Here is one word to sum up the performance of the ten sectors that make up the Dow Jones Total Market Index: WILD!
What you see below is a color-coded yearly ranking of each of the ten sectors plus the return for the total market index and the portfolio, which is comprised of equal amounts invested in each of the ten sectors, rebalanced annually. As expected, neither the total market index or the portfolio ever rank at the top nor do they rank at the bottom in any one year. This is due to the fact that they both include all the sectors.
I also summed up the returns in this graphic:
It’s important to note that although the portfolio outperformed the Total Market Index, these are performance numbers for indices and NOT actual mutual funds or exchange-traded funds, which would have fees associated with each. I’m working on getting a realistic portfolio published and should be done in a day or two.
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