Verdex Enrollment - Web Book - Ready - Flipbook - Page 26
Still trying to time the market? Take a closer look.
This table demonstrates how various asset classes have performed on an annual basis for the last 20 years. As you can see, the
This table demonstrates how various asset classes have performed on an annual basis for the last 20 years. As you can see, the best performing asset classes change dramatically
best performing asset classes change dramatically from year to year. However, a diversified portfolio (shown in the white boxes)
from year to year. However, a diversified portfolio (shown in the white boxes) that consists of an equal weighting of each of the nine asset classes shown in the chart is much less
that consists of an equal weighting of each of the nine asset classes shown in the chart is much less volatile. Since no one can
volatile. Since no one can predict the future, diversification is critically important to help you reach your investment goals.
predict the future, diversification is critically important to help you reach your investment goals.
Best
Annual
returns
Worst
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Small
growth
stocks
48.54%
REITs
Mid-cap
stocks
REITs
Foreign
stocks
Inv-grade
bonds
High yield
bonds
REITs
12.18%
5.24%
58.76%
Large
growth
stocks
5.67%
Small
value
stocks
31.74%
Large
growth
stocks
30.21%
Large
growth
stocks
36.39%
Large
growth
stocks
38.49%
REITs
35.92%
Small
growth
stocks
43.30%
Inv-grade
bonds
12.65%
Small
value
stocks
18.05%
REITs
31.49%
Small
growth
stocks
29.09%
43.06%
Small
value
stocks
46.03%
Small
value
stocks
22.25%
REITs
Large
growth
stocks
11.81%
High yield
bonds
Mid-cap
stocks
REITs
Inv-grade
bonds
REITs
Mid-cap
stocks
REITs
Foreign
stocks
-25.88%
40.48%
28.48%
7.84%
17.77%
34.76%
Large
growth
stocks
-1.51%
Mid-cap
stocks
12.13%
Small
value
stocks
23.48%
Small
growth
stocks
34.63%
Mid-cap
stocks
Mid-cap
stocks
Foreign
stocks
Large
growth
stocks
37.21%
4.96%
Small
growth
stocks
28.48%
Mid-cap
stocks
25.48%
Large
value
stocks
17.51%
High yield
bonds
11.37%
Small
value
stocks
-28.92%
High yield
bonds
20.22%
Small
growth
stocks
7.05%
Mid-cap
stocks
40.06%
Large
value
stocks
22.25%
REITs
Diversified
portfolio
Foreign
stocks
Inv-grade
bonds
Diversified
portfolio
Foreign
stocks
Foreign
stocks
Foreign
stocks
21.53%
6.97%
-32.03%
35.41%
Large
growth
stocks
2.64%
REITs
7.10%
Small
value
stocks
24.50%
Mid-cap
stocks
36.74%
Large
value
stocks
16.49%
Foreign
stocks
Diversified
portfolio
Large
value
stocks
7.05%
Diversified
portfolio
Mid-cap
stocks
Diversified
portfolio
Foreign
stocks
5.60%
Small
growth
stocks
34.47%
Diversified
portfolio
17.21%
Large
value
stocks
-36.85%
19.68%
1.04%
Mid-cap
stocks
High yield
bonds
REITs
Diversified
portfolio
Large
growth
stocks
16.71%
Large
value
stocks
0.39%
Large
value
stocks
15.51%
Mid-cap
stocks
-1.55%
15.37%
Small
growth
stocks
-2.91%
8.69%
30.38%
High yield
bonds
Large
growth
stocks
10.76%
Large
growth
stocks
27.60%
Inv-grade
bonds
Small
value
stocks
-14.48%
Mid-cap
stocks
10.80%
Small
value
stocks
34.52%
Mid-cap
stocks
Inv-grade
bonds
High yield
bonds
13.22%
0.55%
17.13%
Small
growth
stocks
22.17%
Large
growth
stocks
33.48%
Large
growth
stocks
13.05%
Diversified
portfolio
Mid-cap
stocks
Mid-cap
stocks
-1.16%
13.80%
18.52%
-4.57%
27.30%
16.82%
Large
value
stocks
25.16%
Diversified
portfolio
Diversified
portfolio
Diversified
portfolio
Mid-cap
stocks
13.20%
14.56%
-6.04%
Large
value
stocks
26.54%
Diversified
portfolio
10.30%
Small
growth
stocks
-1.38%
Diversified
portfolio
16.80%
Large
value
stocks
32.53%
13.55%
22.58%
-17.32%
Small
value
stocks
8.99%
High yield
bonds
Foreign
stocks
Inv-grade
bonds
Foreign
stocks
Diversified
portfolio
Diversified
portfolio
Diversified
portfolio
5.97%
-1.84%
Large
