- Majority of MarketGrader Indexes Beat their Benchmarks in 2024
- 92% of MarketGrader Indexes Lead their Benchmarks Over Five and Ten Years
- While MarketGrader Indexes Outperformed Across US, Developed, and Emerging Markets, US Core Indexes Stood Out the Most
The MarketGrader Indexes closed a solid 2024 with 68% outperforming their benchmarks across global markets, and now nine out of every 10 MarketGrader Indexes lead their bogey on an annualized basis in the last decade. This is clear proof that our GARP-based selection is not limited to the US market but that it works globally, which lies at the heart of MarketGrader’s mission: To help investors thrive by owning the very best companies in the world.
U.S. Core Indexes Shine Brightest in 2024 Across Large, Mid, and Small Caps
The Russell 3000 Index, a broad measure of U.S. equities, closed 2024 with a total return of 23.8%, the sixth year in the last 10 in which it has posted a gain of at least 20%. An investor owning a low-cost ETF tracking the Russell 3000 would have earned 12.5% per year in the last decade (before fees and inflation).
By contrast, the MSCI World ex US Index, a broad measure of developed market equities, gained only 5.3% in 2024 and 5.8% annually in the last decade. And while emerging markets did slightly better than developed markets in 2024, with the MSCI Emerging Markets Index up 8.1% in USD, that index has lagged MSCI World ex US by 180 bps per year in the last decade. Both indexes have lagged U.S. equities by well over 6% per year in the last decade, as shown in Figure 1.
Figure 1. Performance of Select Benchmarks of US, Developed, and Emerging Market Equities
All values are based on total returns through Dec. 31, 2024. Sources: MarketGrader, FactSet.
MarketGrader’s Core U.S., where we include our large cap, mid cap, small cap, all-cap, and growth and value indexes had a stellar 2024, with 18 out of 19 indexes (95%) outpacing their benchmark. Eighteen of the 19 U.S. Core Indexes published by MarketGrader have outperformed their benchmark in the last 1, 3, 5, and 10 years. The sole exception has been the US Large Cap Growth Index, which trailed its benchmark, the Russell 1000 Growth Index, by 98 bps in 2024, despite a total return of 32.4%.
Among our core indexes, our U.S. Large Cap Select 50 Index was the top performer in 2024, with a total return of 37.1%. The Index has now returned 11% and 18% annually in the last three and five years, respectively. Its parent index, the MarketGrader U.S. Large Cap Core Index (which has twice as many constituents), wasn’t far behind, gaining 36.7% last year, and 12% and 18% in the last three and five years, respectively, on an annualized basis. Rounding up our top three in 2024 was our U.S. Mid Cap Select 30 Index, which gained 25.3%, outpacing its benchmark, the S&P Mid Cap 400 Index, by 1,130 bps. It has now returned 13% and 16% annually in the last three and five years, respectively. Notably, the average excess return for all our core U.S. indexes in 2024 was 676 bps. Figure 2 shows the performance of our core U.S. indexes in 2024 ranked by excess return relative to the benchmark, as well as 3-Yr. and 5-Yr. annualized returns.
Figure 2. Performance of MarketGrader U.S. Core Indexes in 2024 & Annualized 3-Yr & 5-Yr Returns
| Ending December 31, 2024 | 2024 | 3-Yrs | 5-Yrs | ||||
| Index Name | Strategy | Return | ER (bps) | Return | ER (bps) | Return | ER (bps) |
| MarketGrader US Large Cap Select 50 Index (MCW) | US Large Cap Core | 37.1% | 1205 | 11.0% | 205 | 18.2% | 368 |
| MarketGrader US Large Cap Core Index (MCW) | US Large Cap Core | 36.7% | 1170 | 11.7% | 276 | 18.4% | 386 |
| MarketGrader US Mid Cap Select 30 Index (MCW) | US Mid Cap Core | 25.3% | 1134 | 13.1% | 821 | 16.4% | 611 |
| MarketGrader US Large Cap Select 30 Index (MCW) | US Large Cap Core | 35.6% | 1057 | 10.8% | 191 | 18.2% | 366 |
| MarketGrader US Mid Cap Select 50 Index (MCW) | US Mid Cap Core | 24.4% | 1045 | 10.6% | 570 | 15.4% | 507 |
| Barron’s 400 Index (Market Cap Weighted) | US All-Cap | 34.2% | 913 | 10.7% | 178 | 17.3% | 277 |
| MarketGrader US Large Cap Value Index (MCW) | US Large Cap Value | 22.4% | 804 | 11.5% | 588 | 14.4% | 576 |
| MarketGrader US Small Cap Select 50 Index (MCW) | US Small Cap Core | 16.1% | 741 | 6.1% | 423 | 11.0% | 266 |
| MarketGrader US Small Cap Core 100 Index (EW) | US Small Cap Core | 15.6% | 694 | 9.9% | 796 | 15.9% | 759 |
| MarketGrader US Small Cap Core 100 Index (MCW) | US Small Cap Core | 15.4% | 673 | 9.0% | 713 | 14.4% | 607 |
| MarketGrader US Small Cap Select 30 Index (MCW) | US Small Cap Core | 15.2% | 648 | 7.0% | 506 | 10.4% | 207 |
| MarketGrader US Mid Cap Core 100 Index (MCW) | US Mid Cap Core | 19.8% | 585 | 9.0% | 411 | 14.4% | 404 |
| MarketGrader US Small Cap (ex-Mid) 100 Index (EW) | US Small Cap ex Mid Cap | 14.0% | 528 | 8.9% | 698 | 17.1% | 876 |
| MarketGrader US Small Cap (ex-Mid) 100 Index (MCW) | US Small Cap ex Mid Cap | 13.6% | 491 | 7.8% | 592 | 15.4% | 703 |
| MarketGrader US Mid Cap Core 100 Index (EW) | US Mid Cap Core | 17.7% | 377 | 8.9% | 402 | 14.4% | 402 |
| MarketGrader US Large Cap 100 Index (MCW) | US Large Cap Core – Style Neutral | 28.6% | 353 | 10.6% | 167 | 16.0% | 152 |
| Barron’s 400 Index (Equally Weighted) | US All-Cap | 18.5% | 317 | 6.1% | 228 | 13.2% | 324 |
| MarketGrader US Large Cap 200 Index (MCW) | US Large Cap Core – Style Neutral | 27.1% | 204 | 10.2% | 131 | 15.7% | 116 |
| MarketGrader US Large Cap Growth Index (MCW) | US Large Cap Growth | 32.4% | -98 | 9.0% | -149 | 16.6% | -231 |
We’ll be publishing a series of articles in the next few weeks breaking down sources of performance of our indexes across all markets in 2024, where we’ll highlight indexes or markets where we did particularly well as well as those where we did not. For a complete view of all our indexes’ returns in 2024, please download out most recent Global Indexes Report Cards, linked below.
MarketGrader vs. Benchmarks – Global Indexes Report Card 2024
MarketGrader vs. Active Managers – Global Indexes Report Card 2024
