Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

Invest in the S&P 400

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

Avatar

By

Shannon Terrell

Updated

Fact checked

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.

How to invest in the S&P 400

There are two 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.
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 (AEO)
  • AOL Inc. (AOL)
  • Domino’s Pizza Inc. (DPZ)
  • Fidelity National Financial Inc. (FNF)
  • Footlocker Inc. (FL)
  • Goodyear Tire Rubber (GT)
  • Grubhub Inc. (GRUB)
  • Interactive Brokers (IBKR)
  • Mattel Inc. (MAT)
  • New York Times Company (NYT)
  • SolarEdge Tech (SEDG)
  • Steel Dynamics Inc. (STLD)
  • Tripadvisor Inc. (TRIP)
  • Wyndham Hotels and Resorts Inc. (WH)
  • Yelp Inc. (YELP)

What ETFs track the S&P 400?

Major funds that track the S&P 400 include:

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

1 - 6 of 6
Name Product Ratings Available asset types Minimum deposit Stock trade fee Signup bonus
SoFi Invest
Finder Rating: 4.6 / 5: ★★★★★
SoFi Invest
★★★★★
Stocks, Options, ETFs, Cryptocurrency
$0
$0
Get up to $1,000 in stock
when you fund a new account within 30 days
Go to site
More Info
tastytrade
Finder Rating: 4.8 / 5: ★★★★★
tastytrade
★★★★★
Stocks, Options, ETFs, Cryptocurrency, Futures
$0
$0
Get $100-$5,000
when you open and fund an account with $5,000 to $1,000,000+
Highly commended for Best Derivatives Trading Platform award.
Go to site
More Info
eToro
Finder Rating: 4.2 / 5: ★★★★★
EXCLUSIVE
eToro
★★★★★
Stocks, Options, ETFs, Cryptocurrency
$0
$0
FINDER EXCLUSIVE: Get a guaranteed $25 bonus
when you sign up and deposit $100
Not available in NY, NV, MN, TN, and HI.
Go to site
More Info
Public.com
Finder Rating: 4 / 5: ★★★★★
Public.com
★★★★★
Stocks, ETFs, Cryptocurrency, Art, Treasury Bills, Collectibles
$0
$0
2.5% fee applies to all alternative asset transactions.
Go to site
More Info
Robinhood
Finder Rating: 4.2 / 5: ★★★★★
Robinhood
★★★★★
Stocks, Options, ETFs, Cryptocurrency
$0
$0
Get a free stock
when you successfully sign up and link your bank account.
Make unlimited commission-free trades, plus earn 5% interest on uninvested cash in your account with Robinhood Gold. Subscription fees apply.
Go to site
More Info
Wealthfront
Finder Rating: 4 / 5: ★★★★★
Wealthfront
★★★★★
Stocks, ETFs
$500
$0
Get a $50 bonus
when you fund your first taxable Automated Investing Account.
Automated stock and bond ETF investing with the ability to trade individual stocks for as little as $1 apiece.
Go to site
More Info
loading

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.

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

Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.

Finder is not an adviser or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.

More guides on Finder

Ask an Expert

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site