Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

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


 

5 Comments
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.

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.

 

Leave a Comment:

RELATED ARTICLES

Diversification is not a free lunch

banner

Most viewed in recent weeks

Howard Marks: the investing game has changed

The famed investor says the rapid switch from globalisation to trade wars is the biggest upheaval in the investing environment since World War Two. And a new world requires a different investment approach.

Welcome to Firstlinks Edition 605 with weekend update

Trump's tariffs and China's retaliatory strike have sent the Nasdaq into a bear market with the S&P 500 not far behind. What are the implications for the economy and markets, and what should investors do now? 

  • 3 April 2025

Pros and cons of Labor's home batteries scheme

Labor has announced a $2.3 billion Cheaper Home Batteries Program, aimed at slashing the cost of home batteries. The goal is to turbocharge battery uptake, though practical difficulties may prevent that happening.

Designing a life, with money to spare

Are you living your life by default or by design? It strikes me that many people are doing the former and living according to others’ expectations of them, leading to poor choices including with their finances.

World's largest asset manager wants to revolutionise your portfolio

Larry Fink is one of the smartest people in the finance industry. In his latest shareholder letter, the Blackrock CEO outlines his quest to become the biggest player in private assets and upend investor portfolios.

4 ways to take advantage of the market turmoil

Every crisis throws up opportunities. Here are ideas to capitalise on this one, including ‘overbalancing’ your portfolio in stocks, buying heavily discounted LICs, and cherry picking bombed out sectors like oil and gas.

Latest Updates

Investment strategies

An enlightened dividend path

While many chase high yields, true investment power lies in companies that steadily grow dividends. This strategy, rooted in patience and discipline, quietly compounds wealth and anchors investors through market turbulence.

Investment strategies

Don't let Trump derail your wealth creation plans

If you want to build wealth over the long-term, trying to guess the stock market's next move is generally a bad idea. In a month where this might be more tempting than ever, here is what you should focus on instead.

Economics

Pros and cons of Labor's home batteries scheme

Labor has announced a $2.3 billion Cheaper Home Batteries Program, aimed at slashing the cost of home batteries. The goal is to turbocharge battery uptake, though practical difficulties may prevent that happening.

Investment strategies

Will China's EV boom end in tears?

China's EV dominance is reshaping global auto markets - but with soaring tariffs, overcapacity, and rising scrutiny, the industry’s meteoric rise may face a turbulent road ahead. Can China maintain its lead - or will it stall?

Investment strategies

REITs: a haven in a Trumpian world?

Equity markets have been lashed by Trump's tariff policies, yet REITs have outperformed. Not only are they largely unaffected by tariffs, but they offer a unique combination of growth, sound fundamentals, and value.

Shares

Why Europe is back on the global investor map

European equities are surging ahead of the U.S this year, driven by strong earnings, undervaluation, and fiscal stimulus. With quality founder-led firms and a strengthening Euro, Europe may be the next global investment hotspot.

Chalmers' disingenuous budget claims

The Treasurer often touts a $207 billion improvement in Australia's financial position. A deeper look at the numbers reveals something less impressive, caused far more by commodity price surprises than policy.

Fixed interest

Duration: Friend or foe in a defensive allocation?

Duration is back. After years in the doghouse, shifting markets and higher yields are restoring its role as a reliable diversifier and income source - offering defensive strength in today’s uncertain environment.

Sponsors

Alliances

© 2025 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.