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Wilshire 5000® Ends 2019 With Record $7.5 Trillion Annual Gain, Fueled by Gains Four Quarters in a Row

January 2, 2020 GMT

SANTA MONICA, Calif.--(BUSINESS WIRE)--Jan 2, 2020--

The Wilshire 5000 Total Market Index SM, the original pure and complete measure of the U.S. stock market, rose 2.93 percent in December, 9.08 percent fourth quarter and 31.02 percent for the year, closing 2019 at 32,948.41. This quarter’s performance marked the fourth consecutive gain, boosting annual gains to the best since 2013. Without dividends reinvested, the index had an estimated market value monthly gain of $900 billion for December, quarterly gain of $2.7 trillion and a record $7.4 trillion gain for 2019, according to Wilshire Associates Incorporated (Wilshire®), a diversified global financial services firm.

“Economic data that exceeded expectations, in combination with early progress on trade negotiations, led to continued positive momentum in December. The Wilshire 5000 hit nine all-time highs this month alone, of 27 in 2019 that helped power the best annual percentage gain in six years and a record high annual dollar gain for the index,” said Jason Schwarz, President of Wilshire Analytics and Wilshire Funds Management.

Small-cap beat large-cap for the month but not the quarter, nor for the year, as represented by the Wilshire US Small-Cap Index SM and Wilshire US Large-Cap Index SM, with large-cap gains of 2.91, 9.09 and 31.51 percent, respectively, versus small-cap returns of 3.01, 9.01, and 26.21 percent, respectively. 2019 marked the third consecutive year, and fifth of the last six to see large-cap best small-cap.

Large-cap value outperformed large-cap growth for the month, as represented by the Wilshire US Large-Cap Value Index SM and Wilshire US Large-Cap Growth Index SM, with a 2.97 versus 2.85 percent gain, respectively. For the quarter and year, large-cap growth outperformed large-cap value with gains of 11.24 and 35.79 percent versus 7.12 and 27.72 percent, respectively. On balance, large-cap growth outperformed large-cap value eight of 12 months in 2019 to help fuel the index to best performer for 2019.

Small-cap value outperformed small-cap growth in December, as represented by the Wilshire US Small-Cap Value Index SM and Wilshire US Small-Cap Growth Index SM, with a 3.46 versus 2.54 percent gain. For the quarter and year, small-cap growth beat small-cap value with gains of 10.08 and 29.49 percent, respectively, versus 8.03 and 23.08 percent, respectively.

Sectors

All sectors posted monthly gains for the first time since June 2019. Industrials performed worst, rising 0.04 percent in December.

In 2019, Energy clocked 10 of twelve months as either a top- or bottom-three performer, more often than did any other sector. Fourth quarter, Energy climbed from worst performing sector in October, and second worst in November to nab the top sector spot in December, gaining 6.78. Though ultimately not a bottom-three performer for the quarter, Energy fell for the second year in a row to worst sector of the year, gaining 9.58 percent.

Information Technology took second-best sector for the third month in a row, gaining 4.15 percent and powering a second-best sector performance for the quarter, up 14.33 percent. Eight months in a top-three sector slot cemented Information Technology as best performing sector for 2019, gaining 49.64 percent.

Health Care came in third for the month, gaining 3.56 percent. Top sector performance in both October and November landed Health Care in the top spot fourth quarter, up 15.45 percent; however, in a sharp turn from best sector performance in 2018, Health Care’s three consecutive quarters in the bottom-three netted a second worst performance for the sector in 2019, up 22.22 percent.

Real Estate repeated its turn as second worst sector in December. December 31 st trading shifted the sector’s negative monthly and quarterly returns positive, netting 0.75 and 0.48 percent gains, respectively, and cementing a second worst performance for the quarter.

Utilities fell to worst fourth quarter sector, up 0.36 percent, pulled down by bottom-three performances in both October and November.

Business Development Companies (BDCs)

Business development companies, represented by the Wilshire Business Development Company Index SM, rose for the ninth month this year with a 1.24 percent gain in December that pushed quarterly gains to 3.25 percent. Fourth quarter marks the fourth consecutive positive quarter, driving annual performance to the best since 2012 with a 28.28 percent gain.

