S&P 500 Annual Total Returns From 1928 To 2019: Chart

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The S&P had one of the spectacular returns in 2019. The index shot by nearly 31% on price only basis. With dividends reinvested, the total return was 33%.  This return was the best return in the 30 to 40% range since 1928.

The following chart shows the annual total return of the S&P since 1928:

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Source: “Buy-and-Hold” Has Historically Been a Winning Investment Strategy by U.S. Global Investors

The S&P has positive returns in nearly three-fourths of the time period.

Related ETFs:

  •  SPDR S&P 500 ETF Trust (SPY)

Disclosure: No Positions

S&P 500 Index Related Articles:

  1. The Complete List of Constituents of the S&P 500 Index
  2. On The Evolution Of The S&P 500 Since Inception
  3. S&P 500 Calendar Year Returns vs. Intra-Year Returns: Chart
  4. S&P 500 Annual Total Returns From 1928 To 2019: Chart
  5. The S&P 500 Dividend Yield is at a 20-Year Low
  6. The Top 30 Stocks in the S&P 500 over the Past 30 Years
  7. Contribution of Price Appreciation and Dividends to the S&P 500 Total Return by Decade
  8. The Average Company Lifespan in the S&P 500 Index is Falling
  9. Gold vs. S&P 500 Long-Term Returns: Chart
  10. How Much Dividends Contribute to S&P 500’s Total Return
  11. Intra-Year Declines of S&P 500 Index Since 1948

The Top 10 Growing Domestic Brands in China: Chart

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The economy of China is increasingly becoming a domestic consumption oriented economy form an export-driven economy. As a result, consumption is booming and Chinese firms are focusing more on the local market than the overseas markets. By producing goods that most people can afford they are also taking market share from foreign multi-national firms. Hence Western companies are losing their market share and are no longer the preferred brand of Chinese consumers.

The following chart shows the change in the top 10 brands in China in 2018 relative to 2017:

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Source: China’s dominance is about more than demographics, Money Observer

The implication of this shift among Chinese consumers is huge for foreign firms with substantial investments in the country. They can longer take Chinese consumers fro granted and have to work harder to compete and gain their businesses.

How Much Dividends Contribute to S&P 500’s Total Return

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The importance of dividends to a well-diversified portfolio cannot be understated. In fact, dividends account for a significant portion of the overall total return of the S&P over the long term. Though the current yield on the S&P is around 2%, the power of compounding and divided growth over time leads to a higher contribution to the total return.

According to an article at S&P by Kieran Kirwan dividends accounted for 33% of the total return of S&P 500 since 1960 as shown in the chart below:

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Source: The Rising Importance of Dividends When Earnings Slow, S&P

The contribution of dividends to total return varies over different periods. For instance, during the 1970s dividends amounted to nearly 73% of the total return but during the dot com era of the 1990s it declined to 16%.

Key Takeaway:

Investors should not ignore dividends even if they are low such as the current 2% or so. Unlike price appreciation, dividends are usually stable and predictable for well established firms and many of them also increase dividend payments year after year. So investors can identify and own some of these dividend paying and dividend growing leaders.

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Related ETF:

  • SPDR S&P 500 ETF Trust (SPY)
  •  iShares Select Dividend ETF (DVY)
  • Vanguard High Dividend Yield ETF (VYM)
  • Vanguard Dividend Appreciation ETF (VIG)

Disclosure: No Positions

The Callan Periodic Table of Investment Returns From 2000 to 2019: Chart

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Callan has updated their popular “The Periodic Table of Investment Returns” with 2019 data. This chart shows the importance for diversification. For instance, U.S. large caps were the top performers in 2019 with a return of over 31%. Emerging markets which used to be hot a few years ago did not have such a great year. Emerging market equities earned just over 18% relative to the spectacular performance of American stocks. It should be noted however Russia was one of the top markets last year. However overall as a group emerging markets simply well underperformed US markets.

Other developed markets also earned lower returns than the US with the Developed excluding the US growing over 22%.

The Callan Periodic Table of Investment Returns From 2000 to 2019:

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Source:  Callan LLC

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Key Takeaway:

The importance and benefits of diversification cannot be understated. As the chart above shows, an investor overweight in emerging equities would have missed the substantial growth of US equities. Since it is impossible to predict which market and sector will outperform in any given year, the wise move is to allocate one’s assets across a wide range of sectors, countries and asset classes.

Past Callan Charts:

Related ETFs:

  • iShares Dow Jones Select Dividend ETF (DVY)
  • SPDR S&P Dividend ETF (SDY)
  • Vanguard Dividend Appreciation ETF (VIG)
  • SPDR S&P 400 Mid Cap Growth ETF (MDYG)
  • iShares Russell Midcap Index Fund (IWR)
  • iShares MSCI Emerging Markets Indx (EEM)
  • SPDR S&P 500 ETF (SPY)
  • Vanguard MSCI Emerging Markets ETF (VWO)
  • SPDR S&P 500 ETF (SPY)
  • SPDR KBW Bank ETF (KBE)
  • SPDR KBW Regional Banking ETF (KRE)
  • SPDR S&P 500 ETF (SPY)
  • Vanguard Dividend Appreciation ETF (VIG)
  • SPDR S&P Dividend ETF (SDY)
  • SPDR STOXX Europe 50 ETF (FEU)

Disclosure: No Positions

Emerging Markets Returns 2005 Thru 2019: Chart

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Emerging market equity returns vary wildly from one country to another. In addition, similar to developed markets, no country is the top performer in consecutive years. One year’s best performer can turn into next year’s worst performer. Novel Investor recently updated his returns chart for emerging markets. The following chart shows the equity returns of single country MSCI indices for emerging markets from 2005 thru 2019:

Click to enlarge

Credit: Novel Investor

Russia was the best performing market in 2019. In 2008, during the global financial crisis it was most negative return at nearly 74%. Last year the situation was reversed with Russia gaining over 53%. While Greece went into tailspin a few years ago in 2019 it was the second highest returning emerging market.

The colorful above chart also shows the importance of diversification. Within emerging markets, it is always wiser to distribute one’s assets across countries to reduce risk and increase potential gains.

Related ETFs:

  • Market Vectors Russia ETF (RSX)
  • iShares MSCI Mexico Capped Investable Market (EWW)
  • iShares FTSE/Xinhua China 25 Index (FXI)
  • The iShares MSCI India ETF  (INDA)
  • iShares MSCI Brazil Index (EWZ)
  • iShares MSCI All Peru Capped Index (EPU)
  • Global X FTSE Colombia 20 ETF (GXG)

Disclosure: No Positions