### A Look Back at Index Returns

- S&P 500 Index
- S&P 500/BARRA Growth Index
- S&P 500/BARRA Value Index
- Russell 2000 Index
- Russell 2000 Growth Index
- Russell 2000 Value Index
- MSCI EAFE Index (International Index)
- Lehman Brothers Aggregate Bond Index

Index | Average Annual ROR |

S&P 500 Index | 13.22% |

S&P 500/BARRA Growth Index | 12.84% |

S&P 500/BARRA Value Index | 13.16% |

Russell 2000 Index | 11.54% |

Russell 2000 Growth Index | 8.59% |

Russell 2000 Value Index | 13.50% |

MSCI EAFE Index | 11.44% |

Lehman Brothers Aggregate Bond Index | 8.84% |

Here is a table showing the performance of a portfolio of $10,000 invested equally in each of the indexes (rebalanced annually) over the last 20 years:

Index | Ending Value |

S&P 500 Index | $12,187 |

S&P 500/BARRA Growth Index | $11,665 |

S&P 500/BARRA Value Index | $12,718 |

Russell 2000 Index | $13,006 |

Russell 2000 Growth Index | $12,564 |

Russell 2000 Value Index | $13,436 |

MSCI EAFE Index | $13,250 |

Lehman Brothers Aggregate Bond Index | $11,468 |

Portfolio Total | $100,292 |

Average Annual ROR for the Portfolio | 12.22% |

Not too shabby, if you ask me. But, you could have done even better if you had simply put 1/3 into each of the S&P 500, Russell 2000, and MSCI EAFE. Doing so, would have given you a total ending value of $105,975 for an average annual rate of return of 12.53%. Of course these numbers do not reflect brokerage commissions and management expenses. But, even considering commissions, you still could have built a pretty nice portfolio over the last 20 years simply by indexing.

Tags: Index Returns, S&P 500 Index, Russell 2000 Index, Portfolio Analysis

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