Relative Performance Key Stock & Bond Categories: 3mo,1yr, 5yr,13yr

This shows the performance of total US stocks (VTSMX), developed markets stocks (VDMIX), emerging market stocks (VEIEX), and investment grade corporate bonds with short-term (VFSTX) , intermediate-term (VFICX) and long-term maturities (VWESX) over 13 years, 5 years, 1 year and 3 months.

We used Vanguard mutual funds in order to capture the 13 year period.

Each fund is divided by the performance of VTSMX (the total US stock market) to produce the relative performance.  The solid black line at the 0% level is VTSMX/VTSMX.

US stocks have been the clear winner over 1 year and 3 months.

Over 5 years, short-term investment grade corporate bonds performed about the same as total US stocks; developed market and emerging market stocks underperformed; and intermediate-term and long-term investment corporate bonds outperformed.

Over 13 years, short-term investment grade corporate bonds roughly equaled the performance of total US stocks; developed markets underperformed; and the other categories outperformed, but with lots of relative volatility.

Past performance of bonds was mostly due to price appreciation caused by declining interest rates.  When rates rise, the appreciation is expected to be reversed, and outstanding bonds would experience price declines.

6KeyCategories-3mo 6KeyCategories-1yr 6KeyCategories-6yrs 6KeyCategories-13yrs

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