Recent Investment Returns By Asset Class – October 2012

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Here is my monthly update of the trailing total returns for the major asset classes that I find useful. I am using passive ETFs to track asset classes, as they represent “real” investments that you can buy and sell. Return data was taken after market close at the end of October 2012.

Asset Class
Representative ETF
Benchmark Index
1-Mo 1-Year 5-Year 10-Year
Broad US Stock Market
Vanguard Total Stock Market (VTI)
MSCI US Broad Market Index
-1.75% 14.75% 1.57% 8.73%
Broad International Stock Market
Vanguard Total International Stock (VXUS)
MSCI All Country World ex USA Investable Market Index
0.56% 5.43% -5.49% 8.90%
Emerging Markets
Vanguard Emerging Markets ETF (VWO)
MSCI Emerging Markets Index
-0.41% 3.47% -3.94% 15.80%
REIT (Real Estate)
Vanguard REIT ETF (VNQ)
MSCI US REIT Index
-0.82% 14.72% 2.26% 11.89%
Broad US Bond Market
Vanguard Total Bond Market ETF (BND)
Barclays U.S. Aggregate Float Adj. Bond Index
0.11% 4.99% 6.35% 5.39%
US Treasury Bonds – Short-Term
iShares 1-3 Year Treasury Bond ETF (SHY)
Barclays U.S. 1-3 Year Treasury Bond Index
-0.06% 0.30% 2.58% 2.66%
US Treasury Bonds – Long-Term
iShares 20+ Year Treasury Bond ETF (TLT)
Barclays U.S. 20+ Year Treasury Bond Index
-0.12% 10.97% 10.82% 8.21%
TIPS / Inflation-Linked Bonds
iShares TIPS Bond ETF (TIP)
Barclays U.S. TIPS Index
0.83% 7.85% 7.72% n/a
Gold
SPDR Gold Shares (GLD)
Price of Gold Bullion
-3.25% -0.57% 16.38% n/a

Here is a chart of the 1-year trailing returns for the major asset classes above, which I use for rebalancing. Note that I do not necessarily invest in all the listed asset classes, see my personal portfolio for more details.

I’ve barely been investing for a decade, but this month I notice that all the 10-year returns look pretty good for all the asset classes. (The 2001 dot-com crash is now left out.) Is this why everyone seems to be pretty happy with the market right now? I wonder if the good times will last.

[Read more…]

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Recent Investment Returns By Asset Class – September 2012

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

Here is my monthly update of the trailing total returns for the major asset classes that I find useful. I am using passive ETFs to track asset classes, as they represent “real” investments that you can buy and sell. See August 2012 asset class returns for additional background and comparison.

Asset Class
Representative ETF
Benchmark Index
1-Mo 1-Year 5-Year 10-Year
Broad US Stock Market
Vanguard Total Stock Market (VTI)
MSCI US Broad Market Index
2.58% 30.26% 1.57% 8.73%
Broad International Stock Market
Vanguard Total International Stock (VXUS)
MSCI All Country World ex USA Investable Market Index
1.93% 13.58% -4.52% 9.44%
Emerging Markets
Vanguard Emerging Markets ETF (VWO)
MSCI Emerging Markets Index
5.32% 17.74% -1.73 16.58
REIT (Real Estate)
Vanguard REIT ETF (VNQ)
MSCI US REIT Index
-1.84% 32.32% 2.68% 11.42%
Broad US Bond Market
Vanguard Total Bond Market ETF (BND)
Barclays U.S. Aggregate Float Adj. Bond Index
0.09% 5.00% 6.52% 5.31%
US Treasury Bonds – Short-Term
iShares 1-3 Year Treasury Bond ETF (SHY)
Barclays U.S. 1-3 Year Treasury Bond Index
0.02% 0.40% 2.69% 2.69%
US Treasury Bonds – Long-Term
iShares 20+ Year Treasury Bond ETF (TLT)
Barclays U.S. 20+ Year Treasury Bond Index
-2.32% 6.10% 11.19% 7.82%
TIPS / Inflation-Linked Bonds
iShares TIPS Bond ETF (TIP)
Barclays U.S. TIPS Index
0.50% 8.87% 7.79% n/a
Gold
SPDR Gold Shares (GLD)
Price of Gold Bullion
7.70% 9.20% 18.57% n/a

Here is a chart of the 1-year trailing returns for the major asset classes above, which I use for rebalancing. Note that I do not necessarily invest in all the listed asset classes, see my personal portfolio for more details.

