Emerging market trackers
Emerging market trackers
As we all know, emerging markets compared to more established markets (e.g. US, European markets) have the advantage of potentially yielding higher results but at the expense of much more volatility.
Over a 6 year period of quite actively buying and selling emerging market trackers, I achieved the following results:
While the results themselves have been quite nice, these emerging market trackers haven't outperformed the Euro Stoxx 600 which to me was quite a surprising result.
Yes, the peaks usually rose faster but the dips hit harder and the overall outcome still remains: sticking with the market over a longer period of time pays off.
The only caveat is that the Euro Stoxx 600 is currently close to an all-time high, so should there be a drop in the future (as it has occurred every handful of years in the past 20 years), that 40% gain could be completely destroyed whereas buying & selling yielded 30% which is now safely banked as cash and with the current volatility I don't have any emerging markets in my portfolio.
As we all know, emerging markets compared to more established markets (e.g. US, European markets) have the advantage of potentially yielding higher results but at the expense of much more volatility.
Over a 6 year period of quite actively buying and selling emerging market trackers, I achieved the following results:
- Average result per tracker: +11%
- Average annualized result per tracker: +9%
- Total gains over 6 years: ca. 30%
- Euro Stoxx 600 over 6 years: ca. 40%
While the results themselves have been quite nice, these emerging market trackers haven't outperformed the Euro Stoxx 600 which to me was quite a surprising result.
Yes, the peaks usually rose faster but the dips hit harder and the overall outcome still remains: sticking with the market over a longer period of time pays off.
The only caveat is that the Euro Stoxx 600 is currently close to an all-time high, so should there be a drop in the future (as it has occurred every handful of years in the past 20 years), that 40% gain could be completely destroyed whereas buying & selling yielded 30% which is now safely banked as cash and with the current volatility I don't have any emerging markets in my portfolio.
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