Is there a stock index that has a better long term rate of return than the S&P 500?

Answer 1

Wilshire 5000, Russell 2000

Answer 2

There might be. The future is uncertain and we will not really know until it becomes the past. The S&P 500 is based solely on U S companies. Not only U S companies but large U S companies. The U S may not be the place for future growth. It may be instead China for example so an index based on China may have a superior rate of return in the future.

The current long term rate of return of the S&P 500 is not anything to write home to mama about anyway. Last 5 years 1.88%, government bonds gave twice the rate of return during that period of time. That does not include dividends which would increase the rate of return to about 3.5% maybe.

One such index is the FTSE/Xinhua 25 index in which one can participate by purchasing FXI. 2005 return was 14.1%. So far in 2006 20.5%. Long term results are not available.

Another index that might outperform the S&P 500 is the SENSEX index of Indian stocks. Despite the recent collapse of the index it is still up 47% during the past year.

There are many others that could very well outperform the S&P 500.

Answer 3

Expected return is proportional to risk. Any broad index that is riskier than the S&P 500 will have a higher expected return.

It is hard to call this expected return 'better' since risk also increases. On a risk-adjusted basis, the two indices should have approximately the same return.

Answer 4

no longer something i understand of assure reliable returns. no longer banks, no longer shares, no longer bonds. the long term holder has a project approximately desirous to take a place his money and then ignore approximately it. He would not relate to his toddlers that way or his training or his marriage or his backyard. what variety of fool thinks he can basically unload his money down some magic hollow and it will strengthen? immediately's reliable inventory or industry or metallic or forex is the next day's canines. you need to continually watch your investment and circulate it as required. try this and the respond is different via fact the question will become "can an clever desperate guy or woman make reliable returns interior the inventory industry over the long term". the answer to that's certainly confident. Get a duplicate of "Come into My figuring out to purchase and merchandising Room" via Elder. that's a classic and not for each investor, even though it does make the factor which you're able to prevail in case you practice your self. basically like parenting and gardening, it takes artwork.

Answer 5

yes, plenty of them. For instance, smaller cap stocks have historically outperformed large cap stocks (with more risk, however). The s&P 500 is a large cap index, thus any of the smaller cap indexes will show higher returns over time than the s&P500.

Answer 6

Relative answer
.. :)
Depends where U buy them from
Now The Market Wants Up
NZ50
and the indians MRK are the best for next 4 months

http://filecargo.com/dw.php?id=1151757489&/msn_3_7_july_charts.zip

check the Link

Answer 7

Yes.

Top 3 Answerer in Business & Finance. (Vote for me)