The Historical Average Annual Returns of Australian Stock Market Since 1900

Australia is one of the top-performing equity market especially in the long run. As a developed country Australia offers many of the advantages of a typical developed market such as transparency and the rule of law.

Investors looking to diversify by holding international stocks should consider Aussie stocks. This is because not only they have one of the highest dividend yields in the world but also in the long run their performance is excellent.

Update(2/19/19): An earlier version of this chart incorrectly showed the average annual returns as 9.96%.

The following graphic shows the historical annual returns of Australian stocks from 1990 thru 2018:

Click to enlarge

 

Notes:

  • The returns shown above are total returns (i.e. share price returns + dividends).
  • The returns shown are in the local currency.
  • The returns are for the All Ordinaries Index.

Source: Australian Sharemarket – 117 Years of Historical Returns, MarketIndex.com.au

Since 1990, Aussie stocks have returned an average of 13.1% per year. A return of this magnitude is indeed great. In most of the years the market yielded positive returns.

Related ETF:

  • iShares MSCI Australia ETF (EWA)

Download: Australian Sharemarket – 119 Years of Historical Returns (in pdf)

Updates(10/18/18):

1)All Ordinaries Accumulation Index returns from 1900 to 2010:

Click to enlarge

Australia Stock Market Growth From 1876 To 2018:

 

Source: CuffeLinks

2) History of Australian Share Market From 1900 Thru 2010:

Source: Sapience

3. All Ordinaries Cycles from 1875 to 2007:

Click to enlarge

Source: Fusion Investing

4.Annual Real Return from Australian Stock Market by Decade from 1900:

Source: 10 years of investing in Australia, Allan Gray

Disclosure: No Positions

You may also like (Updated – 5/5/19):

  1. The Complete List of Australian ADRs 
  2. The Australian ASX Index Returns by Year
  3. Bear Markets in Australian Stocks since 1900
  4. Australian Stock Market Intra-Year Gains and Declines vs. Calendar Year Returns 2001 To 2017
  5. Real Total Returns From Stocks – Australia vs. USA Since 1900: Chart
  6. Australian Stocks: Dividend Contribution to Total Returns Since 1900
  7. Australian vs. Global Share Returns in 30 Years: Chart
  8. The Economy of Australia: Infographic
  9. Why Australia Is Attractive For Dividend Stock Investors

2 Comments

  1. Hi David, I have been looking at your article above while doing some research. The first 2 diagrams indicate that the return of the XAOA between 1900 and 2016 was 9.96%. I also happened upon the original chart at the Market Index website and found that the return on the same 2 charts indicated a return of 13.22%. Just wondering if you have any comment on the discrepancy. I realise that this article is over 18 months old now but still the facts are unclear.
    Location of the other charts if you are interested https://www.marketindex.com.au/sites/default/files/statistics/historical-returns-infographic-2016-updated.pdf
    Thanks, the article was interesting, though frustrating later due to the conflicting information.
    James

  2. James
    Thanks for pointing out the discrepancy.

    It looks like 13.22% is the correct average return based on the updated diagrams in the link you posted. I haven’t had the time to calculate and confirm the return.But you can do it simply by calculating the average for the years listed in the diagram.

    I looked at the updated diagram for 2019 with data upto 2018. That also shows 13.1% which is closer to 13.22% and last year’s return was negative for the Australian market. You can find the updated chart here:
    https://www.marketindex.com.au/sites/default/files/statistics/historical-returns-infographic-2018.pdf

    I will update my page with the corrected returns tomorrow. Hope this helps.

    -David

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