SANTA MONICA, Calif.--(BUSINESS WIRE)--The Wilshire 5000 Total Market IndexSM, the original pure and complete measure of the U.S. stock market, gained 13.37 percent in 2016, closing the year at 23,273.97. Value and Small-Cap indexes led the market to a winning month, quarter and year creating the eighth annual gain in a row. This is the longest annual winning streak since 1989 finished a string of eight winning years in a row. Without dividends reinvested, the index had an estimated market value gain of $2.6 trillion for the year, $975 billion for the fourth quarter and $475 billion for December, according to Wilshire Associates Incorporated (Wilshire®), a diversified global financial services firm.
“The impact of the Fed’s recent and much anticipated decision to raise interest rates was relatively minor, as the Wilshire 5000 reached its 20th record high for the year two days later” said Robert J. Waid, managing director, Wilshire Associates. “Although, it did stall the rally stemming from the November election, which had pushed the Wilshire 5000 Index to gain 7.51 percent in the six weeks following election night to the year’s last recorded high on December 20, 2016.”
Small-cap stocks outperformed large-cap stocks for December and the fourth quarter as the Wilshire US Small-Cap IndexSM gained 2.19 percent and 8.30 percent, respectively, versus the Wilshire US Large-Cap IndexSM, which gained 2.03 percent and 4.14 percent during these time periods. Small-cap stocks additionally experienced the best size performance for the year with a return of 22.41 percent versus the Wilshire US Large-Cap Index SM, which returned 12.49 percent in 2016.
Value was the winning style for large-cap stocks as The Wilshire US Large-Cap Value IndexSM outperformed the Wilshire US Large-Cap Growth IndexSM on a monthly, quarterly and annual basis. The Wilshire US Large-Cap Value IndexSM gained 2.79 percent for the month, 4.38 percent for the quarter, and 15.44 percent for the year, compared to the Wilshire US Large-Cap Growth IndexSM, which gained 1.27, 3.90, and 8.97 over the same time periods.
Value was also the wining style for small-cap stocks. The Wilshire US Small-Cap Value IndexSM gained 2.88 for the month, 9.04 for the quarter, and 27.68 for the year, while the Wilshire US Small-Cap Growth IndexSM gained 1.54, 7.62, and 16.97 percent over the same time periods. The Wilshire US Small-Cap Value IndexSM was the best performer of all style indexes on a monthly, quarterly and annual basis for 2016. The index also saw its best quarterly returns since 2013 and the best yearly returns since 2009.
Sectors
Following two consecutive years as the worst performing sector, the Energy sector finished 2016 as the best performing sector, gaining 27.87 percent for the year. The Telecom Services and Utilities sectors were the top performing sectors in December, returning 7.90 and 4.74 percent, respectively. However, the Financial sector still outpaced every other sector as the top performing sector for the fourth quarter, returning 21.21 percent in this time period after being the top performing sector on a monthly basis in both October and November. Financials were well ahead of the next best quarterly performer, Industrials, which gained 8.30 percent for the fourth quarter.
The Materials and Consumer Discretionary sectors were the worst performing sectors in December, returning 0.12 and 0.21 percent, respectively. Health Care rounded out the bottom three, gaining 0.55 percent in December, and it was the worst performing sector for the quarter and year overall, falling -3.53 and -2.11 percent, respectively. Consumer Staples was the second worst performing sector for the year, gaining 6.14 percent. While the Real Estate sector has been in the bottom three performers on a monthly basis since its creation in August 2016, it was the third best performing sector in December, gaining 4.42 percent. Despite December gains, Real Estate was still the second worst performing sector for the quarter at -2.94 percent.
Business Development Companies (BDCs)
The Wilshire Business Development Company IndexSM gained 2.80 in December, which pushed its fourth quarter and annual returns to 5.81 and 24.14 percent, respectively.
Real Estate
U.S. real estate rose for the first time since July 2016, as the Wilshire US Real Estate Securities IndexSM and the Wilshire US Real Estate Investment Trust IndexSM gained 4.87 and 4.86 percent, respectively, in December. Both indexes still declined for the quarter, falling - 2.20 and -2.28 percent, respectively, but finished the year with gains of 7.62 and 7.24 percent. This represents the eighth winning year in a row for U.S. real estate. International public real estate underperformed U.S. public real estate for the second month in a row, as the Wilshire exUS Real Estate Securities IndexSM gained 1.72 percent in December and 2.30 percent in 2016.
Fixed Income
The Wilshire Bond Index gained 0.37 percent in December, but still fell -2.84 percent for the quarter. This was the worst quarterly decline for the Wilshire Bond Index since the second quarter of 2013, when it fell -2.85 percent. The index’s 2016 return was 5.65 percent.
