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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Stefon Walters, The Motley FoolSun, December 7, 2025 at 3:56 PM GMT+1 4 min readA well-rounded portfolio should include stocks from different industries and sizes.Mid-cap stocks are generally the sweet spot between stability and risk.Mid-cap stocks tend to outperform during early-to-mid stages of economic expansion.10 stocks we like better than Vanguard Index Funds - Vanguard Mid-Cap ETF ›When I invest in exchange-traded funds (ETFs), I generally intend to hold them for the long haul. I use the same thought process when investing in individual stocks, but changing industry landscapes or company-specific setbacks can make jumping ship a better option than staying on a sinking boat. With broad ETFs, that's not usually a concern, because many companies are doing the heavy lifting.One stock that has been a staple in my portfolio is the Vanguard Mid-Cap ETF (NYSEMKT: VO). The main reason I continue to buy VO with no intention of selling is that I believe a truly well-rounded portfolio should include companies of all sizes, because each has its own advantages.Image source: Getty Images.There will inevitably be volatility regardless of what kind of stock you're investing in, but one of the advantages of investing in large-cap stocks is the relative stability that comes with them. These companies are often well-established industry leaders and have the financial resources to weather most economic storms.The selling point of investing in small-cap stocks is the growth opportunities they offer due to their relatively small size. With this growth opportunity comes extra risk because their operations are more sensitive to the broader environment. But again, that's the trade-off you make.Mid-cap stocks are the sweet spot between the two. These companies are generally large enough to have proven business models and consistent cash flow, yet they're small enough that there are still plenty of growth opportunities available to them if they decide to expand into new markets versus continuing to operate in a lucrative niche.Since VO's January 2004 inception, its returns have almost mirrored the S&P 500's (SNPINDEX: ^GSPC), up 488% compared to the S&P 500's 490%. Over the past decade, the S&P 500 has noticeably outperformed VO, largely due to the growth in megacap stocks, but that hasn't made me abandon my routine VO investments.My focus isn't on chasing gains; it's about keeping a diversified portfolio that allows me to benefit from different economic environments. In the case of mid-cap stocks and VO, they tend to outperform the market during periods of early to-mid economic expansion.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,846.51 -23.89 (-0.35%)Dow 3047,739.32 -215.67 (-0.45%)Nasdaq23,545.90 -32.22 (-0.14%)Russell 20002,520.98 -0.50 (-0.02%)VIX16.66 +1.25 (+8.11%)Gold4,222.80 +5.10 (+0.12%)Trending tickersNVDA NVIDIA Corporation 185.55 +3.14 (+1.72%)WVE Wave Life Sciences Ltd. 18.52 +11.03 (+147.26%)CETX Cemtrex, Inc. 7.05 +3.98 (+129.64%)AMD Advanced Micro Devices, Inc. 221.11 +3.14 (+1.44%)TOL Toll Brothers, Inc. 136.20 -2.74 (-1.97%)PortfolioSign in to access your portfolioSign inTop gainersWVE Wave Life Sciences Ltd. 18.52 +11.03 (+147.26%)GPCR Structure Therapeutics Inc. 69.98 +35.42 (+102.49%)KYMR Kymera Therapeutics, Inc. 94.30 +27.68 (+41.55%)TERN Terns Pharmaceuticals, Inc. 40.23 +10.87 (+37.02%)CFLT Confluent, Inc. 29.87 +6.73 (+29.08%)Top losersAPD Air Products and Chemicals, Inc. 236.05 -24.64 (-9.45%)CRK Comstock Resources, Inc. 24.80 -2.57 (-9.39%)LAZ Lazard, Inc. 50.66 -4.09 (-7.47%)LEGN Legend Biotech Corporation 26.12 -2.01 (-7.15%)UL Unilever PLC 55.30 -4.18 (-7.03%)Most activeNVDA NVIDIA Corporation 185.55 +3.14 (+1.72%)WBD Warner Bros. Discovery, Inc. 27.23 +1.15 (+4.41%)CFLT Confluent, Inc. 29.87 +6.73 (+29.08%)WVE Wave Life Sciences Ltd. 18.52 +11.03 (+147.26%)HBI HanesBrands Inc. 6.47 0.00 (0.00%)Top economic eventsEarnings eventsMy earnings eventsEarnings events