{"id":565,"date":"2024-04-18T11:45:24","date_gmt":"2024-04-18T11:45:24","guid":{"rendered":"http:\/\/www.allocatewisely.com\/?p=565"},"modified":"2024-05-12T14:14:49","modified_gmt":"2024-05-12T14:14:49","slug":"msci-world-index-part-6-cagr-and-cumulative-return","status":"publish","type":"post","link":"https:\/\/www.allocatewisely.com\/?p=565","title":{"rendered":"MSCI World Index – Part 10: CAGR and Cumulative Return"},"content":{"rendered":"

Over the 36-year period, the compounded annual growth rate (CAGR) for the total return numbers is 8.3% in USD and 12.4% in ISK. For the price returns, it is 5.9% and 9.9%. So both exchange rate movements and total returns matter a lot, as can be seen more clearly in the two charts below.<\/span><\/p>\n

The cumulative total return for the MSCI World Index over the 36-year period is 1.654% in US dollars and 6.712% in Icelandic kronas. In other words, a 100-unit invested at the end of 1987 was worth 1.754 dollars and 6.712 kronas at the end of last year (2023).<\/span><\/p>\n

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The cumulative price return for the MSCI World Index over the 36-year period is 677% in US dollars and 2.872% in Icelandic kronas. In other words, a 100-unit invested at the end of 1987 was worth 777 dollars and 2.972 kronas at the end of last year (2023).<\/span><\/p>\n

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Here using a more proper semi-log y-axis scale with base 10.<\/span><\/p>\n

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Over the 36-year period, the compounded annual growth rate (CAGR) for the total return numbers is 8.3% in USD and 12.4% in ISK. For the price returns, it is 5.9% and 9.9%. So both exchange rate movements and total returns matter a lot, as can be seen more clearly in the two charts below. The […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-565","post","type-post","status-publish","format-standard","hentry","category-stock-market-returns"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9jVx4-97","jetpack_likes_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.allocatewisely.com\/index.php?rest_route=\/wp\/v2\/posts\/565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.allocatewisely.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.allocatewisely.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.allocatewisely.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.allocatewisely.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=565"}],"version-history":[{"count":14,"href":"https:\/\/www.allocatewisely.com\/index.php?rest_route=\/wp\/v2\/posts\/565\/revisions"}],"predecessor-version":[{"id":3218,"href":"https:\/\/www.allocatewisely.com\/index.php?rest_route=\/wp\/v2\/posts\/565\/revisions\/3218"}],"wp:attachment":[{"href":"https:\/\/www.allocatewisely.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.allocatewisely.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.allocatewisely.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}