The Wilshire 5000 Total Market IndexSM, 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 IndexSM and Wilshire US Large-Cap IndexSM, 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 IndexSM and Wilshire US Large-Cap Growth IndexSM, 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 IndexSM and Wilshire US Small-Cap Growth IndexSM, 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 31st 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 IndexSM, 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 IndexSM and Wilshire US Real Estate Investment Trust IndexSM 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 IndexSM, 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 IndexSM, 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 IndexesSM, 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 |
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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% | |
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BOTTOM 3 |
| BOTTOM 3 |
| BOTTOM 3 |
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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% | |
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2019 4th Quarter WILSHIRE SECTOR WINNERS AND LOSERS BY INDEX: |
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Wilshire 5000 | Wilshire US Large-Cap | Wilshire US Small-Cap |
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TOP 3 |
| TOP 3 |
| TOP 3 |
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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% | ||
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BOTTOM 3 |
| BOTTOM 3 |
| BOTTOM 3 |
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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% | ||
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2019 Annual WILSHIRE 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% |
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BOTTOM 3 |
| BOTTOM 3 |
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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% |
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All values as of December 31st, 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
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