Gallery:Step 9|Step 9: History

Returns Data: 1973-1998

Gallery:Step 9|Step 9: History

The following table shows the returns for major asset classes since 1973. Investors can use this data is to determine the relative risk and return characteristics of the asset classes.

 

Year Short
Term
Bonds
Long
Term
Bonds
S&P
500
U.S.
Large
Value
6-10
Small
Blend
6-10
Small
Value
EAFE Int'l
Large
Value

 

1973

 

6.3

 

-1.1

 

-14.7

 

-1.6

 

-39.0

 

-26.0

 

-14.9

 

-14.9

 

1974

 

9.4

 

4.4

 

-26.5

 

-21.9

 

-28.7

 

-18.1

 

-23.2

 

-23.2

 

1975

 

7.5

 

9.2

 

37.2

 

50.5

 

65.7

 

54.5

 

35.4

 

49.7

 

1976

 

13.2

 

16.8

 

23.9

 

47.7

 

51.1

 

53.6

 

2.5

 

6.7

 

1977

 

2.2

 

-0.7

 

-7.2

 

-2.2

 

26.8

 

21.8

 

18.0

 

33.2

 

1978

 

5.5

 

-1.2

 

6.6

 

6.9

 

25.8

 

21.8

 

32.6

 

42.2

 

1979

 

10.7

 

-1.2

 

18.4

 

25.9

 

43.2

 

38.0

 

4.8

 

4.4

 

1980

 

8.0

 

-4.0

 

32.4

 

18.8

 

41.9

 

29.1

 

22.6

 

18.0

 

1981

 

21.7

 

1.9

 

-4.9

 

9.3

 

-2.7

 

10.5

 

-2.3

 

13.6

 

1982

 

31.3

 

40.4

 

21.4

 

23.9

 

28.0

 

37.7

 

-1.9

 

2.5

 

1983

 

7.2

 

0.7

 

22.5

 

30.9

 

39.7

 

44.2

 

23.7

 

31.5

 

1984

 

9.1

 

15.5

 

6.3

 

12.0

 

-6.7

 

5.1

 

7.4

 

7.6

 

1985

 

23.5

 

31.0

 

32.2

 

29.9

 

24.7

 

34.7

 

56.2

 

67.3

 

1986

 

17.0

 

24.5

 

18.5

 

18.4

 

6.9

 

16.9

 

69.4

 

70.2

 

1987

 

3.3

 

-2.7

 

5.2

 

6.7

 

-9.3

 

-6.3

 

24.6

 

31.2

 

1988

 

6.3

 

9.7

 

16.8

 

26.8

 

22.9

 

28.8

 

28.3

 

33.5

 

1989

 

9.5

 

18.1

 

31.5

 

25.5

 

10.2

 

19.7

 

10.5

 

24.7

 

1990

 

10.8

 

6.2

 

-3.2

 

-22.1

 

-21.6

 

-20.8

 

-23.4

 

-15.6

 

1991

 

14.6

 

19.3

 

30.1

 

34.4

 

44.6

 

39.4

 

15.9

 

12.3

 

1992

 

7.3

 

9.4

 

7.3

 

26.3

 

23.4

 

29.9

 

-13.1

 

-3.1

 

1993

 

8.3

 

18.2

 

9.6

 

20.4

 

21.0

 

25.8

 

25.9

 

47.2

 

1994

 

-3.2

 

-7.8

 

1.3

 

-4.5

 

3.1

 

1.2

 

5.3

 

8.8

 

1995

 

9.6

 

31.7

 

37.1

 

38.4

 

34.5

 

29.3

 

13.1

 

11.5

 

1996

 

6.6

 

-0.9

 

22.6

 

20.2

 

17.6

 

22.3

 

6.3

 

7.8

 

1997

 

6.4

 

15.9

 

33.1

 

28.1

 

22.8

 

30.8

 

5.5

 

-3.1

 

1998

 

5.4

 

13.1

 

28.7

 

12.0

 

-5.5

 

-7.3

 

20.3

 

14.9

 

Annual
Return

 

9.7

 

9.6

 

13.5

 

16.3

 

13.0

 

17.7

 

12.2

 

16.3

 

Annual Risk*

 

7.1

 

12.4

 

17.0

 

18.1

 

23.5

 

21.9

 

21.9

 

23.7

 

 

Asset Classes

The primary asset classes (and their corresponding indexes) used to construct globally-diversified asset class portfolios are:

 

Asset Class Index Used
Short-term bonds DFA Five-Year Gov't Bond
S&P 500 S&P 500 index
U.S. Large Value DFA U.S. Large Cap Value index
6-10 Small Blend DFA U.S. 6-10 Small Co. index
6-10 Small Value DFA U.S. 6-10 Value index
EAFE MS EAFE index
Int'l Large Value DFA International Value index

 

 

EAFE returns were substituted for Int'l Large Value in 1973 and 1974 for lack of data.

We utilize the returns data for the Dimensional Fund Advisors (DFA) indexes because we believe they best represent each asset class and we receive the data on a monthly basis. We are not promoting or recommending particular DFA, Vanguard, or other mutual funds.

IndexFunds.com Staff

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