ETFs that beat the market etc: what’s the average return?

The average rate of return is important for both ETF investors and equity collectors. After all, we have to face this value if we are not investing in index funds anyway. In concrete terms, this means that it is a measure of our return, or should be the minimum of what we are striving for.

There are simple definitions of the average return. It is commonly said that the wide market makes 7-9% per year. But that’s where it starts. There are differences depending on the market you are looking at. Different time periods can also bring different values ​​to light. If we start or end with a crash, the performance is different. There should also be differences between 1950 and 1970.

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The average rate of return that we always refer to as ETF investors or stock gatherers is therefore a rather vague construction. Nevertheless, there are tools that we can use to measure and compare performance.

ETF, Stock-Picking & Co .: Including Average Returns

After all, the average return is very difficult to calculate. In fact, ETF investors and stock pickers should use them from a historical perspective. We can’t just say that if we’re generating 7% per year then we’re more or less on the market consensus. Or calculate with it. Or that we are crossing the broad market if we are doing better in each year.

This means that the average return should only be a construction, especially for us as active investors. We should rather act a bit more conservatively for the calculations. Nobody guarantees us a future return of 7 or 9% per annum as an ETF investor. In addition, stock pickers do not need to feel much pressure to urgently get to these values.

Especially since individual performances can sometimes deviate significantly from this. So far this year, the S&P 500 stands at -12.5%. This opens up a whole new dimension: namely, that not only variable positive performances belong to the overall mix. But also particularly successful years with clear double-digit price increases. The very extreme scope of the individual years shows us that we cannot really plan with him, at least not in the short term.


Therefore, the average return should be more of a reminder for ETF investors and for stock gatherers. It is not about finding a turn in stone and facing it. No, but to get a rough idea of ​​what was historically possible and what was not. Stupid investors know, however, that the future is not as certain as you sometimes want it to be.

Therefore, be careful with such calculations. But use it to give you a rough feel for the future. Just be sure to check back from time to time just how much value has really turned out by looking at the past.

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