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WILSHIRE RETURNS AT A GLANCE: |
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| Index Name | Index Close | Total Return % Change | ||||||||||||||||||||||
| MTD | QTD | YTD | 1-Year | 3-Year | 5-Year | |||||||||||||||||||
| Wilshire 5000 | 23273.97 | 2.06% | 4.54% | 13.37% | 13.37% | 8.76% | 14.71% | |||||||||||||||||
| Wilshire 4500 | 1178.37 | 1.80% | 6.46% | 18.54% | 18.54% | 7.60% | 15.26% | |||||||||||||||||
| Wilshire US Large-Cap | 5246.01 | 2.03% | 4.14% | 12.49% | 12.49% | 8.93% | 14.63% | |||||||||||||||||
| Wilshire US Mid-Cap | 8888.75 | 1.60% | 5.31% | 17.22% | 17.22% | 7.56% | 14.62% | |||||||||||||||||
| Wilshire US Small-Cap | 9239.56 | 2.19% | 8.30% | 22.41% | 22.41% | 7.55% | 15.48% | |||||||||||||||||
| Wilshire US Micro-Cap | 12379.74 | 4.98% | 8.97% | 17.86% | 17.86% | 5.10% | 15.95% | |||||||||||||||||
| Wilshire US Large-Cap Growth | 5608.70 | 1.27% | 3.90% | 8.97% | 8.97% | 8.74% | 15.20% | |||||||||||||||||
| Wilshire US Large-Cap Value | 4596.80 | 2.79% | 4.38% | 15.44% | 15.44% | 8.98% | 14.07% | |||||||||||||||||
| Wilshire US Mid-Cap Growth | 8222.32 | 1.08% | 5.93% | 13.54% | 13.54% | 5.19% | 13.49% | |||||||||||||||||
| Wilshire US Mid-Cap Value | 7928.68 | 2.32% | 4.55% | 21.04% | 21.04% | 10.17% | 15.89% | |||||||||||||||||
| Wilshire US Small-Cap Growth | 7673.78 | 1.54% | 7.62% | 16.97% | 16.97% | 4.92% | 14.14% | |||||||||||||||||
| Wilshire US Small-Cap Value | 10173.53 | 2.88% | 9.04% | 27.68% | 27.68% | 10.03% | 16.71% | |||||||||||||||||
| Wilshire BDC | 60.42 | 2.80% | 5.81% | 24.14% | 24.14% | 4.07% | 10.88% | |||||||||||||||||
| Wilshire RESI | 237.98 | 4.87% | -2.20% | 7.62% | 7.62% | 14.05% | 12.24% | |||||||||||||||||
| Wilshire REIT | 278.25 | 4.86% | -2.28% | 7.24% | 7.24% | 13.78% | 12.02% | |||||||||||||||||
| Wilshire Global ex US RESI | 2981.21 | 1.72% | -7.10% | 2.30% | 2.30% | 1.80% | 9.07% | |||||||||||||||||
| Wilshire Global RESI | 3649.18 | 3.80% | -3.88% | 5.79% | 5.79% | 8.96% | 11.24% | |||||||||||||||||
| Wilshire Bond | 183.19 | 0.37% | -2.84% | 5.65% | 5.65% | 3.59% | 3.11% | |||||||||||||||||
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DECEMBER WILSHIRE SECTOR WINNERS AND LOSERS BY INDEX: |
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| Wilshire 5000 | Wilshire US Large-Cap | Wilshire US Small-Cap | ||||||||
| TOP 3 | TOP 3 | TOP 3 | ||||||||
| Telecom Services | 7.90% | Telecom Services | 7.91% | Telecom Services | 7.06% | |||||
| Utilities | 4.74% | Utilities | 4.76% | Financials | 5.33% | |||||
| Real Estate | 4.42% | Real Estate | 4.28% | Real Estate | 4.83% | |||||
| BOTTOM 3 | BOTTOM 3 | BOTTOM 3 | ||||||
| Health Care | 0.55% | Industrials | 0.69% | Energy | -0.73% | |||
| Consumer Discretionary | 0.21% | Materials | 0.29% | Materials | -0.92% | |||
| Materials | 0.12% | Consumer Discretionary | 0.09% | Health Care | -1.56% | |||
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2016 4th Quarter WILSHIRE SECTOR WINNERS AND LOSERS BY INDEX: |
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| Wilshire 5000 | Wilshire US Large-Cap | Wilshire US Small-Cap | |||||||
| TOP 3 | TOP 3 | TOP 3 | |||||||
| Financials | 21.21% | Financials | 21.03% | Financials | 22.28% | ||||
| Industrials | 8.30% | Industrials | 7.65% | Industrials | 12.97% | ||||
| Energy | 7.54% | Energy | 7.32% | Materials | 11.31% | ||||
| BOTTOM 3 | BOTTOM 3 | BOTTOM 3 | |||||
| Consumer Staples | -1.44% | Consumer Staples | -1.64% | Information Technology | 4.82% | ||
| Real Estate | -2.94% | Health Care | -3.17% | Real Estate | 1.74% | ||
| Health Care | -3.53% | Real Estate | -4.32% | Health Care | -7.30% | ||
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2016 Annual WILSHIRE SECTOR WINNERS AND LOSERS BY INDEX: |
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| Wilshire 5000 | Wilshire US Large-Cap | Wilshire US Small-Cap | |||||||
| TOP 3 | TOP 3 | TOP 3 | |||||||
| Energy | 27.87% | Energy | 26.90% | Materials | 51.08% | ||||
| Financials | 25.66% | Telecom Services | 25.24% | Energy | 39.90% | ||||
| Telecom Services | 25.10% | Financials | 23.51% | Financials | 38.34% | ||||
| BOTTOM 3 | BOTTOM 3 | BOTTOM 3 | |||||
| Consumer Discretionary | 7.73% | Consumer Discretionary | 7.14% | Consumer Staples | 16.86% | ||
| Consumer Staples | 6.14% | Consumer Staples | 5.81% | Consumer Discretionary | 13.25% | ||
| Health Care | -2.11% | Health Care | -1.61% | Health Care | -5.72% | ||
All values as of December 30th, 2016. 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, 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 approximately300 employees serving the needs of investors around the world. Based in Santa Monica, California, Wilshire provides services to clients in more than 20 countries representing more than 500 organizations with assets totaling approximately US $7 trillion.* With ten offices worldwide, Wilshire Associates and its affiliates are dedicated to providing clients with the highest quality counsel, 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
*Client assets are as represented by Pensions and Investments (P&I), detailed in P&I’s “Largest Retirement Funds” and P&I’s “Largest Money Managers (U.S. institutional tax-exempt assets)” as of 9/30/15 and 12/31/15, and published 2/8/16 and 5/30/16, respectively).
