The Russell Midcap ETF and S&P500 Midcap ETF gained 8.43% and 6.67% for the quarter, respectively, while the L2 Midcap Select Strategy rose 6.83%1 net. Since inception in March 2021, the L2 Midcap Select Strategy is up 66.52%, nearly double the returns of both benchmarks.
We encourage our readers to note that the S&P Midcap ETF underperformed the Russell Midcap ETF due to the quality bias in S&P’s methodology. Effectively
quality got punished. We believe the strategy’s underperformance relative to the Russell Midcap ETF is due to the re-emergence of investor preference for speculative and low-quality assets vs. our strong preference for higher quality companies. Over time, the benefits of avoiding low-quality and loss-making firms is overwhelming and incontrovertible in the data
L2 Midcap Select – Q2 2025
Table of contents
When
July 16, 2025
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
Q2 2025 STRATEGY PERFORMANCE:
The Russell Midcap ETF and S&P500 Midcap ETF gained 8.43% and 6.67% for the quarter, respectively, while the L2 Midcap Select Strategy rose 6.83%1 net. Since inception in March 2021, the L2 Midcap Select Strategy is up 66.52%, nearly double the returns of both benchmarks.
We encourage our readers to note that the S&P Midcap ETF underperformed the Russell Midcap ETF due to the quality bias in S&P’s methodology. Effectively
quality got punished. We believe the strategy’s underperformance relative to the Russell Midcap ETF is due to the re-emergence of investor preference for speculative and low-quality assets vs. our strong preference for higher quality companies. Over time, the benefits of avoiding low-quality and loss-making firms is overwhelming and incontrovertible in the data