Real Estate

U.S. public real estate, as represented by the Wilshire US Real Estate Securities Index SM and Wilshire US Real Estate Investment Trust Index SM fell -0.64 and -0.68 percent, respectively, in December. The month’s losses held returns negative for the quarter as well, down -1.07 and -1.14 percent, respectively; further, annual gains retracted to net 25.79 and 25.76 percent, respectively. International public real estate, represented by the Wilshire Global exUS Real Estate Securities Index SM, bested U.S. real estate for the third month in a row, posting a 2.68 percent gain for the month and buoying returns for both the quarter and year with gains of 5.67 and 21.29 percent, respectively.

Fixed Income

Bonds, represented by the Wilshire Bond Index SM, closed out 2019 with a 0.13 percent gain in December, which boosted quarterly and annual gains to 0.63 and 11.51 percent, respectively.

Risk Parity

Multi-asset class risk parity, represented by the Wilshire Risk Parity – 10%, 12%, and 15% Target Volatility Indexes SM, rewarded higher risk for the eighth of twelve months in 2019 with 1.84, 2.19 and 2.74 percent December gains, respectively. Fourth quarter posted gains at 1.38, 1.45 and 1.33 percent, respectively. Wilshire Risk Parity – 15% Target Volatility bested lower volatility eight of twelve months to end 2019 as second best performer of all Wilshire indexes tracked, gaining 33.78 percent for the year. Wilshire Risk Parity – 10% and 12% Target Volatility Indexes netted annual gains of 24.30 and 28.55, respectively.

WILSHIRE RETURNS AT A GLANCE:

Index Name

Index Close

Total Return % Change

MTD

QTD

YTD

1-Year

3-Year

5-Year

Wilshire 5000

32948.41

2.93%

9.08%

31.02%

31.02%

14.52%

11.38%

Wilshire 4500

1527.76

2.43%

8.69%

28.06%

28.06%

10.93%

9.51%

Wilshire US Large-Cap

7545.76

2.91%

9.09%

31.51%

31.51%

15.18%

11.72%

Wilshire US Mid-Cap

11543.44

2.01%

6.67%

27.62%

27.62%

11.02%

9.33%

Wilshire US Small-Cap

11189.34

3.01%

9.01%

26.21%

26.21%

8.49%

8.26%

Wilshire US Micro-Cap

13508.49

5.54%

8.48%

17.79%

17.79%

4.77%

5.38%

Wilshire US Large-Cap Growth

9104.28

2.85%

11.24%

35.79%

35.79%

18.69%

13.54%

Wilshire US Large-Cap Value

5870.94

2.97%

7.12%

27.72%

27.72%

11.79%

9.86%

Wilshire US Mid-Cap Growth

11586.87

1.76%

8.04%

31.32%

31.32%

12.95%

9.48%

Wilshire US Mid-Cap Value

9235.86

2.28%

5.19%

23.54%

23.54%

8.39%

8.82%

Wilshire US Small-Cap Growth

10491.32

2.54%

10.08%

29.49%

29.49%

11.81%

9.14%

Wilshire US Small-Cap Value

10879.44

3.46%

8.03%

23.08%

23.08%

5.16%

7.26%

Wilshire BDC

56.72

1.24%

3.25%

28.36%

28.36%

7.93%

8.72%

Wilshire RESI

265.49

-0.64%

-1.07%

25.79%

25.79%

7.88%

7.21%

Wilshire REIT

308.13

-0.68%

-1.14%

25.76%

25.76%

7.63%

6.87%

Wilshire Global ex US RESI

3635.53

2.68%

5.67%

21.29%

21.29%

10.98%

6.19%

Wilshire Global RESI

4199.36

0.48%

1.16%

24.20%

24.20%

8.95%

6.82%

Wilshire Bond

212.54

0.13%

0.63%

11.51%

11.51%

5.07%

3.91%

Wilshire Risk Parity – 10% Target Vol

506.26

1.84%

1.38%

24.30%

24.30%

10.44%

9.00%

Wilshire Risk Parity – 12% Target Vol

662.11

2.19%

1.45%

28.55%

28.55%

12.27%

10.62%

Wilshire Risk Parity – 15% Target Vol

987.24

2.74%

1.33%

33.78%

33.78%

14.75%

12.95%

DECEMBER WILSHIRE SECTOR WINNERS AND LOSERS BY INDEX:

Wilshire 5000

Wilshire US Large-Cap

Wilshire US Small-Cap

TOP 3

 

TOP 3

 

