% of trade value
Extensive trading capabilities and global investment tracking.
Access market data 24 hours a day, six days a week and invest in global stocks, options, futures, currencies, bonds and funds from one single account.
Questrade
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals
$4.95-$9.95
$9.95 + $1 per contract
$0
Free
Get $50 in free trades when you fund your account with a minimum of $1,000.
Opt for self-directed investing and save on fees or get a pre-built portfolio and take some of the guesswork out.
Scotia iTRADE
Bonds, Options, Mutual Funds, ETFs, GICs, International Equities
$4.99-$9.99
$9.99 + $1.25 contract ($4.99 + $1.25 contract if completed 150 trades or more a quarter)
$0
$9.99 ($4.99 if completed 150 trades or more a quarter)
Pay no annual account fees.
Buy, sell and trade ETFs, Equities, Options and more with competitive commissions.
Qtrade Direct Investing
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
$6.95 - $8.75
$6.95 - $8.75 + $1.25 per contract
$0 if conditions met, otherwise $25/quarter
$0 - $8.75
Trade 100 select ETFs free of charge.
Qtrade Direct Investing offers low trading commissions and an easy-to-use platform with access to powerful tools and a wide selection of investment options. Trade 100 ETFs free of charge and thousands more for $8.75 or lower.
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Compare up to 4 providers

Why should I invest in the S&P 400?

Mid-cap stocks represent an investing sweet spot: They occupy the middle ground between newly established startups and blue chip corporations. Companies in the mid-cap range can offer the best of both worlds.

Like small-cap stocks, they have the potential for significant growth. But they’re less volatile and more stable as a result of an already-established business model.

Investing in an index fund that focuses on mid-cap stocks is a unique opportunity that straddles growth and stability. But mid-cap stocks still have risk.

What are the risks of investing in S&P 400?

Some mid-cap stocks have plenty of growth ahead of them, while others have reached the pinnacle of their potential. Investors interested in mid-cap stocks should be wary of where the stock is in its life cycle. A mid-cap stock could be a company on the rise — or it could be a failing former large-cap stock. Before you invest, research the company you’re interested in and learn more about its history and potential.

How is the S&P 400 performing?

The graph below tracks the performance of the SPDR S&P MidCap 400 ETF (MDY) over time. The figures shown are in US dollars.

Bottom line

Investors interested in incorporating the S&P 400 into their portfolio can invest in individual stocks or index-tracking ETFs. But whether or not a mid-cap stock is a practical fit for your portfolio depends on where it is in its life cycle. Review investment accounts across multiple trading platforms to find the broker best suited to your investment goals.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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