Is 10 Year Long Enough For Portfolio Comparison?
Current bull market in US stocks has been so consistently stronger than others that it’s becoming increasingly difficult to argue for the benefits of asset allocation or diversification. In this newsletter, however, we try to walk through historical performance and look at current live data (and likely some of your portfolios). We hope this could help us to better understand how to evaluate a portfolio in an often used ‘long term’ period.
Recent stock asset returns
First, let’s compare the major stock asset performance:
|1Yr AR||3Yr AR||5Yr AR||10Yr AR||15Yr AR||20 Yr AR|
|VFINX (Vanguard 500 Index Investor)||4.8%||16.3%||12.3%||13.2%||9.6%||9.3%||6.6%|
|NAESX (Vanguard Small Cap Index Inv)||8.2%||19.1%||10.9%||12.5%||10.5%||11.5%||8.8%|
|VGTSX (Vanguard Total Intl Stock Index Inv)||0.2%||11.0%||6.3%||6.4%||2.5%||7.9%||5%|
|VEIEX (Vanguard Emerging Mkts Stock Idx)||-1.1%||12.8%||5.6%||4.5%||1.6%||10.7%||8.3%|
*: NOT annualized
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