Monday, January 14, 2013

10 Yr. Trailing S&P 500 and Mutual Fund Returns


The following data represents the average mutual fund returns for various asset classes and sectors over the last ten years for the period ending 12-31-12.  I read recently in the WSJ that the average returns for mutual funds are not accurate because the return data does not include mutual funds that were closed due to poor performance.  While I know the very few funds that fit this profile are not included in the data provided by Morningstar, it also works both ways.  Two mutual funds that I have personally owned for many years do not show up this data.  Had each of these funds been included in the data then it would have enhanced the returns even further.  For example, the Yacktman Focused Fund (YAFFX) was classified as a large cap value fund by Morningstar for almost the entire time period examined.  In early 2012 the classification changed to large cap blend as Donald Yacktman added some traditional large cap growth names to his fund.  This funds ten year average annual return for the time period examined was 10.94% which drastically outperforms the large cap value category average annual return of 6.36%.  The same can be said of the Oakmark International Fund (OAKIX).  It too was classified as a foreign large cap value fund for most of the past ten years.  Yet it is currently classified as a foreign large cap blend fund and is also not included in my data.  OAKIX achieved an average annual return of 11.22% for the ten year period examined which also easily outperformed the foreign large cap value return of 8.04% for the same period of time. 

In the end we are still viewing the average performance of thousands of mutual funds for a given time period.  Yes, some dogs are not included in the data, and some of the best managers of all-time are also not included in the data.  Enjoy the data for what it is and the story it is telling.  That story is that the S&P 500 and the broader markets have shown tremendous resilience throughout the last ten years.
                                                                         10Yr *          5Yr *          3Yr *         2012
S&P 500 Index Total Return
7.10%
1.66%
10.86%
16.00%
Asset Classes
Domestic Large Cap Value
6.36%
0.21%
8.90%
14.53%
Domestic Mid Cap Value
8.85%
2.99%
10.90%
16.43%
Domestic Small Cap Value
9.40%
4.22%
11.77%
16.16%
Foreign Large Cap Value
8.04%
-3.69%
3.11%
16.49%
Foreign Small/Mid Value
10.18%
-1.68%
6.84%
20.55%
Domestic Large Cap Growth
6.40%
0.78%
9.02%
15.26%
Domestic Mid Cap Growth
8.40%
1.25%
10.87%
13.89%
Domestic Small Cap Growth
8.43%
1.78%
11.49%
13.24%
Foreign Large Cap Growth
8.39%
-2.67%
5.53%
17.88%
Diversified Emerg Markets
15.22%
-1.87%
4.07%
18.06%
Gold & Precious Metals Equities
14.45%
4.81%
0.89%
-8.66%
Real Estate
11.42%
5.05%
16.99%
17.64%
Broad-Basket Commodities
5.77%
-3.83%
1.47%
-0.32%

 

Sectors
Technology
8.90%
2.18%
7.91%
13.19%
Consumer Discretionary
7.54%
5.53%
16.39%
21.76%
Financials
3.58%
-3.20%
5.96%
24.68%
Telecom
9.16%
-0.59%
9.69%
15.57%
Industrials
9.37%
2.32%
12.47%
19.13%
Utilities
10.14%
0.15%
8.97%
7.26%
Natural Resources
11.27%
-3.65%
2.01%
4.41%
Real Estate
11.42%
5.05%
16.99%
17.64%
Health Care
9.21%
5.96%
12.47%
21.46%
Energy
13.22%
-3.39%
3.59%
1.42%
Consumer Staples
9.36%
5.99%
12.91%
14.65%
* denotes average annual ret

 

Jon R. Orcutt is the founder of Allocation For Life, Author of The Allocation For Life Investment Newsletter, Author of "Master The Markets With Mutual Funds: A Common Sense Guide To Investing Success" and manager/creator of the AFL Models available to Allocation For Life subscribers at Folio Investing.