Did your portfolio make 21% in ‘21?
As you begin to receive your 2021 annual reports & statements, one of the questions you should be asking yourself is, “how did I perform in 2021?”
Understanding your rate of return is important so up can compare how you stacked up against the global equity markets. By looking at four global indices:
- S&P 500 (USA)
- S&P TSX (Canada)
- MSCI EAFE (Europe, Australasia, & Far East)
- MSCI Emerging Markets (China, Russia, Brazil, India, etc.)
We can see their 2021 performance as follows.
2021 Index Returns
Source: https://ycharts.com/
Performance
The US market led the way in 2021 with a stellar 28.71% performance.
Canada followed closely behind with a 25.09% rate of return.
Europe/Australasia had a good year finishing up 11.78%.
While Emerging Markets had a rough year posting a -2.22% rate of return.
Key takeaway
So, what is the takeaway? What can you deduce from this information?
If you had created a diversified portfolio across these indices, such as the Vanguard All-Equity Portfolio, you would have earned 21% in 2021.
2021 VEQT Returns
Did you make 21% in ’21?
So, if your investments returned 21% in ‘21, great! If they were nowhere near this number, you should figure out why.
There could be multiple reasons, but I would start by asking your advisor. If they do not give you a clear answer, fire your statement off to us, and we will be able to tell you where you could make improvements moving forward.
Happy 2022 Investing!
