| Asset class | 4Q23 total return (%) |
YTD total return (%) |
YOY total return (%) |
Current trailing 12M P/E | 20-year average trailing 12M P/E1 | 20-year median trailing 12M P/E | Dividend yield (%) |
|---|---|---|---|---|---|---|---|
| U.S. Large Cap Equities | 11.69 | 26.29 | 26.29 | 22.94 | 18.37 | 17.94 | 1.49 |
| U.S. Mid Cap Equities | 12.82 | 17.23 | 17.23 | 22.17 | 21.77 | 21.07 | 1.65 |
| U.S. Small Cap Equities | 14.03 | 16.93 | 16.93 | 30.95 | 34.14 | 31.63 | 1.54 |
| Developed Market ex-U.S. Equities | 10.47 | 18.85 | 18.85 | 14.96 | 16.76 | 16.04 | 3.04 |
| Emerging Market Equities | 7.93 | 10.27 | 10.27 | 15.38 | 14.02 | 13.47 | 2.90 |
| Frontier Market Equities | 4.03 | 12.17 | 12.17 | 11.67 | — | — | 4.14 |
Sources: Bloomberg and Wells Fargo Investment Institute, as of December 31, 2023. YTD = year to date. YOY = year over year. P/E = price/earnings. 12M = 12 months. For illustrative purposes only. Large cap = S&P 500 Index. Mid cap = Russell Midcap Index. Small cap = Russell 2000 Index. Developed market Ex-U.S. = MSCI EAFE Index. Emerging market = MSCI Emerging Markets Index. Frontier market = MSCI Frontier Markets Index. The S&P 500 Index is a market capitalization-weighted index generally considered representative of the U.S. stock market. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index. The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index. MSCI EAFE (DM) and MSCI Emerging Markets (EM) indexes are equity indexes which capture large and mid cap representation across DMÂ countries (excluding Canada and the U.S.) and EM countries around the world. The MSCI Frontier Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of frontier markets. Yields and returns represent past performance and fluctuate with market conditions. Current yields may be higher or lower than those quoted. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.
1. March 2009 to June 2009 and September 2020 to April 2021 P/Es for U.S. Small Cap Equities have been removed due to their outlier condition.
Stock markets, especially foreign markets, are volatile. Stock values may fluctuate in response to general economic and market conditions, the prospects of individual companies, and industry sectors. Foreign investing has additional risks including those associated with currency fluctuation, political and economic instability, and different accounting standards. These risks are heightened in emerging and frontier markets. Mid- and small-cap stocks are generally more volatile, subject to greater risks and are less liquid than large company stocks.
Key Takeaways
- Equities performed well in all of 2023, as hopes of a soft landing proliferated, artificial intelligence optimism drove prices higher, and markets largely priced in a Fed pivot to cut rates in 2024.