2023 – A stellar year for US equities delivering the 6th best annual return this century

The FT Wilshire 5000 delivered a 26.1% return in 2023

Here are six charts that capture some of the key market dynamics as the year unfolded:

Exhibit 1: There were 9 important inflection points in market performance over the course of the year

9 important inflection points in 2023 market performance

Exhibit 2: The Technology sectors contributed c.75% of the total market return (19.1%/26.1%)

Technology sectors contributed c.75% of the total market return

Exhibit 3: The almost 90% return from the ‘Mag 7’ stocks enabled the headline FT Wilshire 5000 index significantly outperform the Equal weighted index which returned 14.9%

Performance of Magnificent 7 stocks

Exhibit 4: The two largest stocks (Apple and Microsoft) closed out 2023 with a combined weighting of 12.3% - the highest level of concentration seen over the last 40 years

Weight of top 2 largest stocks in FT Wilshire 5000

Exhibit 5: Large Cap Growth Style outperformed Value by 35% in 2023 more than reversing the underperformance of 2022.Large Cap also significantly outperformed Small Cap over the year

Growth vs Value performance

Exhibit 6: The US benefitted the most from the contribution of PE expansion to market return in 2023

2023 global total return decomp

Source: Wilshire Indexes, Factset. Data as of December 31, 2023.

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