FOR IMMEDIATE RELEASE
lherbert@wilshire.com
-- Real Estate Best Performer in Fourth Quarter and 2015 --
-- Energy Worst Performing Sector for Second Year in a Row amid Decline in Oil Prices --
SANTA MONICA, Calif., January 04, 2016 - The Wilshire 5000 Total Market Index℠ , the original pure and complete measure of the
U.S. stock market, was up 0.67 percent and 6.36 percent in 2015 and the fourth quarter, respectively, while falling -1.97 percent for the month of December, closing the year at 20,979.51. Without dividends reinvested, the index had an estimated market value decline of
$575 billion for the year, a gain of $1.2 trillion for the fourth quarter and a loss of $575 billion for December, according to Wilshire Associates Incorporated (Wilshire®), a diversified global financial services firm.
"When the delayed yet much anticipated Fed action to raise interest rates finally happened, the value of the Wilshire 5000 gained $350 billion only to give it all back the next day, making it one of the biggest non-events of 2015," said Robert J. Waid, managing director, Wilshire Associates. "The market rally stalled in June with the Wilshire 5000 setting its thirteenth and last market high of 2015. This was a little more than a month before market volatility returned, kick-started by China in August and continuing through December with 20 of 24 trading days rising or falling more than 100 points."
Changing oil prices affected the broader market more than just the Energy Sector with an 18-month decline of approximately -65 percent per barrel.
Large-Cap growth pushed the Wilshire US Large-Cap Index℠ to register the best performance of the year and quarter with gains of 1.27 and 6.77 percent, respectively. The growth was fueled in part by the stock performance of juggernauts Amazon (AMZN) and Alphabet (formerly Google) (GOOG), which saw annual gains of 117.8 and 44.6 percent, respectively. At the same time, the Wilshire US Small- Cap Index℠ fell -4.86 and gained 2.62 percent, respectively. Large-Cap also outperformed in December by falling only -1.66 percent
versus -4.91 percent for the Wilshire US Small-Cap Index.
The Wilshire US Large-Cap Growth Index℠ was the only Wilshire 5000 style index to finish 2015 up with a gain of 3.54 percent. By comparison, the Wilshire US Large-Cap Value Index℠ fell -0.79 percent for 2015. That said, the Wilshire US Large-Cap Value outperformed the Wilshire US Large-Cap Growth in December and the fourth quarter with a loss of only -0.94 and a gain of 7.38 percent, respectively, compared with a loss of -2.50 percent and a gain of 6.08 percent, respectively.
The growth stock outperformance did not carry over to small-cap stocks, as the Wilshire US Small-Cap Growth Index℠ trailed the Wilshire US Small-Cap Value Index℠ with December, fourth quarter and 2015 returns of -5.67, 1.70 and -5.28 percent, respectively, compared to returns of -4.22, 3.48 and -4.36 percent, respectively.
Sectors
Health Care was the strongest performing sector in 2015, just ahead of Consumer Discretionary, with returns of 7.81 percent versus 7.58 percent, respectively. Consumer Staples edged out Utilities for top honors in December with returns of 2.42 and 2.31 percent, respectively. The quarterly honor went to Materials over Information Technology with gains of 9.01 and 8.76 percent, respectively.
Energy, especially small-cap Energy, resumed its trend as the worst performing Wilshire 5000 sector. Overall, the Energy sector was easily the worst sector in December, compared with Materials by falling -10.48 and -4.22 percent, respectively. This made Energy the worst sector for the quarter falling -0.39 percent. This is the sixth quarter in a row where Energy was a bottom three performing sector, with four quarters as the worst performing sector. Small-cap Energy resumed its dismal year-and-a-half performance by falling -18.08 percent in December, which contributed to a decline of -8.02 percent for the quarter and a massive -40.22 percent for 2015. This was on the heels of a Small-cap Energy sector decline of -33.34 percent for 2014.
Business Development Companies (BDCs)
The Wilshire Business Development Company Index℠ gains for the year were more than wiped out by falling -6.55 percent in December, pulling the year down -2.67 percent.
Real Estate
US real estate was one of the few bright spots, as the Wilshire US Real Estate Securities Index℠ and the Wilshire US Real Estate Investment Trust Index℠ saw December gains of 1.93 percent and 1.95 percent, respectively, thus finishing as the top performers of 2015 with returns of 4.81 and 4.23 percent, respectively. International public real estate trailed U.S. public real estate for the second month in a row with the Wilshire exUS Real Estate Securities Index℠ falling -1.58 percent in December and -3.43 percent for the year.
Index Name | Index Close | Total Return % Change | |||||
MTD | QTD | YTD | 1-Year | 3-Year | 5-Year | ||
Wilshire 5000 | 20979.51 | -1.97% | 6.36% | 0.67% | 0.67% | 14.72% | 12.09% |
Wilshire 4500 | 1012.56 | -3.83% | 3.10% | -2.65% | -2.65% | 13.30% | 10.48% |
Wilshire US Large-Cap | 4766.78 | -1.66% | 6.77% | 1.27% | 1.27% | 14.99% | 12.32% |
Wilshire US Mid-Cap | 7740.38 | -3.58% | 2.34% | -2.63% | -2.63% | 13.24% | 10.70% |
Wilshire US Small-Cap | 7702.09 | -4.91% | 2.62% | -4.86% | -4.86% | 12.20% | 10.14% |
Wilshire US Micro-Cap | 10698.62 | -3.70% | 3.92% | -4.13% | -4.13% | 13.62% | 9.28% |
Wilshire US Large-Cap Growth | 5211.29 | -2.50% | 6.08% | 3.54% | 3.54% | 16.78% | 13.08% |
Wilshire US Large-Cap Value | 4105.06 | -0.94% | 7.38% | -0.79% | -0.79% | 13.45% | 11.65% |
Wilshire US Mid-Cap Growth | 7311.31 | -4.52% | 1.11% | -3.85% | -3.85% | 13.49% | 10.18% |
Wilshire US Mid-Cap Value | 6778.79 | -2.53% | 3.78% | -1.01% | -1.01% | 13.03% | 11.35% |
Wilshire US Small-Cap Growth | 6607.57 | -5.67% | 1.70% | -5.28% | -5.28% | 12.71% | 10.25% |
Wilshire US Small-Cap Value | 8236.46 | -4.22% | 3.48% | -4.36% | -4.36% | 11.76% | 9.93% |
Wilshire BDC | 54.27 | -6.55% | 3.27% | -2.67% | -2.67% | 1.23% | 4.40% |
Wilshire RESI | 229.72 | 1.93% | 7.64% | 4.81% | 4.81% | 12.09% | 12.44% |
Wilshire REIT | 269.74 | 1.95% | 7.47% | 4.23% | 4.23% | 11.84% | 12.44% |
Wilshire Global ex US RESI | 3013.56 | -1.58% | 0.63% | -3.43% | -3.43% | 2.63% | 5.90% |
Wilshire Global RESI | 3579.61 | 0.61% | 4.96% | 1.65% | 1.65% | 8.12% | 9.58% |
Wilshire Associates Incorporated issued this content on 2016-01-04 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-04 21:50:51 UTC
Original Document: http://wilshire.com/Portals/0/press/analytics/2016/wilshire-indexes-december-2015-news-release.pdf
