Which stock market indexes are outperforming in 2021?
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 from 2010 to 2020 while the blue columns show 2021’s performance.
The chart illustrates that the Russell 2000 and S&P 400 lead.
Investors are focused on the reopening of the economy.
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.