BONDDESK® | Bond vs. Equity Returns


The following charts show historical returns for the bond market vs. the equity market. During the past 20 years the trends are consistent - bonds have provided a steady stream of payments leading to much more stable returns. Compared to investment in equity, bonds have been more effective in preserving cash to meet predictable expenses such as college expenses or retirement.

 


FusionChart

Total Annual Returns: 1989-2008

Bond vs. Equity

IndexAverageVolatilityLowestHighest
BondBarclays Capital U.S. Aggregate Bond Index*7.6%5.3%-2.9%18.5%
EquityS&P 500 Index10.4%20%-37%37.6%

* The Barclays Capital U.S. Aggregate Bond Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues rated investment grade or higher.

Data Sources:

Barclays Bond Index
S&P 500 Index
FusionChart

Total Annualized Returns: 2003-2008

Bond vs. Equity

IndexAnnualized Retrun
BondBarclays Capital U.S. Aggregate Bond Index*4.7%
EquityS&P 500 Index-2.2%

* The Barclays Capital U.S. Aggregate Bond Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues rated investment grade or higher.

Data Sources:

Barclays Bond Index
S&P 500 Index
FusionChart

Total Annualized Returns: 1998-2008

Bond vs. Equity

IndexAnnualized Retrun
BondBarclays Capital U.S. Aggregate Bond Index*5.6%
EquityS&P 500 Index-1.4%

* The Barclays Capital U.S. Aggregate Bond Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues rated investment grade or higher.

Data Sources:

Barclays Bond Index
S&P 500 Index
FusionChart

Total Annual Returns: 1988-2008

Bond vs. Equity

IndexAnnualized Retrun
BondBarclays Capital U.S. Aggregate Bond Index*7.4%
EquityS&P 500 Index8.4%

* The Barclays Capital U.S. Aggregate Bond Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues rated investment grade or higher.

Data Sources:

Barclays Bond Index
S&P 500 Index