value
stocks
-8.27%
Inv-grade
bonds
23.44%
Large
value
stocks
13.66%
REITs
15.78%
Small
growth
stocks
11.32%
25.84%
7.51%
18.74%
-17.88%
8.93%
Diversified
portfolio
Diversified
portfolio
Mid-cap
stocks
REITs
Diversified
portfolio
High yield
bonds
Foreign
stocks
Foreign
stocks
-2.44%
8.60%
Small
value
stocks
7.84%
Foreign
stocks
22.57%
Small
growth
stocks
5.60%
-8.93%
24.60%
7.05%
18.54%
-18.36%
Large
value
stocks
8.83%
Large
growth
stocks
15.26%
High yield
bonds
Foreign
stocks
Foreign
stocks
High yield
bonds
Mid-cap
stocks
8.48%
7.50%
-9.06%
Small
value
stocks
4.63%
REITs
4.71%
Small
value
stocks
22.39%
High yield
bonds
7.44%
Large
value
stocks
-3.83%
5.26%
-24.51%
8.04%
Small
growth
stocks
14.59%
REITs
High yield
bonds
Large
growth
stocks
7.08%
REITs
High yield
bonds
Large
value
stocks
2.80%
Small
growth
stocks
2.83%
Small
growth
stocks
-26.36%
High yield
bonds
5.07%
Small
growth
stocks
-9.31%
Small
value
stocks
-7.47%
Inv-grade
bonds
Inv-grade
bonds
Inv-grade
bonds
REITs
Inv-grade
bonds
3.54%
8.72%
-7.57%
-1.54%
Large
growth
stocks
-29.14%
Inv-grade
bonds
2.65%
Small
value
stocks
-12.86%
17.28%
15.91%
32.94%
15.75%
Large
growth
stocks
5.26%
15.26%
2.27%
-37.97%
31.78%
Large
value
stocks
30.03%
Small
growth
stocks
14.31%
Small
value
stocks
4.71%
Small
growth
stocks
13.35%
Diversified
portfolio
REITs
1.95%
Large
growth
stocks
-38.44%
28.61%
Large
growth
stocks
29.75%
High yield
bonds
Small
growth
stocks
4.15%
High yield
bonds
Small
growth
stocks
-38.54%
Small
value
stocks
20.58%
High yield
bonds
10.76%
Large
value
stocks
-0.17%
High yield
bonds
High yield
bonds
Small
value
stocks
-9.78%
-41.46%
Large
value
stocks
19.69%
Foreign
stocks
2.76%
Large
growth
stocks
9.07%
Mid-cap
stocks
28.78%
Large
growth
stocks
6.30%
13.21%
Small
value
stocks
-5.50%
2.47%
Small
value
stocks
4.22%
Inv-grade
bonds
Inv-grade
bonds
Inv-grade
bonds
Inv-grade
bonds
REITs
Foreign
stocks
Inv-grade
bonds
Inv-grade
bonds
Foreign
stocks
Inv-grade
bonds
Inv-grade
bonds
High yield
bonds
4.10%
4.34%
2.43%
4.33%
-16.82%
-41.85%
5.93%
6.54%
-6.86%
4.21%
-2.02%
2.46%
Foreign stocks
Mid-cap stocks
Small
value
stocks
28.27%
2.52%
Foreign
stocks
Diversified portfolio
Large value stocks
Mid-cap
stocks
Large
value
stocks
17.34%
34.63%
14.94%
Large
value
stocks
-7.54%
Large
value
stocks
13.45%
Diversified
portfolio
11.14%
0.01%
average
2022 2003-2022
-4.43%
24.62%
-2.08%
30.54%
14.32%
17.10%
-11.18%
-13.01%
Small
growth
stocks
9.50%
REITs
9.00%
Foreign
stocks
7.26%
3.10%
High yield bonds
Investment-grade bonds
Large growth stocks
Small value stocks
REITs
Small growth stocks
As of December 31, 2022. Past performance does not guarantee future results. This chart represents the performance of 9 asset classes over a 20-year period.
Source: Morningstar. Investment grade bonds is represented by the Bloomberg U.S. Aggregate Bond Index. U.S. REITs is represented by the MSCI U.S. REIT Index. High yield bonds is represented by the Bloomberg U.S. High-Yield
2% Issuer Capped Index. Large growth stocks is represented by the Russell 1000 Growth Index. Large value stocks is represented by the Russell 1000 Value Index. Small growth stocks is represented by the Russell 2000 Growth
Index. Small value stocks is represented by the Russell 2000 Value Index. Mid-cap stocks is represented by the Russell Mid Cap Index. Foreign stocks is represented by the MSCI ACWI NR Index. Diversified portfolio is represented
by an equal weighted blended composed of Bloomberg U.S. Aggregate Bond Index, MSCI U.S. REIT Index, Bloomberg U.S. High-Yield 2% Issuer Capped Index, Russell 1000 Growth Index, Russell 1000 Value Index, Russell 2000
Growth Index, Russell 2000 Value Index, Russell Mid Cap Index, and MSCI ACWI NR Index.
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