Investment Returns Comparison: Asset Class Performance (2026)
Choosing where to invest requires understanding how different asset classes have performed historically in terms of both returns and risk. This comprehensive comparison covers stocks, bonds, real estate, precious metals, cryptocurrencies, and alternative investments over the past 10 years (2016-2025).
While past performance does not guarantee future results, historical data provides essential context for building a diversified portfolio. Use our <a href="/finance/investment-calculator" class="text-blue-600 hover:underline">investment calculator</a> to project future growth based on these historical return rates and your own investment timeline.
Key Insights
- Cryptocurrency had the highest absolute returns (BTC +58.4%, ETH +72.1% annualized) AND the highest risk-adjusted returns (Sharpe ratios of 0.79 and 0.82), but with drawdowns of 77-82%.
- The Nasdaq 100 outperformed the S&P 500 by 4.4% annually (16.8% vs 12.4%), turning a $10,000 difference in starting investment into a $15,300 gap after 10 years.
- Gold matched the S&P 500 on a risk-adjusted basis (both Sharpe ratio 0.43) while offering a maximum drawdown of only -11.6% vs the S&P's -25.4%.
- US bonds returned only 1.8% annually over the decade, underperforming even cash/money market funds (2.4%) due to the historic 2022 bond crash.
- A $10,000 investment in the S&P 500 in 2016 grew to $32,200, while the same amount in US aggregate bonds grew to just $11,950 -- a gap of $20,250.
10-Year Average Annual Returns by Asset Class (2016-2025)
Annualized average returns for major asset classes over the past decade. Total return includes dividends, interest, and reinvestment where applicable.
| Asset Class | Annualized Return | 10-Year Cumulative | Best Year | Worst Year |
|---|---|---|---|---|
| Bitcoin (BTC) | +58.4% | +15,620% | +1,318% (2017) | -72.6% (2018) |
| Ethereum (ETH) | +72.1% | +22,480% | +9,162% (2017) | -82.7% (2018) |
| Nasdaq 100 | +16.8% | +375% | +54.9% (2023) | -32.4% (2022) |
| S&P 500 | +12.4% | +222% | +28.9% (2019) | -19.4% (2022) |
| US Small Cap (Russell 2000) | +9.2% | +141% | +25.5% (2020) | -20.4% (2022) |
| International Developed (EAFE) | +7.1% | +99% | +22.4% (2024) | -14.5% (2022) |
| Real Estate (REITs) | +8.6% | +128% | +41.3% (2021) | -25.1% (2022) |
| Gold | +10.8% | +179% | +27.2% (2024) | -3.6% (2021) |
| Silver | +9.4% | +145% | +47.9% (2020) | -11.7% (2021) |
| US Aggregate Bonds | +1.8% | +19.5% | +5.5% (2025) | -13.1% (2022) |
| US Treasury 10-Year | +1.5% | +16.1% | +7.2% (2020) | -15.8% (2022) |
| High-Yield Bonds | +4.6% | +57% | +13.4% (2019) | -11.2% (2022) |
| Commodities (GSCI) | +4.2% | +51% | +33.1% (2022) | -23.7% (2020) |
| Emerging Markets (MSCI EM) | +5.8% | +75% | +18.2% (2017) | -20.1% (2022) |
| Cash / Money Market | +2.4% | +26.8% | +5.3% (2024) | +0.1% (2016) |
Risk-Adjusted Returns (Sharpe Ratio)
Sharpe ratio measures return per unit of risk (excess return divided by volatility). Higher is better. Calculated using 10-year data with risk-free rate of 4.5% (current T-Bill yield).
| Asset Class | Annualized Return | Volatility | Sharpe Ratio | Max Drawdown |
|---|---|---|---|---|
| Nasdaq 100 | 16.8% | 23.4% | 0.53 | -33.1% |
| S&P 500 | 12.4% | 18.2% | 0.43 | -25.4% |
| Gold | 10.8% | 14.8% | 0.43 | -11.6% |
| Bitcoin | 58.4% | 68.4% | 0.79 | -77.2% |
| Ethereum | 72.1% | 82.1% | 0.82 | -82.4% |
| Real Estate (REITs) | 8.6% | 21.6% | 0.19 | -28.7% |
| US Small Cap | 9.2% | 24.8% | 0.19 | -32.6% |
| International Developed | 7.1% | 17.5% | 0.15 | -22.4% |
| Silver | 9.4% | 28.6% | 0.17 | -35.8% |
| High-Yield Bonds | 4.6% | 10.2% | 0.01 | -15.3% |
| Emerging Markets | 5.8% | 20.4% | 0.06 | -29.8% |
| Commodities | 4.2% | 19.8% | -0.02 | -36.2% |
| US Aggregate Bonds | 1.8% | 6.4% | -0.42 | -17.8% |
| US Treasury 10-Year | 1.5% | 10.6% | -0.28 | -21.4% |
| Cash / Money Market | 2.4% | 0.3% | -7.00 | 0% |
$10,000 Invested 10 Years Ago (January 2016 - January 2026)
How $10,000 invested in January 2016 would have grown (or shrunk) by January 2026 across different asset classes, assuming reinvestment of dividends and distributions.
