. Often called the "benchmark of global stocks," it is a favorite for passive investors seeking broad exposure. But how does it actually perform over decades of market cycles? This backtest examines the numbers from 1970 to 2026 to see if the reality matches the reputation. Performance Summary (1970 – 2026)
| Metric | Value | |--------|-------| | Total Return (cumulative) | ~1,840% | | Annualized Return (CAGR) | 8.1% | | Annualized Volatility | 15.2% | | Sharpe Ratio (risk-free = 3% avg) | 0.34 | | Maximum Drawdown | -52.7% (Oct 2007 – Feb 2009) | | Worst Year | -40.3% (2008) | | Best Year | +36.2% (1997) | | Positive years | 28 out of 39 (~72%) | msci world backtest
In this article, we will run a detailed, data-driven backtest of the MSCI World Index (Net Return) from 1987 to the present. We will analyze rolling returns, drawdowns, correlations, and the impact of currency hedging. By the end, you will understand not just what the index returned, but why —and how to use backtest data to build better global portfolios. This backtest examines the numbers from 1970 to
When investors seek an , they are usually trying to answer one of two questions: By the end, you will understand not just
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