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Annual Asset Class Returns

The chart below shows several issues investors struggle with all the time. It’s difficult to pick the best performing investment year after year, yet for many investors, it’s an annual event. They look for an encore, picking the best asset class last year with the hope of a repeat performance. Yet, betting on last year’s winner rarely works out.

Assets at the top of the chart one year could be at the bottom the next, and vice versa. Much of this is due to reversion to the mean. But over the long-term, those big swings even out.  The chart shows annual returns for eight asset classes against a diversified portfolio. Diversification works to smooth out those big swings in the short-term. While you’ll never get the biggest gains of any year, you avoid the huge losses.

The table below ranks the best to worst investment returns by asset class over the past 15 years. Hover over the table to highlight the asset class returns.


Asset Class Returns

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total
HG Bnd
5.2%
EM
79.0%
REIT
28.0%
REIT
8.3%
REIT
19.7%
Sm Cap
38.8%
REIT
28.0%
REIT
2.8%
Sm Cap
21.3%
EM
37.8%
Cash
1.8%
Lg Cap
31.5%
Sm Cap
20.0%
REIT
41.3%
Cash
1.6%
Lg Cap
254.6%
Cash
1.7%
HY Bnd
57.5%
Sm Cap
26.9%
HG Bnd
7.8%
EM
18.6%
Lg Cap
32.4%
Lg Cap
13.7%
Lg Cap
1.4%
HY Bnd
17.5%
Int’l
25.6%
HG Bnd
0.0%
REIT
28.7%
EM
18.7%
Lg Cap
28.7%
HY Bnd
-11.2%
Sm Cap
182.2%
AA
-22.4%
Int’l Stk
32.5%
EM
19.2%
HY Bnd
4.4%
Int’l Stk
17.9%
Int’l Stk
23.3%
AA
6.9%
HG Bnd
0.6%
Lg Cap
12.0%
Lg Cap
21.8%
HY Bnd
-2.3%
Sm Cap
25.5%
Lg Cap
18.4%
Sm Cap
14.8%
HG Bnd
-13.0%
REIT
162.5%
HY Bnd
-26.4%
REIT
28.0%
HY Bnd
15.2%
Lg Cap
2.1%
Sm Cap
16.4%
AA
11.5%
HG Bnd
6.0%
Cash
0.0%
EM
11.6%
Sm Cap
14.7%
REIT
-4.0%
Int’l Stk
22.7%
AA
9.8%
Int’l Stk
11.8%
Int’l Stk
-14.0%
HY Bnd
137.3%
Sm Cap
-33.8%
Sm Cap
27.2%
Lg Cap
15.1%
AA
0.3%
Lg Cap
16.0%
HY Bnd
7.4%
Sm Cap
4.9%
Int’l Stk
-0.4%
REIT
8.6%
AA
14.6%
Lg Cap
-4.4%
AA
18.9%
Int’l Stk
8.3%
AA
10.9%
AA
-16.5%
AA
104.0%
Lg Cap
-37.0%
Lg Cap
26.5%
AA
13.5%
Cash
0.1%
HY Bnd
15.6%
REIT
2.9%
HY Bnd
2.5%
AA
-1.3%
AA
7.2%
REIT
8.7%
AA
-5.6%
EM
18.9%
HY Bnd
7.5%
HY Bnd
5.4%
Lg Cap
-18.1%
HG Bnd
48.3%
REIT
-37.7%
AA
24.6%
Int’l Stk
8.2%
Sm Cap
-4.2%
AA
12.2%
Cash
0.1%
Cash
0.0%
Sm Cap
-4.4%
HG Bnd
2.7%
HY Bnd
7.5%
Sm Cap
-11.0%
HY Bnd
14.4%
HG Bnd
6.1%
Cash
0.0%
EM
-19.7%
Int’l Stk
40.5%
Int’l Stk
-43.1%
HG Bnd
5.9%
HG Bnd
6.5%
Int’l Stk
-11.7%
HG Bnd
4.2%
HG Bnd
-2.0%
EM
-1.8%
HY Bnd
-4.6%
Int’l Stk
1.5%
HG Bnd
3.5%
Int’l Stk
-13.4%
HG Bnd
8.7%
Cash
0.6%
HG Bnd
-1.5%
Sm Cap
-20.4%
EM
16.0%
EM
-53.2%
Cash
0.1%
Cash
0.1%
EM
-18.2%
Cash
0.1%
EM
-2.3%
Int’l Stk
-4.5%
EM
-14.6%
Cash
0.3%
Cash
0.8%
EM
-14.3%
Cash
2.2%
REIT
-5.1%
EM
-2.2%
REIT
-24.4%
Cash
9.8%
Abbr. Asset Class – Index Annual Best Worst
Lg Cap Large Cap Stocks – S&P 500 Index 8.81% 32.4% -37.0%
Sm Cap Small Cap Stocks – Russell 2000 Index 7.16% 38.8% -33.8%
Int’l Stk International Developed Stocks – MSCI EAFE Index 2.29% 32.5% -43.1%
EM EM Stocks – MSCI Emerging Markets Index 0.99% 79.0% -53.2%
REIT REITs – FTSE NAREIT All Equity Index 6.70% 41.3% -37.7%
HG Bnd High Grade Bonds – Bloomberg Barclays U.S. Agg Index 2.57% 8.7% -13.01%
HY Bnd High Yield Bonds – ICE BofA US High Yield Index 6.02% 57.5% -26.4%
Cash Cash – S&P U.S. Treasury Bill 0-3 Mth Index 0.62% 1.66% 0.0%
AA Asset Allocation Portfolio* 4.87% 24.6% -22.4%
Past performance does not guarantee future returns. The historical performance shows changes in market trends across several asset classes over the past fifteen years. Returns represent total annual returns (reinvestment of all distributions) and does not include fees and expenses. The investments you choose should reflect your financial goals and risk tolerance. For assistance, talk to a financial professional. All data are as of 12/31/22.
*Asset Allocation Portfolio is 15% large cap stocks, 15% international stocks, 10% small cap stocks, 10% emerging market stocks, 10% REITs, 40% high-grade bonds, and annual rebalancing.

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More Charts

  • S&P 500 Sector Returns
  • International Stock Market Returns
  • Emerging Stock Market Returns
  • Historical Annual Returns

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