The Range of Annual Returns

The Range of Annual Returns

At a time when investors have experienced the worst quarter of market returns in perhaps their lifetime it is instructive to review the expectations of long range returns based on various levels of portfolio risk. Vanguard provides the following chart to illustrate that over the long term, a) diversified portfolios have stable expected annualized returns commensurate with their risk level and also that b) any one year can have significant volatility. Check it out...