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Why Market Cap Matters
Historically, stock benchmarks representing small-cap, midcap, and large-cap companies have taken turns leading the market. This chart ranks them in order of performance from first place to third in each of the past 10 years.
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S&P 500 Sector Ranks -- 2010 to 2024
This table illustrates that no one sector of the S&P 500 has consistently dominated the index in terms of its performance. Some sectors, like Information Technology, have tended to have more extreme swings, performing near the top of the index or near the bottom of the index in many years. Others, like Consumer Discretionary, have tended to finish many years in the middle of the pack.
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Assets Take Turns as Top Performers
According to the performance of the relevant market indexes, no asset class consistently outperformed the others over the 10-year period ended December 31, 2024. Any given index could be the strongest performer in one year and the poorest in another.
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Comparative Performance of Stocks and Bonds (Trailing 12-Month Periods)
This chart shows how indexes representing stock and bond performance have outperformed each other at different times during the past 30 years.
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Average 12-Month Returns for Six Asset Classes
This chart compares the average 12-month performance of indexes representing six common asset classes during the past 30 years.
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Risk and Return of Single-Asset and Mixed Portfolios Since 1926
This chart compares the risk and return potential associated with investing in stocks or bonds versus investing in portfolios that combine the two asset classes, for the period from January 1, 1926, through March 31, 2025. Based on the performance of the indexes that represent those asset classes, a portfolio that blended both might have had a stronger risk-adjusted return than a portfolio that was composed entirely of one or the other.
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Risk and Return of Single-Asset and Mixed Portfolios, Past 10 Years
This chart compares the risk and return potential associated with investing in a single asset class versus investing in portfolios that combine two asset classes, for the period from April 1, 2015, through March 31, 2025. Based on the performance of the indexes that represent those asset classes, a portfolio that blended both might have had a stronger risk-adjusted return than a portfolio that was composed entirely of one or the other.
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Risk and Return of Single-Asset and Mixed Portfolios, Past 30 Years
This chart compares the risk and return potential associated with investing in stocks or bonds versus investing in portfolios that combine the two asset classes, for the period from April 1, 1995, through March 31, 2025. Based on the performance of the indexes that represent those asset classes, a portfolio that blended both might have had a stronger risk-adjusted return than a portfolio that was composed entirely of one or the other.
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Risk and Return of Single-Asset and Mixed Portfolios, Past 50 Years
This chart compares the risk and return potential associated with investing in stocks or bonds versus investing in portfolios that combine the two asset classes, for the period from April 1, 1975, through March 31, 2025. Based on the performance of the indexes that represent those asset classes, a portfolio that blended both might have had a stronger risk-adjusted return than a portfolio that was composed entirely of one or the other.
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