Mid-cap value: Flexibility and growth potential
June 13, 2012
Amid market volatility, mid-cap value stocks may offer an alternative for investors looking to add flexibility and growth potential to their portfolios.
Is your portfolio positioned to benefit from mid-cap value stocks?
Mid-cap value stocks may combine many of the features of the small-cap segment with some of the liquidity and business-strength characteristics traditionally associated with large-cap stocks.
Additionally, with more than 800 mid-cap value stocks to choose from, the universe of mid-cap companies is quite large — offering plenty of potential opportunities for active investors (source: Russell Investments).
Mid-cap value companies have produced enhanced risk-adjusted returns over the past 15 years, outperforming both the small- and large-cap value segments as represented by the figures here (source: Morningstar, period ended March 31, 2012).
Mid-cap value stocks represented by the Russell Midcap® Value Index
Large-cap value stocks represented by the Russell 1000® Value Index
Small-cap value stocks represented by the Russell 2000® Value Index
Chart is for comparison only. Past performance is not a guarantee of future results.
Sharpe ratio defined
Developed by William F. Sharpe, the Sharpe ratio helps indicate whether a portfolio's returns are due to well-thought-out investment decisions or a result of excess risk. Typically, the higher the Sharpe ratio, the better a fund's historical risk-adjusted performance.
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and its summary prospectus, which may be obtained by visiting delawarefunds.com/literature or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.
IMPORTANT RISK CONSIDERATIONS
Investing involves risk, including the possible loss of principal.
Delaware Mid Cap Value Fund considers medium-sized companies to be those companies whose market capitalizations fall within the range represented in the Russell Midcap Value Index at the time of the Fund’s investment. The index’s last reconstitution took place on June 27, 2011. As of May 31, 2012, the smallest company included in the index had a market capitalization of $101 million and the largest company included in the index had a market capitalization of $18.7 billion.
Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
All third-party marks cited are the property of their respective owners.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. The Russell Midcap Value Index measures the performance of the mid-cap value segment of the US equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Value Index measures the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Value Index measures the performance of the small-cap value segment of the US equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.