SANTA MONICA, CA - Rebounding from a dismal second quarter, the Wilshire 5000 Total Market IndexSM, the original pure and completeSM measure of the U.S. stock market, closed September 30, 2010 at 12,020.91, up 11.50 percent for the quarter and 9.31 percent for the month. This brought the index's year-to-date return to 5.00 percent and resulted in an estimated increase in market value of $1.4 trillion during the quarter and $1.2 trillion for the month, according to Wilshire Associates Incorporated, a global independent investment consulting and services firm.
"Looking at the returns for the Wilshire Global Total Market IndexSM, we noted that after the pessimism and sharp losses of the second quarter, global stock markets bounced back with solid gains of 15.04 percent for the third quarter and 10.01 percent for the month of September," said Robert J. Waid, managing director, Wilshire Associates and head of Wilshire Index Research. Interestingly, not only was every sector in every region of the Wilshire Global positive for the first time since the third quarter 2009, all but seven region-sectors had double digit gains. Beating U.S. returns, the Wilshire Global exUS IndexSM was up 17.14 percent this past quarter and 10.40 percent for September.
For the quarter, Latin America outperformed all other regions by posting the largest quarterly gain of 20.88 percent as measured by the Wilshire Regional Indexes. However, for the month of September, Europe outperformed all other regions by posting the largest monthly gain of 12.04 percent. Asia/Pacific posted the narrowest gain of 12.72 percent for the quarter and 8.37 percent for the month.
Zeroing in on the Wilshire 5000 performance, Russell Walker, vice president, Wilshire Associates and a member of the Investment Research Group of Wilshire Consulting, stated, Individual investors stayed on the sidelines during the third quarter and the markets moved on notably low volume. The Wilshire 5000 began the quarter with a strong 6.97 percent rise in July, then sold off some gains in August, falling -4.65 percent; September saw a major rally, with the index rising 9.31 percent.
"Ironically, the comeback in the U.S. stock market in the third quarter has as a main cause the current slowdown in the U.S. economic recovery from the recent recession, which officially ended in June 2009,said Walker. The Federal Reserve is expected to resume its purchases of U.S. Treasury paper to inject money into the financial markets and prop up the sagging U.S. economy. As Treasury yields fall, investors historically rotate into assets with higher return potential; this helped fuel the broad market rally in 2009 and seems to have repeated itself this quarter."
Small capitalization stocks experienced the strongest gains during the third quarter with the Wilshire US Small-Cap IndexSM posting a quarterly gain of 11.98 percent with the monthly return coming in at 12.13 percent. The Wilshire Global Small-Cap IndexSM posted a quarterly increase of 16.20 percent, while gaining 11.35 percent in September. Micro-cap stocks were underperformers for the quarter, with the Wilshire US Micro-Cap IndexSM showing a relatively modest gain of 7.19 percent. For the month, however, it was up 11.17 percent. The Wilshire US Large-Cap IndexSM was up 11.48 percent for the quarter and 8.99 percent for the month. On a global basis, the Wilshire Global Large-Cap IndexSM posted a quarterly gain of 14.90 percent with September seeing a 10.98 percent rise.
In the United States, for the quarter and the month the Wilshire US Real Estate Investment Trust (REIT) IndexSM rose 13.35 percent and 4.54 percent, respectively. The Wilshire US Real Estate Securities IndexSM (RESI) gained 13.24 percent for the quarter and 4.60 percent for the month. The Wilshire Global REIT IndexSM posted 17.65 percent and 7.25 increases for the quarter and month. The Wilshire Global RESI IndexSM closed the quarter up 18.80 percent, with a 7.87 return for September.
|Index Name||Index Close||Point Change||Total Return % Change|
|Wilshire Global TMI||2,415.96||10.01%||15.04%||5.91%||10.63%||-6.34%||3.34%|
|Wilshire Global exUS Index||2,109.40||10.40%||17.14%||6.20%||10.09%||-6.42%||5.11%|
|Wilshire Europe Index||2,730.40||12.04%||20.26%||1.91%||5.54%||-9.29%||3.61%|
|Wilshire Asia / Pacific Index||1,288.82||8.37%||12.72%||8.46%||11.30%||-5.12%||4.95%|
|Wilshire Latin America Index||10,176.82||10.66%||20.88%||12.64%||26.53%||6.09%||18.49%|
|Wilshire Middle East & Africa Index||2,826.17||11.96%||20.64%||14.35%||19.21%||-3.91%||5.72%|
|United States||Europe||Middle East & Africa|
|Telecommunications Services||20.38||Consumer Discretionary||25.93||Consumer Discretionary||37.83|
|Consumer Discretionary||15.78||Telecommunications Services||23.00||Telecommunications Services||26.75|
|Consumer Staples||10.69||Consumer Staples||14.87||Financials||22.26|
|Health Care||8.74||Information Technology||14.19||Materials||14.37|
|Financials||5.04||Health Care||12.53||Health Care||5.67|
|Industrials||31.54||Consumer Staples||15.37||Telecommunications Services||17.70|
|Health Care||29.53||Industrials||14.46||Consumer Discretionary||17.35|
|Utilities||12.06||Telecommunications Services||10.58||Information Technology||11.99|
|Information Technology||10.35||Health Care||9.15||Utilities||11.48|
|Telecommunications Services||8.38||Utilities||2.98||Health Care||9.95|
|United States||Europe||Middle East & Africa|
|Information Technology||12.36%||Consumer Discretionary||17.27%||Consumer Discretionary||20.39%|
|Consumer Discretionary||12.30%||Information Technology||16.23%||Energy||16.81%|
|Consumer Staples||5.83%||Utilities||7.11%||Information Technology||9.56%|
|Utilities||3.13%||Telecommunications Services||6.67%||Health Care||8.59%|
|Financials||11.16%||Information Technology||10.10%||Information Technology||12.03%|
|Consumer Staples||8.87%||Health Care||6.02%||Consumer Staples||7.54%|
|Energy||8.16%||Telecommunications Services||5.30%||Telecommunications Services||7.24%|
For more information about the Wilshire Index Family please e-mail WilshireIndexes@wilshire.com.
*All values as of September 30, 2010. Index values are in price values. All returns are total returns and reflect float-adjusted market capitalization. Returns are annualized for periods greater than one year.
Wilshire Associates, a leading global, independent investment consulting and services firm, provides consulting services, analytics solutions and customized investment products to plan sponsors, investment managers and financial intermediaries. Its business units include, Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and Wilshire Private Markets.
The firm was founded in 1972, revolutionizing the industry by pioneering the application of investment analytics and research to investment management for the institutional marketplace. Wilshire also is credited with helping to develop the field of quantitative investment analysis that uses mathematical tools to analyze market risks. All other business units evolved from Wilshire's strong analytics foundation. Wilshire developed the Wilshire 5000 Total Market IndexSM, the first asset/liability models for pension funds, the first U.S. equity style metrics work and many other "firsts" as the firm grew to approximately 350 employees serving the investment needs of institutional and high net worth clients around the world.
Based in Santa Monica, California, Wilshire provides services to clients in more than 20 countries representing approximately 600 organizations. With ten offices on four continents, Wilshire Associates and its affiliates are dedicated to providing clients with the highest quality counsel, products and services. Wilshire is a registered service mark of Wilshire Associates Incorporated. Please visit www.wilshire.com for more information.