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The UK is at more or less the same price as it was in 2000. France same as 2008. Meanwhile SPY is up 2.75x in that period. The US seems to be the anomaly. Value
by scrivna 4y ago
The UK is at more or less the same price as it was in 2000. France same as 2008. Meanwhile SPY is up 2.75x in that period. The US seems to be the anomaly. Value doesn’t always go higher. Maybe the USA is special, maybe not.
- digitalnatives 4y agoSPY is differently weighted than for example FTSE. Most indexes do not factor in dividends, if you look at the total return data where dividends are reinvested you will see there are gains in Europe, but less than the US.
- scrivna 4y agoThanks, I hadn’t realised the “obvious” indexes were measuring different things
- lordnacho 4y agoIs that with dividends? Watch out because the German DAX actually does have reinvestment in it iirc. Most of the others don't.
- qznc 4y agoAn index never includes dividends. An index fond might (accumulating) or might not (distributing).
- nly 4y agoThe UK FTSE all share total return index, which accounts for reinvested dividends, is at 8430 today and was at 2870 in May 2000. That's an annualized return of exactly 5%/year
- weberer 4y agoI'd wager most of that difference is due to the USA's tech industry growth.
- scrivna 4y agoThanks for pointing out dividend adjustments work differently on some indexes Adjusted for dividends since 2012 VUKE - Vanguard UK 100 up 100% VUSA - Vanguard S&P500 up 350%