Sentences with phrase «poor aggregate return»

Can commodities still be useful for portfolio diversification, despite their recent poor aggregate return, high volatility and elevated return correlations with other asset classes?

Not exact matches

The current standard for poor bond market performance is 1994 when the Barclays Aggregate Bond Index fell 2.92 percent — its worst return in the past 34 years.

The Standard & Poor's 500 Index of stocks gained 2.9 percent annually while the Barclays U.S. Aggregate bond index saw annualized returns of 5.8 percent.

Since index funds simply buy the stocks or bonds that make up indexes like the Standard & Poor's 500 or Barclays U.S. Aggregate bond index rather than spend millions on costly research and manpower to identify which securities might perform best, they're able to pass those savings along to shareholders in the form of lower annual fees, which translates to higher returns and more wealth over the long term.

This dual poor performance mostly explains why the aggregate returns for individual investors (as shown in the JP Morgan graph above) is so far below the returns for most investment asset classes.

So investors expect returns to closely mimic those of market gauges like Standard & Poor's 500 - stock index or the Barclays Capital (formerly Lehman) U.S. Aggregate Bond Index.