Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

1 March 2026

Home / 441

Morningstar asset class performance, 2021 and historical

The start of a new year is a good time to review portfolio performance and consider long-term settings for a financial future.

This article breaks Morningstar reporting into five tables to show market performance over all time periods to 30 years, as well as measures of risk and drawdowns. The chart on long-term performance shows Australian equities and listed property doing best since 1989. 

Table 1: Asset class performance from 1 month to 30 years

Table 2: Standard deviation (a measure of risk) by asset class

Table 3: Historical 1-year returns

Table 4: Historical 5-year returns

Table 5: Historical drawdown (market falls)

Tables sourced from Morningstar Adviser Research Centre.

Chart

Source: Morningstar Adviser Research Centre.

 

Access data and research on over 40,000 securities through Morningstar Investor, as well as a portfolio manager integrated with Australia’s leading portfolio tracking service, Sharesight. Sign up to a free, four week trial below:

Try Morningstar Investor for free

 

  •   12 January 2022
  • 5
  •      
  •   
5 Comments
John
January 13, 2022

The chart included (showing relative performance of asset classes) is in a format that I have long considered poor because it is easily manipulated by merely changing the start date. My other criticism is that there is virtually no investor that has that exact experience.

Instead, I suggest an alternative.

Instead of starting with a dollar investment, some time in the past, instead produce a graph that has today as its end date, with each of the asset classes ending up with $100 invested, and the line of the graph says for each date on the horizontal axis, how much money would need to be invested to end up with the $100.

The highest performing asset class would in this graph be the one with the lowest amount of initial investment. The big advantage of this graph would be that any investor could select a start date, and see how much they needed to invest at that start date, in that asset class to end up with $100 now. You could see what proportion of investment dates (finishing today) would produce negative returns, and what proportion positive (or you could make a good guess along those lines)

Dudley
January 13, 2022

"with each of the asset classes ending up with $100 invested":

Better; then only need to time travel to make guaranteed outcome investments.

Tomorrow's race results are best.

Alexander Stitt
January 15, 2022

Wholeheartedly agree with John, that showing a common end point allows a much better understanding of where past performance differentials have arisen and overcomes the problem in the choice of start date; and I've long though this. A quick look at how different the results would be on the existing chart if the start date was 2006 vs 2009 easily illustrates the point. Maybe such a chart requires a bit more work from the user to comprehend, but is, in effect, just the tables of "past 1 years performance", "past 3 years performance", "past 10 years performance" put into a common chart with all time intervals on display all the way back to the chart start, not just the arbitrary "1 year", "3 year" "10 year" etc. observations.

I suspect Dudley, in his comment, did not fully understand what John was proposing.

Dudley
January 15, 2022

Been presenting semi-log cumulative total value normalised to 1 at current date for years.
More clearly shows relative growth rates.
Does not predict future.

D Ramsay
January 15, 2022

Could we please also get the modal values (i.e. mode = the most common score) into the Historical 1 and 5 -year returns into those tables please as it would give a perspective of how Normalized or Skewed the distribution is.

 

Leave a Comment:

RELATED ARTICLES

Diversification is not a free lunch

Firstlinks is sponsored by:
banner

Most viewed in recent weeks

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

Making sense of record high markets as the world catches fire

The post-World War Two economic system is unravelling, leading to huge shifts in currency, bond and commodity markets, yet stocks seem oblivious to the chaos. This looks to history as a guide for what’s next.

3 ways to fix Australia’s affordability crisis

Our cost-of-living pressures go beyond the RBA: surging house prices, excessive migration, and expanding government programs, including the NDIS, are fuelling inflation, demanding bold, structural solutions.

Is there a better way to reform the CGT discount?

The capital gains tax discount is under review, but debate should go beyond its size. Its original purpose, design flaws and distortions suggest Australia could adopt a better, more targeted approach.

How cutting the CGT discount could help rebalance housing market

A more rational taxation system that supports home ownership but discourages asset speculation could provide greater financial support to first home buyers.

Welcome to Firstlinks Edition 648 with weekend update

This is my last edition as Editor of Firstlinks. I’m moving onto a new role though the newsletter will remain in good hands until my permanent replacement is found.

  • 5 February 2026

Latest Updates

Property

The 5% deposit scheme is bad for homeowners and Australia

An ‘affordability’ scheme making the county more vulnerable to economic shocks and contributing to the deteriorating financial situation of everyday Australians.

Investment strategies

Is defensive the new offensive?

Relatively boring, unglamorous, defensive stocks like Kroger and Allstate have quietly outperformed gilded tech giants, offering steady growth, visibility, and resilient returns in a market captivated by AI and flashier industries.

Shares

How the RBA scores on its inflation goal

The Reserve Bank continues to face criticism from all sides. A reminder of the RBA's mandate and a review of their track record in maintaining price stability since the early 1990s.

Investment strategies

Levered credit: A late cycle ingredient for drawdown pain

As credit spreads normalised through 2025, yield‑hungry investors have turned to leverage for high returns, uncomfortably echoing pre‑GFC behaviours. Investors need to be careful to understand the true risk‑return trade‑off.

Planning

The more things change… longevity just goes on increasing

Australia needs a major shift in longevity awareness, attitudes and behaviour if, as a community, we are to reap the benefits of increasing longevity. Adopting a national strategy is well overdue.

Property

The improving outlook of Australian commercial real estate

The sector is positioned to benefit from defensive and resilient income streams supported by embedded rental increase opportunities. 

Property

Seize hidden opportunities among 50+ home buyer schemes in Australia

There is a laundry list of government schemes to help Australian's struggling with housing affordability. Savvy buyers should take advantage to break into the property market.

Sponsors

Alliances

Site Map

About Firstlinks

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.