FTSE 100 is the only index to have negative returns in 20 years among five largest indices

Economy & Politics | Reports

Data gathered by Buyshares shows over the last two decades, the FTSE 100 was the only index to register negative return of investment (ROI) at -1.29% among major indices. The ROI was recorded between July 1st 2000, and July 1st 2020.

The research overviewed the ROI of Dow Jones, S$P 500, NASDAQ, FTSE 100, and Nikkei indices. United States-based NASDAQ index registered the highest return of investment at 156.03%.

Dow Jones had the second-highest ROI at 147.61% followed by the S&P 500 index at 116.02%. Japan’s Nikkei index had the fourth highest returns at 35.55%.

The research also overviewed the ‘Return of Investment’ of the five indices based on year-to-date points. From the data, NASDAQ is the only index with positive returns at 13.17%.

The S&P 500 had returns of -3.55% to emerging as the least impacted index while Japan’s Nikkei index had a YTD returns of -6.48%. The Dow Jones at -9.82%. On the other hand, FTSE 100 has recorded the worst returns at -18.35%.

The negative YTD returns are tied to the impact of coronavirus pandemic. However, some indices might recover. According to the Buyshares research report: “Despite having negative returns in the last two decades, the FTSE 100 index is staring at a bright future considering that the United Kingdom’s economy is planning to reopen as government measures to contain the pandemic begins to pay off. In the recent past, FTSE 100 risk sentiment was boosted by news of a possible coronavirus vaccine from Pfizer and Germany’s Biotech, which was found to be well tolerated in early-stage human trials.”

For US-based indices, the recovery period might be longer considering that the country is staring at a possible second Covid-19 wave.

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