| Asset Class | Starting Value | Ending Value | Total Gain/Loss | CAGR |
|---|---|---|---|---|
| Bitcoin | $10,000 | $1,572,000 | +$1,562,000 | +58.4% |
| Ethereum | $10,000 | $2,258,000 | +$2,248,000 | +72.1% |
| Nasdaq 100 | $10,000 | $47,500 | +$37,500 | +16.8% |
| S&P 500 | $10,000 | $32,200 | +$22,200 | +12.4% |
| Gold | $10,000 | $27,900 | +$17,900 | +10.8% |
| Silver | $10,000 | $24,500 | +$14,500 | +9.4% |
| Real Estate (REITs) | $10,000 | $22,800 | +$12,800 | +8.6% |
| US Small Cap | $10,000 | $24,100 | +$14,100 | +9.2% |
| International Stocks | $10,000 | $19,900 | +$9,900 | +7.1% |
| Emerging Markets | $10,000 | $17,500 | +$7,500 | +5.8% |
| High-Yield Bonds | $10,000 | $15,700 | +$5,700 | +4.6% |
| Commodities | $10,000 | $15,100 | +$5,100 | +4.2% |
| Cash / Money Market | $10,000 | $12,680 | +$2,680 | +2.4% |
| US Aggregate Bonds | $10,000 | $11,950 | +$1,950 | +1.8% |
| US Treasury 10-Year | $10,000 | $11,610 | +$1,610 | +1.5% |
US Equities Continue to Dominate Traditional Assets
The past decade has been remarkable for US equities, with the S&P 500 delivering a 12.4% annualized return and the Nasdaq 100 achieving 16.8%. This performance was driven by the dominance of mega-cap technology companies (Apple, Microsoft, Nvidia, Amazon, Google, Meta, Tesla), which collectively accounted for over 30% of S&P 500 market capitalization by 2025.
$10,000 invested in the S&P 500 in January 2016 grew to $32,200 by January 2026. The same amount in the Nasdaq 100 reached $47,500, reflecting the outsized performance of the technology sector. This US equity outperformance relative to international markets has been a defining theme of the decade, with the MSCI EAFE (international developed) returning only 7.1% annualized.
However, concentration risk has grown substantially. The "Magnificent 7" tech stocks now represent a historically high share of index weight, meaning the S&P 500 is less diversified than its 500-stock name suggests. Investors seeking true diversification may want to complement US large-cap exposure with small caps, international stocks, and alternative assets. Our compound interest calculator can help you project how different return assumptions affect long-term wealth.
The Bond Market Challenge in a Rising Rate Era
The 2016-2025 decade was particularly challenging for bond investors. US aggregate bonds returned just 1.8% annualized, significantly below the historical average of approximately 5-6%. The primary culprit was the dramatic rise in interest rates from near-zero in 2021 to 5.25-5.50% in 2023, which caused existing bonds to lose substantial value.
The 2022 bond market crash was historically severe, with the Bloomberg US Aggregate Bond Index falling 13.1% -- its worst year since the index's inception. This challenged the traditional 60/40 stock-bond portfolio, as bonds failed to provide their usual negative correlation during the equity decline.
Looking forward, the higher rate environment has a silver lining: new bonds now offer yields of 4-5%, providing significantly better prospective returns than the near-zero yields available from 2016-2021. Investors entering bond markets today face a much more favorable starting point than those who bought at the yield lows.
Alternative Assets: Gold, Crypto, and Real Estate
Gold proved its worth as a portfolio diversifier, delivering a 10.8% annualized return with relatively low volatility (14.8%) and a maximum drawdown of just 11.6%. The 2023-2024 gold rally, driven by central bank purchases and geopolitical uncertainty, pushed prices to all-time highs above $2,700/oz. Gold's Sharpe ratio of 0.43 matched the S&P 500, making it one of the best risk-adjusted performers of the decade.
Cryptocurrency assets delivered extraordinary absolute returns but with extreme volatility. Bitcoin's 58.4% annualized return turned $10,000 into $1.57 million, while Ethereum's 72.1% return turned $10,000 into $2.26 million. However, the maximum drawdowns of -77% (BTC) and -82% (ETH) require iron conviction and a long time horizon. Despite the volatility, crypto's Sharpe ratios (0.79 for BTC, 0.82 for ETH) were actually the highest of any asset class.
Real estate investment trusts (REITs) delivered 8.6% annualized returns but experienced significant volatility, including a -25.1% decline in 2022 as rising interest rates pressured property valuations. The commercial real estate sector faced particular challenges from the work-from-home trend reducing office demand. Residential REITs performed better, benefiting from housing shortages in most US metros.