TOP 3

 

Energy

6.78%

Energy

6.06%

Energy

19.85%

Information Technology

4.15%

Information Technology

4.26%

Health Care

4.54%

Health Care

3.56%

Utilities

3.48%

Communication Services

3.49%

 

 

 

 

 

 

BOTTOM 3

 

BOTTOM 3

 

BOTTOM 3

 

Communication Services

2.08%

Communication Services

2.04%

Information Technology

2.31%

Real Estate

0.75%

Real Estate

0.84%

Industrials

2.14%

Industrials

0.04%

Industrials

-0.29%

Real Estate

0.35%

 

 

 

 

 

 

 

2019 4 th QuarterWILSHIRE SECTOR WINNERS AND LOSERS BY INDEX:

 

Wilshire 5000

Wilshire US Large-Cap

Wilshire US Small-Cap

 

TOP 3

 

TOP 3

 

TOP 3

 

Health Care

15.45%

Health Care

14.82%

Health Care

21.95%

Information Technology

14.33%

Information Technology

14.57%

Information Technology

10.56%

Financials

9.99%

Financials

10.47%

Materials

9.01%

 

 

 

 

 

 

BOTTOM 3

 

BOTTOM 3

 

BOTTOM 3

 

Consumer Staples

3.52%

Consumer Staples

3.42%

Communication Services

5.25%

Real Estate

0.48%

Utilities

0.57%

Real Estate

2.73%

Utilities

0.36%

Real Estate

-0.03%

Utilities

-2.21%

 

 

 

 

 

 

 

2019 AnnualWILSHIRE SECTOR WINNERS AND LOSERS BY INDEX:

Wilshire 5000

Wilshire US Large-Cap

Wilshire US Small-Cap

TOP 3

 

TOP 3

 

TOP 3

 

Information Technology

49.64%

Information Technology

50.14%

Information Technology

41.10%

Communication Services

32.73%

Communication Services

33.61%

Health Care

32.37%

Financials

30.58%

Financials

31.59%

Industrials

31.66%

 

 

 

 

 

 

BOTTOM 3

 

BOTTOM 3

 

BOTTOM 3

 

Materials

22.80%

Materials

23.20%

Consumer Staples

18.18%

Health Care

22.22%

Health Care

21.27%

Communication Services

8.48%

Energy

9.58%

Energy

11.51%

Energy

-16.21%

 

 

 

 

 

 

All values as of December 31 st, 2019. Index values are in price values. All returns are total returns and reflect float-adjusted market capitalization. Returns are annualized for periods greater than one year.

About Wilshire Associates

Wilshire Associates Incorporated (“Wilshire”), a leading global financial services firm, provides consulting services, analytics solutions and customized investment solutions to plan sponsors, investment managers and financial intermediaries. Its business units include, Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and Wilshire Private Markets. The firm was founded in 1972, providing revolutionary technology and acting as an early innovator in the application of investment analytics and research to investment managers in the institutional marketplace. Wilshire also is credited with helping to develop the field of quantitative investment analysis that uses mathematical tools to analyze market risks. All other business units evolved from Wilshire’s strong analytics foundation. Wilshire developed the Wilshire 5000 Total Market Index and became an early innovator in creating integrated asset/liability analysis/simulation models as well as practical models in risk budgeting through beta and active risk analysis. Wilshire has grown to a firm of approximately 260 employees serving the needs of investors around the world. Based in Santa Monica, California, Wilshire serves approximately 500 clients across more than 20 countries. With ten offices worldwide, Wilshire and its affiliates are dedicated to providing clients with the highest quality products and services. Wilshire ® and Wilshire 5000 ® are registered service marks of Wilshire Associates Incorporated. Wilshire 5000 Total Market Index℠ is a service mark of Wilshire Associates Incorporated.

Please visit www.wilshire.com

Twitter: @WilshireAssoc

View source version on businesswire.com:https://www.businesswire.com/news/home/20200102005285/en/

CONTACT: Lisa Herbert

+1-310-899-5325 (O)

+1-310-728-5341 (C)

lherbert@wilshire.com

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: BANKING OTHER PROFESSIONAL SERVICES PROFESSIONAL SERVICES FINANCE

SOURCE: Wilshire Associates Incorporated

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PUB: 01/02/2020 09:01 AM/DISC: 01/02/2020 09:01 AM

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