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Investment Q&A

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BMO S&P 500 Index ETF (ZSP $99.84)
- $99.84 P/E (TTM): 25.8X Cap: $20.58B
- View ZSP Profile
- View Questions on ZSP
iShares S&P U.S. Mid-Cap Index ETF (XMC $36.16)
- $36.16 P/E (TTM): 19.87X Cap: $621M
- View XMC Profile
- View Questions on XMC
BMO S&P US Mid Cap Index ETF (ZMID $50.61)
- $50.61 P/E (TTM): 21.23X Cap: $302M
- View ZMID Profile
- View Questions on ZMID

Q: I keep reading how the S&P is trading at high values compared to historical values and because of that is risky. do you think that etfs that track the S%P 500 (e.g. ZSP) are more risky than a mid-cap ETF such as ZMID or XMC which are trading at their historical values?

Asked by Mary on March 25, 2026

5i Research Answer:

Probably not. First SPX valuation at 22x earnings is not that high, in our view, considering expected earnings growth (13%) and possible lower interest rates (war dependent). In addition, in an uncertain market, even cheaper midcap stocks tend to get avoided by investors, as they prefer larger companies for greater perceived safety.

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