US total market index returns

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US total market index returns chronicles the annual returns of the US total stock market 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.


Total market index returns

The table below provides total market index returns.

Table.[3][4][5][6][7][8][9]


Indexes:CRSP US Total Market Index; Dow Jones U.S. Total Stock Market Index; Morningstar Total Market Index; MSCI Broad Market Index (1994-2014), MSCI USA Broad Market Index thereafter; Russell 3000 Index; S&P Total Market Index; Wilshire 5000 Index
(View Google Spreadsheet in browser, then File --> Download as to download the file.)

The table below indicates the start up dates for each index series. Some index providers include backdated data prior to the inception date of the index. These dates are also provided.

Index Inception Dates
Index Provider Inception Backdate data
Wilshire 1974 1971
Russell 1984 1984
Dow Jones 1991 1987
Morningstar 1998 1998
MSCI 2004 2004
S&P 2006 2006
CRSP 2012 2001

References

  1. Indexing in the 21st Century: Portfolio Solutions Inc.
  2. The case for indexing, Christopher B. Philips, Vanguard research, 2011, pp.13. Viewed January 21, 2015.
  3. CRSP Constituents and Returns
  4. SPDR semi-annual reports 2009-2006, Dow Jones Indexes search for historical returns 2006-2002
  5. Morningstar Market Barometer Ten-Year Recap 2000-2009 , Morningstar Periodic Table 2008-1999 , Morningstar Indexes Yearbook 2004 1998-1997, "Morningstar Indexes". http://corporate.morningstar.com/US/asp/subject.aspx?xmlfile=11.xml.
  6. Vanguard 2009-2006 , MSCI 10 Year Annual Returns 2005-2004 , "MSCI USA Equity Indices". https://www.msci.com/usa., performance tab for calculator Enable browser cookies, then Agree to Terms of Use (at page bottom). Provides 10 year historical performance against selected dates. Data source 2010 onwards:"MSCI USA Equity Indices". https://app2.msci.com/eqb/us/indexperf/dailyperf.html., performance tab for calculator
  7. Russell Index historical performance cycles 2009-2000 , Blackrock Periodic Table of Returns 2008-1989 (use google search: Blackrock twenty year periodic table) , Investor Insights: Growth vs. Value Russell 3000 Growth and Value Indices 2008-1979 , Russell index calculator
  8. Vanguard VA Performance 2006 forward
  9. Wilshire Returns Calculator 1991 forward

External links

Methodologies