US index returns - 2010

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US index returns - 2010 chronicles the annual returns of US stocks as measured by stock indexes.

Fig.1. Index Strategy Box[1]

The growing proliferation of indexes from index providers, along with a corresponding growing number of index funds and exchange-traded funds (ETFs), creates a number of issues for investors, since the index returns of the different providers result in a dispersion of both yearly and multi-period returns. Dispersion of returns is not as considerable an issue with total market indexes, but as we go into style and smaller size indexes, dispersion of return increases in magnitude. These return differences are mainly due to the differing methodologies index providers utilize in constructing their indexes. Different benchmarks cover varying ranges of stocks, have different selection criteria for growth versus value, and are even maintained and rebalanced differently.[2]

Each index provider's suite of index funds occupies the highlighted segment of the Index Strategy Box.


Index returns

Table 1. Returns December 31,2010. [3] [4] [5] [6] [7] [8] [9][note 1]
Index Dow Jones Morningstar MSCI Russell S&P Wilshire Average Dispersion
Total Market 17.49% 16.80% 17.28% 16.93% 17.30% 17.16% 17.16% 0.69%
Completion 28.62% - - 28.64% 27.46% 28.43% 28.29% 1.18%
Large Blend 16.07% 13.44% 15.92% 16.10% 15.05% - 15.32% 2.66%
Large Value 15.16% 14.69% 14.54% 15.51% 15.08% - 15.00% 0.97%
Large Growth 17.03% 12.91% 17.23% 16.71% 15.10% - 15.80% 4.32%
Mid Blend 25.39% 24.92% 25.69% 25.48% 26.69% - 25.63% 1.77%
Mid Value 21.88% 20.61% 21.26% 26.38% 22.78% - 22.58% 5.77%
Mid Growth 28.21% 27.67% 29.24% 24.75% 30.57% - 28.09% 5.82%
Small Blend 28.61% 28.37% 27.82% 26.86% 26.31% - 27.59% 2.30%
Small Value 24.98% 25.96% 25.01% 24.50% 24.72% - 25.03% 1.46%
Small Growth 31.97% 31.26% 30.71% 29.09% 27.99% - 30.20% 3.98%


(View Google Spreadsheet in browser, then File --> Download as to download the file.)


Notes

  1. The index returns documented in the table above, are the returns for the following set of indices:
    Table 2. Indices
    Dow Jones Morningstar MSCI Russell S&P Wilshire
    DJ US Total Market Morningstar US Market MSCI Broad Market Russell 3000 S&P Total Market Wilshire 5000
    DJ US Total Market Completion Russell Small Cap Completeness S&P Completion Wilshire 4500
    DJ US Total Market Large Morningstar Large MSCI Prime 750 Russell 1000 S&P 500
    DJ US Total Market Large Value Morningstar Large Value MSCI Prime 750 Value Russell 1000 Value S&P 500 Value
    DJ US Total Market Large Growth Morningstar Large Growth MSCI Prime 750 Growth Russell 1000 Growth S&P 500 Growth
    DJ US Total Market Mid Morningstar Mid MSCI Mid 450 Russell Mid S&P 400
    DJ US Total Market Mid Value Morningstar Mid Value MSCI Mid 450 Value Russell Mid Value S&P 400 Value
    DJ US Total Market Mid Growth Morningstar Mid Growth MSCI Mid 450 Growth Russell Mid Growth S&P 400 Growth
    DJ US Total Market Small Morningstar Small MSCI Small 1750 Russell 2000 S&P 600
    DJ US Total Market Small Value Morningstar Small Value MSCI Small 1750 Value Russell 2000 Value S&P 600 Value
    DJ US Total Market Small Growth Morningstar Small Growth MSCI Small 1750 Growth Russell 2000 Growth S&P 600 Growth

References

External links

Methodologies