Best ETFs in Small-Cap, Mid-Cap Space

Shares of Balchem are sitting near their 52-week high as the nutrition products company is coming off of a record first quarter that included a 31.6% increase in diluted EPS.

Taking the High Road

It will be interesting to see if small-cap and mid-cap ETFs are able to maintain their relative strength in the second half of the year. If the broader markets continue to face resistance, this trend could face a correction.

"The small- and mid-caps are a little different from other major market sectors in terms of trend," says Dave Fry, Founder of ETF Digest. "However if the economy weakens further, these sectors, particularly small-caps, will face a tougher road higher since investors will be more apt to avoid risk and high P/E stocks more normally found in these sectors."