This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

Etsy operates a top-10 e-commerce marketplace operator in the U.S. and the U.K., with sizable operations in Germany, France, Australia, and Canada. The firm dominates an interesting niche, connecting buyers and sellers through its online market to exchange vintage and craft goods. With $13.2 billion in 2023 consolidated gross merchandise volume, Etsy has cemented itself as one of the largest players in a quickly growing space, generating revenue from listing fees, commissions on sold items, advertising services, payment processing, and shipping labels. As of the end of 2023, the firm connected more than 96 million buyers and 9 million sellers on its marketplace properties: Etsy, Reverb (musical equipment), and Depop (clothing resale).

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

Founded in 2005, Etsy is a global marketplace for creative goods, with 2023 revenue of $2.7 billion. It went public on April 16, 2015 and became a member of the S&P 500 in 2020. Etsy is a 'two-sided marketplace' that connects sellers of more than 50 merchandise categories with millions of buyers under the motto: 'keep commerce human.' Headquartered in Brooklyn, New York, Etsy is one of the top-ranked U.S. e-commerce sites by monthly visits. Etsy's top six product categories in 2023 were homewares and home furnishings; jewelry and personal accessories; apparel; craft supplies; paper and party supplies; and toys and games. These categories, excluding represented approximately $10 billion, or 87% of 2023 Gross merchandise sales. The company's key markets include the U.S., the United Kingdom, Germany, Canada, Australia, France, and India. In 2023, 45% of the company's GMS was generated when either the buyer, seller, or both were outside the U.S. As of December 31, 2023, the company had 9.0 million active sellers, and 97 million active buyers. According to a company survey, about 82% of Etsy sellers are women. The company had 2,420 employees at the end of 2023, down from 2,790 employees at the end of 2022 as a result of a restructuring plan. Etsy reports results on a calendar-year basis.