Friday, June 29, 2012

Historical Returns for the S&P 400 Midcap Index (Updated Through 2011)

The S&P 400 Midcap Index is the most widely-followed of all U.S. Midcap stock market indices.  This index was first introduced in June 1991.  I have previously posted charts with annual returns through 2007, 2008, 2009, and 2010. The chart below has been updated to include returns from 1992-2011.  The chart below also shows five-year annualized returns, starting with the fifth full calendar year of the existence of the S&P 400 Midcap Index (i.e., 1996),  ten-year annualized returns, and fifteen-year annualized returns.

As shown, the S&P 400 Midcap Index closed down slightly in 2011, dropping about 1.73%.  The annualized returns of the Index from 1992-2011 were about 10.96%, the 5-year annualized returns through 2011 were about 3.32%, the 10-year annualized returns through 2011 were about 7.04%, and the 15-year annualized returns were about 9.98%. The total returns (including reinvested dividends) between December 31, 1991 and December 31, 2011 were an impressive 699.85%.

As I have mentioned in previous years, I am a big fan of midcap stocks and recommend that any long-term investor seriously consider investing money in midcap stocks, such as those tracking the S&P 400 Midcap Index (e.g., the Midcap SPDR ETF (symbol: MDY) tracks the S&P 400 Midcap Index). Midcaps tend to provide higher returns over time than large cap stocks, such as those comprising the S&P 500 Index, although such stocks are generally more volatile over shorter time periods.

 I have posted an updated chart for the period between 1992-2014.

No comments: