At one time, I used the S&P500 as a quick “default” investment when I needed to invest some cash into equities. But in recent years, I have started using midcap stocks.
The S&P Mid Cap 400 Index continues reaching new all time historical highs. Unlike the S&P 500, it has surpassed the highs of October, 2007. I took a look at the market performance of three liquid ETFs from the highest closing date of the S&P 500 (October 9, 2007) until today using dividend adjusted price data from Yahoo Finance:
Ticker Type 10/9/2007 01/26/2011 %change
SPY Large-Cap 146.30 133.11 -9.0%
IJH Mid-Cap 88.21 96.86 +9.8%
IWM Small-Cap 80.96 82.07 +1.4%