Which stock market indexes are outperforming so far in 2020?
Today’s chart helps answer that question by presenting inflation-adjusted total returns for five major US stock market indexes.
The gray columns illustrate performance for the decade just past while the blue columns show 2020’s year-to-date performance.
It is quite evident that the Nasdaq 100 has significantly outperformed during this pandemic year.
Many of the companies included in the Nasdaq 100 were simply well-positioned to take on the challenges presented by this historic crisis.
On the other end of the spectrum, mid-caps (S&P 400) and small-caps (Russell 2000) have struggled.
What is a stock market index?
A stock market index is a group of stocks for which performance is measured to get a sense of the performance of a particular subset of the stock market.
What is the best-performing stock market index?
Of the major US stock market indexes, the Nasdaq 100 has outperformed over the past decade.
What do the major stock market indexes measure?
The Dow and S&P 500 measure the performance of large-cap stocks. The Nasdaq 100 also measures the performance of large-cap stocks but has a high concentration of technology companies. The S&P 400 measures the performance of mid-cap stocks and the Russell 2000 is a gauge for small-caps.
What is the oldest US stock market index?
The oldest US stock market index is the Dow Jones Industrial Average which began on May 26, 1896.