Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Commodities Slump as Real Estate Stocks Steal the Show in 2023

Published 01/02/2024, 07:42 AM
GSG
-
VTI
-
VNQ
-
BND
-
VNQI
-

Real estate securities rebounded sharply in December, leading the broad-based gains for the major asset classes in the final month of 2023, based on a set of ETFs.

Commodities, by contrast, were the downside outlier, for December and for the calendar year that just ended.

Vanguard US Real Estate Index Fund (NYSE:VNQ) surged 9.4% in December, topping the long list of gainers for last month. The rise follows an even stronger advance in November for the asset class.

International property stocks ex-US were the second-best performers last month. Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares (NASDAQ:VNQI) rallied 8.2%.

US stocks (VTI) and bonds (BND) also rose in December, as did cash (SHV). The only loser last month for the major asset classes: commodities GSG, which fell 3.0%, the third straight monthly decline.

Widespread gains marked results for 2023, except for commodities (GSG), which lost 5.5% for the year. Last year’s top winner: US stocks (VTI), which surged 26.1%, the strongest performance by far in 2023 for the major asset classes. GMI Table-Total Returns

The Global Market Index (GMI) also enjoyed a strong year via a 19.2% surge in 2023. The gain marks a strong recovery after 2022’s hefty loss.

GMI is an unmanaged benchmark (maintained by CapitalSpectator.com) that holds all the major asset classes (except cash) in market-value weights via ETFs and represents a competitive benchmark for multi-asset-class portfolios.

GMI’s performance over the past year continues to benefit from the strong trend in US stocks (VTI). By comparison, the US bond market (BND), although rebounding from recent weakness, continues to trail by a wide margin over the past 12 months. GMI vs US Stock & Bond Markets

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.