Long Term Perspective

This series is relatively new to the S&P family. The index consists of 400 domestic stocks chosen for market size, liquidity, and industry group representation. It includes industrials, financials, utilities and transportation just like the S&P 500. The difference is that the market cap of these companies is smaller than for the 500 index.

This series of mid-cap stocks increased 9.0 percent in 2006 – a healthy gain but representing a continued slowing from the recent high of 34.0 percent for 2003.

Short Term Perspective

The Mid Cap index incorporates a greater portion of its companies listed from the NASDAQ (26 percent) compared to the S&P 500 (13 percent). NASDAQ companies tend to be younger than those listed on the New York Stock Exchange (NYSE).

The Mid Cap index was up 6.4 percent in September 2007 relative to a year ago. This was up from 15.1 percent for August’s year-on-year pace. Through September, this index was 10.0 percent higher than year-end 2006.

The Mid Cap index fell 5.2 percent in November, after a 2.6 percent gain in October. The mid cap segment of the market continues to outperform the large and small cap segments this year, being up 7.0 percent for the year-to-date gain, compared to up 4.4 percent for the S&P 500 and down 0.3 percent for the S&P Small Cap Index.