| The following table shows the returns for
major asset classes since 1973. Investors can use this data
is to determine the relative risk and return characteristics
of the asset classes.
|
Year |
Short
Term
Bonds |
Long
Term
Bonds |
S&P
500 |
U.S.
Large
Value |
6-10
Small
Blend |
6-10
Small
Value |
EAFE |
Int'l
Large
Value |
|
1973
|
6.3
|
-1.1
|
-14.7
|
-1.6
|
-39.0
|
-26.0
|
-14.9
|
-14.9
|
|
1974
|
9.4
|
4.4
|
-26.5
|
-21.9
|
-28.7
|
-18.1
|
-23.2
|
-23.2
|
|
1975
|
7.5
|
9.2
|
37.2
|
50.5
|
65.7
|
54.5
|
35.4
|
49.7
|
|
1976
|
13.2
|
16.8
|
23.9
|
47.7
|
51.1
|
53.6
|
2.5
|
6.7
|
|
1977
|
2.2
|
-0.7
|
-7.2
|
-2.2
|
26.8
|
21.8
|
18.0
|
33.2
|
|
1978
|
5.5
|
-1.2
|
6.6
|
6.9
|
25.8
|
21.8
|
32.6
|
42.2
|
|
1979
|
10.7
|
-1.2
|
18.4
|
25.9
|
43.2
|
38.0
|
4.8
|
4.4
|
|
1980
|
8.0
|
-4.0
|
32.4
|
18.8
|
41.9
|
29.1
|
22.6
|
18.0
|
|
1981
|
21.7
|
1.9
|
-4.9
|
9.3
|
-2.7
|
10.5
|
-2.3
|
13.6
|
|
1982
|
31.3
|
40.4
|
21.4
|
23.9
|
28.0
|
37.7
|
-1.9
|
2.5
|
|
1983
|
7.2
|
0.7
|
22.5
|
30.9
|
39.7
|
44.2
|
23.7
|
31.5
|
|
1984
|
9.1
|
15.5
|
6.3
|
12.0
|
-6.7
|
5.1
|
7.4
|
7.6
|
|
1985
|
23.5
|
31.0
|
32.2
|
29.9
|
24.7
|
34.7
|
56.2
|
67.3
|
|
1986
|
17.0
|
24.5
|
18.5
|
18.4
|
6.9
|
16.9
|
69.4
|
70.2
|
|
1987
|
3.3
|
-2.7
|
5.2
|
6.7
|
-9.3
|
-6.3
|
24.6
|
31.2
|
|
1988
|
6.3
|
9.7
|
16.8
|
26.8
|
22.9
|
28.8
|
28.3
|
33.5
|
|
1989
|
9.5
|
18.1
|
31.5
|
25.5
|
10.2
|
19.7
|
10.5
|
24.7
|
|
1990
|
10.8
|
6.2
|
-3.2
|
-22.1
|
-21.6
|
-20.8
|
-23.4
|
-15.6
|
|
1991
|
14.6
|
19.3
|
30.1
|
34.4
|
44.6
|
39.4
|
15.9
|
12.3
|
|
1992
|
7.3
|
9.4
|
7.3
|
26.3
|
23.4
|
29.9
|
-13.1
|
-3.1
|
|
1993
|
8.3
|
18.2
|
9.6
|
20.4
|
21.0
|
25.8
|
25.9
|
47.2
|
|
1994
|
-3.2
|
-7.8
|
1.3
|
-4.5
|
3.1
|
1.2
|
5.3
|
8.8
|
|
1995
|
9.6
|
31.7
|
37.1
|
38.4
|
34.5
|
29.3
|
13.1
|
11.5
|
|
1996
|
6.6
|
-0.9
|
22.6
|
20.2
|
17.6
|
22.3
|
6.3
|
7.8
|
|
1997
|
6.4
|
15.9
|
33.1
|
28.1
|
22.8
|
30.8
|
5.5
|
-3.1
|
|
1998
|
5.4
|
13.1
|
28.7
|
12.0
|
-5.5
|
-7.3
|
20.3
|
14.9
|
|
Annual
Return
|
9.7
|
9.6
|
13.5
|
16.3
|
13.0
|
17.7
|
12.2
|
16.3
|
|
Annual Risk*
|
7.1
|
12.4
|
17.0
|
18.1
|
23.5
|
21.9
|
21.9
|
23.7
|
Asset Classes
The primary asset classes (and their corresponding indexes)
used to construct globally-diversified asset class portfolios
are:
| Asset Class |
Index Used |
| Short-term bonds |
DFA Five-Year Gov't Bond |
| S&P 500 |
S&P 500 index |
| U.S. Large Value |
DFA U.S. Large Cap Value index |
| 6-10 Small Blend |
DFA U.S. 6-10 Small Co. index |
| 6-10 Small Value |
DFA U.S. 6-10 Value index |
| EAFE |
MS EAFE index |
| Int'l Large Value |
DFA International Value index |
EAFE returns were substituted for Int'l Large Value in
1973 and 1974 for lack of data.
We utilize the returns data for the Dimensional Fund Advisors
(DFA) indexes because we believe they best represent each
asset class and we receive the data on a monthly basis.
We are not promoting or recommending particular DFA, Vanguard,
or other mutual funds. |
