Interactive Tool
The Case for Diversification
This chart ranks 9 asset classes from best to worst each year. The takeaway? Last year's winner is rarely next year's — and a diversified portfolio quietly outperforms the guessing game over time. Click any asset class to highlight it.
Large Cap
Small Cap
Int'l Dev
Emg Markets
REITs
HG Bonds
HY Bonds
Cash
Diversified
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Ann.
REITs+8.3%
REITs+19.7%
Sm Cap+38.8%
REITs+28.0%
REITs+2.8%
Sm Cap+21.3%
Emg Mkts+37.8%
Cash+1.8%
Lg Cap+31.5%
Sm Cap+20.0%
REITs+41.3%
Cash+1.6%
Lg Cap+26.3%
Lg Cap+25.0%
Emg Mkts+34.4%
Lg Cap14.1%
HG Bnd+7.8%
Emg Mkts+18.6%
Lg Cap+32.4%
Lg Cap+13.7%
Lg Cap+1.4%
HY Bnd+17.5%
Int'l+25.6%
HG Bnd0.0%
REITs+28.7%
Emg Mkts+18.7%
Lg Cap+28.7%
HY Bnd-11.2%
Int'l+18.9%
Sm Cap+11.5%
Int'l+31.9%
Sm Cap9.5%
HY Bnd+4.4%
Int'l+17.9%
Int'l+23.3%
Divers.+6.9%
HG Bnd+0.6%
Lg Cap+12.0%
Lg Cap+21.8%
HY Bnd-2.3%
Sm Cap+25.5%
Lg Cap+18.4%
Sm Cap+14.8%
HG Bnd-13.0%
Sm Cap+16.9%
HY Bnd+8.2%
Lg Cap+17.9%
REITs7.8%
Lg Cap+2.1%
Sm Cap+16.4%
Divers.+11.5%
HG Bnd+6.0%
Cash0.0%
Emg Mkts+11.6%
Sm Cap+14.7%
REITs-4.0%
Int'l+22.7%
Divers.+9.8%
Int'l+11.8%
Int'l-14.0%
HY Bnd+13.5%
Emg Mkts+8.1%
Divers.+15.3%
Int'l7.2%
Divers.+0.3%
Lg Cap+16.0%
HY Bnd+7.4%
Sm Cap+4.9%
Int'l-0.4%
REITs+8.6%
Divers.+14.6%
Lg Cap-4.4%
Divers.+18.9%
Int'l+8.3%
Divers.+10.9%
Divers.-16.5%
Divers.+12.8%
Divers.+7.4%
Sm Cap+12.8%
Divers.6.6%
Cash+0.1%
HY Bnd+15.6%
REITs+2.9%
HY Bnd+2.5%
Divers.-1.3%
Divers.+7.2%
REITs+8.7%
Divers.-5.6%
Emg Mkts+18.9%
HY Bnd+7.5%
HY Bnd+5.4%
Lg Cap-18.1%
REITs+11.4%
Cash+5.3%
HY Bnd+8.5%
HY Bnd6.0%
Sm Cap-4.2%
Divers.+12.2%
Cash+0.1%
Cash0.0%
Sm Cap-4.4%
HG Bnd+2.7%
HY Bnd+7.5%
Sm Cap-11.0%
HY Bnd+14.4%
HG Bnd+6.1%
Cash0.0%
Emg Mkts-19.7%
Emg Mkts+10.3%
REITs+4.9%
HG Bnd+7.3%
Emg Mkts4.2%
Int'l-11.7%
HG Bnd+4.2%
HG Bnd-2.0%
Emg Mkts-1.8%
HY Bnd-4.6%
Int'l+1.5%
HG Bnd+3.5%
Int'l-13.4%
HG Bnd+8.7%
Cash+0.6%
HG Bnd-1.5%
Sm Cap-20.4%
HG Bnd+5.5%
Int'l+4.4%
Cash+4.3%
HG Bnd2.3%
Emg Mkts-18.2%
Cash+0.1%
Emg Mkts-2.3%
Int'l-4.5%
Emg Mkts-14.6%
Cash+0.3%
Cash+0.8%
Emg Mkts-14.3%
Cash+2.2%
REITs-5.1%
Emg Mkts-2.2%
REITs-25.0%
Cash+5.1%
HG Bnd+1.3%
REITs+2.3%
Cash1.5%
The point isn't picking the winner. It's avoiding the temptation to chase last year's best performer. Over 15 years, no single asset class stayed on top for more than a few consecutive years — but a simple diversified portfolio delivered steady results without the stomach-churning swings. That's the power of owning a little of everything.
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Source: Data compiled from publicly available index total returns. Large Cap: S&P 500; Small Cap: Russell 2000; Int'l Developed: MSCI EAFE; Emerging Markets: MSCI EM; REITs: FTSE NAREIT All Equity; High Grade Bonds: Bloomberg U.S. Aggregate; High Yield Bonds: ICE BofA U.S. High Yield; Cash: S&P U.S. Treasury Bill 0–3 Mo. Asset Allocation: 15% Large Cap, 15% Int'l, 10% Small Cap, 10% EM, 10% REITs, 40% HG Bonds, rebalanced annually. Inspired by J.P. Morgan's Guide to the Markets, Asset Class Returns (pg. 56). Past performance does not guarantee future results. All returns are total returns including reinvested distributions through 12/31/2025. Not investment advice.