Looks like nearly all asset classes are up from a year ago. Indeed, the US stock market is up over 30% from a year ago… find a guru or economist that predicted that! Over the past 10 years, the US stock market had an a 8.59% annualized return. The hyped “lost decade” looks a lot different once you simply move your timeframe a few years. The longer I invest, the less I pay attention to short-term market predictions from anyone.

[Read more…]

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Recent Investment Returns By Asset Class – August 2012

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

Now that our portfolio size has become more significant, I want to keep on top of things better while still avoiding most of the market noise. I took some ideas from how others share investment return data (see here and my 2011 year-end returns post) and will try each month to update the trailing total returns for the major asset classes that I find useful. I am using passive ETFs to track asset classes, as they represent “real” investments that you can buy and sell.

Asset Class
Representative ETF
Benchmark Index
1-Mo 1-Year 5-Year 10-Year
Broad US Stock Market
Vanguard Total Stock Market (VTI)
MSCI US Broad Market Index
2.52% 17.13% 1.77% 7.31%
Broad International Stock Market
Vanguard Total International Stock (VXUS)
MSCI All Country World ex USA Investable Market Index
2.74% -2.25% -4.01% 7.80%
Emerging Markets
Vanguard Emerging Markets ETF (VWO)
MSCI Emerging Markets Index
0.45% -6.18% -0.73 14.68
REIT (Real Estate)
Vanguard REIT ETF (VNQ)
MSCI US REIT Index
-0.10% 20.04% 3.92% 11.22%
Broad US Bond Market
Vanguard Total Bond Market ETF (BND)
Barclays U.S. Aggregate Float Adj. Bond Index
0.10% 5.90% 6.66% 5.46%
US Treasury Bonds – Short-Term
iShares 1-3 Year Treasury Bond ETF (SHY)
Barclays U.S. 1-3 Year Treasury Bond Index
0.00% 0.28% 2.82% 2.77%
US Treasury Bonds – Long-Term
iShares 20+ Year Treasury Bond ETF (TLT)
Barclays U.S. 20+ Year Treasury Bond Index
-1.31% 22.02%% 11.78% 8.54%
TIPS / Inflation-Linked Bonds
iShares TIPS Bond ETF (TIP)
Barclays U.S. TIPS Index
-0.31% 8.10% 7.96% n/a
Gold
SPDR Gold Shares (GLD)
Price of Gold Bullion
4.94% -7.60% 19.81% n/a

In addition, for relative comparison, I’ll update a chart each month comparing the 1-year trailing returns of the major asset classes. This should be useful in determining which areas I should be rebalancing my asset allocation. Instead of performance-chasing, I’ll be buying more of the worst-performing asset classes. Note that I do not necessarily invest in all the listed asset classes, see my personal portfolio for more details.

Listed are total returns (includes dividends and interest) as calculated by Morningstar as of 8/31/12. All periods longer than one year are annualized. NAV returns are listed except in the case of GLD, as there is not a significant premium/discount to NAV for the other ETFs and the NAV returns match the equivalent Vanguard mutual fund returns. In certain cases, I am using the long-term returns of the equivalent Vanguard mutual funds as Vanguard ETFs are simply a different share class of the mutual funds, share the same underlying investments (VXUS/VTIAX, VWO/VEIEX, VNQ/VGLSX, BND/VBLTX).

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.