Best and Worst Total Returns and Yield for Key Asset Categories

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 |  Includes: EEM, GLD, HYG, IWM, JNK, LQD, MDY, SDY, SPY, VWO
by: Richard Shaw

This table shows the best and worst three-month, one-year, and three-year total return, the trailing yield; and the three-year and five-year standard deviation, total return, and Sharpe Ratio, for each of nine important asset categories.

The nine categories are:

  • money markets (proxy VMMXX),
  • investment grade U.S. corporate bonds (proxy VFICX, similar to LQD),
  • below investment grade (junk) U.S. corporate bonds (proxy VWEHX, similar to HYG),
  • gold bullion (proxy GLD),
  • large-cap U.S. stocks (proxy SPY),
  • large-cap U.S. dividend stocks (proxy SDY),
  • mid-cap U.S. stocks (proxy MDY),
  • small-cap U.S. stocks (proxy IWM),
  • emerging market stocks (proxy VEIEX, same as VWO)

click image to enlarge

Click to enlarge

The best values are shaded in green. The second best values are shaded in tan. Third best values are shaded in gray.

While it is useful to be aware of and to consider past performance when thinking about asset categories, it is important to keep in mind that circumstances and cycles make the future vary from the past.

Shocks and surprises arising from government policy decisions can turn risk and return relationships on their heads. The frequency and severity of pushes and pulls from government policies seem to be more and more of a factor in investment outcomes.

Disclosure: We hold GLD, SPY, SDY, MDY, and IWM in some but not all managed accounts as of the publication date of this article.

Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice. You are responsible for your own investment decisions. This article is presented subject to our full disclaimer found on our site available here.






Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: Disclosure: We hold GLD, SPY, SDY, MDY, and IWM in some but not all managed accounts as of the publication date of this article.