Foreign big-cap value stocks outshine U.S. counterparts
ust as large-cap value stocks add significant value to U.S. stock investing, value stocks are also worthwhile internationally.
In the 87 calendar years from 1928 through 2014, U.S. large-cap value stocks compounded at 11.1%, compared with only 9.8% for the Standard & Poor’s 500 Index SPX, -0.03% a blend of value and growth.
Large-cap value's "value-added proposition" has been even greater internationally, at least over the past 40 years, as far back as we have reliable data.
From 1975 through 2014, international large-cap value stocks compounded at 14.4%, compared with 12.2% for the S&P 500.
(Because these measurement periods began in 1975, right after a major market decline, they include a few robust recovery years. Thus these returns are approximately two percentage points higher than the long-term results that should be expected.)
At those rates, a $100 initial investment would have grown to $21,762 in international large-cap value; in the S&P 500, $100 would have grown to only $9,962.
发表于 2015-5-7 10:21
| 
