The Missing Middle

• The rapid growth of the largest US companies has increased concentration within capitalization-weighted indexes and, by extension, many investor portfolios.
• Pairing dedicated small cap with a large cap allocation can create an unintended barbell: mega cap at one end, small cap at the other, and a broad middle that SMID does not fully cover.
• A Small + Mid framework provides intentional exposure across the full market cap spectrum below large cap – an area where active management and momentum have historically found opportunity.