Q1 2021 Returns By Asset Class

This post contains the usual returns by asset class for this past quarter (by representative ETF), last twelve months, last five years, and last 10 years. There is no year-to-date this quarter since Q1 and year-to-date are the same. I’m also retiring the chart that shows returns since the financial crisis lows of 3/9/2009 and have replaced it with a new chart that shows returns since the covid low (3/23/2020).  While there is still no predictive power in this data, I’ll continue to post this quarterly for those of you that are interested. 

Last Quarter (1/1/21-3/31/21)
Last 12 Months (4/1/20-3/31/21)
Last 5 Years (4/1/16-3/31/21)
Since Covid Low (3/23/20-3/31/21)

A few notes:

  • Another great quarter for equities in Q1, following the spectacular Q4. US Small Caps led the way (+10.3%), followed by REITs (+8.8%), Commodities (+8%) led by energy, US Large Caps (+6.4%), Foreign Developed (+4.5%), and Emerging Markets (+4%).
  • It was a tough quarter for Bonds as interest rates rose, especially on longer-dated treasuries. The Federal Reserve indicated that they are likely to hold overnight rates at 0% through at least 2022, but longer term treasuries reacted to the increased likelihood of inflation with the US 10-yr Treasury rising to 1.74%, up from 0.93%, just a quarter ago. High-yield (“junk”) Bonds eked out a positive return (+0.6%), with US Short-Term Corporates losing 0.6%, and US Aggregate Bonds losing 3.6%. Local Currency Emerging Market Bonds fared worst at -7.1%.
  • Over the last 12 months, all assets classes have shown positive returns, amidst the worst pandemic in a century. US Small Caps are now up 120% from their Covid low on 3/23/2020.

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