Creative Planning Periodic Table of Style Rotation
This style rotation table compares the returns of various indices. Fluctuations in market cycles demonstrate the importance of diversification. Diversification does not assure a profit nor does it protect against loss of principal. As with any investment, it is possible to lose money. The returns include dividend reinvestments but exclude the impact of management fees and trading costs. Past performance is no assurance of future performance.
Annual Returns for Selected Asset Classes
Large Cap Stocks are represented by the S&P 500 Index, which measures the performance of the large-cap segment of the U.S. equity universe.
Mid Cap Stocks are represented by the Russell Midcap Index, which measures the performance of the mid-cap segment of the U.S. equity universe.
Small Cap Stocks are represented by the Russell 2000 Index, which measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.
International Stocks are represented by the MSCI EAFE Index (Europe, Australasia, and Far East), which is a widely followed index of common stocks
from 22 developed market countries.
Emerging Markets are represented by the MSCI Emerging Markets Index, which measures the performance of stocks in emerging market countries.
Precious Metals is represented by the MSCI World/Metals & Mining (TR Net) Index which measures the performance of U.S. stocks of companies engaged in the exploration and production of gold, silver and platinum-group metals. At Creative, we do not recommend precious metals as an
investment. The asset class has historically delivered the worst of both worlds: high volatility and very low returns. No thanks. We include this asset class on the Creative Planning Periodic Table only because it is a major asset class and often covered by the media and discussed with clients.
Bonds are represented by the Bloomberg U.S. Aggregate Bond Index, which covers the USD-denominated, investment-grade, fixed-rate, taxable bond market. The index includes government and corporate securities, mortgage-backed securities, and asset-backed securities, with
maturities of at least one year.
Real Estate is represented by the Dow Jones U.S. Select REIT Index, which measures the performance of U.S. publicly traded Real Estate Investment Trusts. An ETF or mutual fund’s portfolio may differ significantly from the securities held in the indices. These indices are not available for direct
investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
*As of 3/31/2023