Happy new year! We hope everyone had a wonderful 2021 and we are really looking forward to a happy, healthy, and prosperous 2022 for you and your families.
As this is the last monthly index total return comparison for 2021, the bullet points below are more focused on annual returns.
- All indexes shown had positive, double digit returns in 2021 except for emerging markets, which declined by -2.5% for the year.
- Some stats related to the S&P 500 for the year:
- it jumped 28.7% in 2021, which followed gains of 18.4% in 2020 and 31.5% in 2019
- its 3-year annualized return is now an astounding 26.1%
- it hit 70 new highs during 2021
- US REITs had the highest equity returns for the year, returning 45.9%. Global REITS were also a top performer earning a 35.0% return
- Large growth gained 27.6% while small value earned a slightly larger 28.3%
In Fixed Income:
- Fixed income returns were very mixed in 2021
- Munis (across the curve), inflation protected securities and high yield saw positive returns
- Treasuries, corporates, and non-US bonds were largely negative returning
- 10+ Year Treasuries lost -4.6% for the year. As a reference point, the 10 Year Treasury at the start of 2021 was 0.93% and rose to 1.52% at year end.
- ST TIPS gained 5.5%, even outpacing high yield's 5.3%
As always, please let us know if you have any questions at firstname.lastname@example.org.
As an additional note, please keep in mind that these reflect historical performance of the current models, not necessarily how accounts were invested in the past.