Sunday, February 22, 2015

Historical Returns for the S&P 400 Midcap Index (Updated Through 2014)

The S&P 400 Midcap Index was introduced in June 1991 and is the most widely-followed U.S. Midcap stock market index.  I have previously posted charts with annual returns through 2007, 2008, 2009, 2010, 2011, and 2012. The chart below shows calendar-year returns between 1992 and 2014 (click on the chart for a larger view).  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 below, the S&P 400 Midcap Index returned about 9.77% in 2014, which was a decent return, albeit much smaller than the massive 33.50% return during 2013.  The annualized return of the Index from 1992-2014 was about 12.09%, the 5-year annualized return through 2014 was about 16.54%, the 10-year annualized return through 2014 were about 9.71%, and the 15-year annualized return were about 9.65%. The total return (including reinvested dividends) between December 31, 1991 and December 31, 2014 was about 1,281.70%.

I 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.

No comments: