The Periodic Table of Dow Jones Sector Returns (1992 – 2009)

August 30, 2010

I hadn’t realized that it had been over three years since I last updated this graphic. What the graphic below represents is a year-by-year ranking of the ten sectors that make up the Dow Jones Total Market Index along with returns for the Total Market Index and a Portfolio composed of equal weights of each of the ten sectors. The Portfolio is rebalanced annually. These returns are for the index and not for an actual mutual fund. In other words, no transaction fees or fund expenses are deducted from these returns.

In addition to the year-by-year rankings, I also included rankings for the average annual return for each sector over the entire 18-year period. I think it’s interesting that even with the internet bubble and the housing and credit crisis, the Portolio still returned 9.08% per year. That performance put it in third place. The Lehman Aggregate Bond Fund, which appears on the Callan Periodic Table of Investment Returns, averaged 6.43% return from 1992 – 2009. That would have put it second from the bottom in the rankings (between Utililities and Telecommunications).

The numbers are a lot worse than they were in 2006. See for yourself: A Look at the Dow Jones Total Market Index Sector Performance.

2 responses to The Periodic Table of Dow Jones Sector Returns (1992 – 2009)

  1. I guess the moral of this story is to own everything because there is no way anyone could predict the top performing sector from year to year.

  2. Ouch, the “Best” sector in 2008 was HealthCare with a -22% return.