{"id":2096943,"date":"2019-01-11T11:11:37","date_gmt":"2019-01-11T05:41:37","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=2096943"},"modified":"2019-01-11T11:11:37","modified_gmt":"2019-01-11T05:41:37","slug":"country-equity-index-drawdowns-vs-returns","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2019\/01\/11\/country-equity-index-drawdowns-vs-returns\/","title":{"rendered":"Country Equity Index Drawdowns vs. Returns"},"content":{"rendered":"<p>Previously, we saw how US Midcaps have out-performed Indian midcaps in dollar terms (<a href=\"https:\/\/stockviz.biz\/2018\/12\/05\/us-vs-indian-midcaps\/\">US vs. Indian Midcaps<\/a>.) But that is only one part of a bigger question: How do Indian equities stack up with the rest of the world?<\/p>\n<p>Here is a chart of peak drawdown (largest loss) vs. cumulative return for country equity total return NASDAQOMX indices:<br \/>\n<a href=\"https:\/\/github.com\/stockviz\/blog\/raw\/master\/dd%20vs%20returns\/NASDAQOMX.dd.vs.returns.2004-03-01.2018-12-31.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/github.com\/stockviz\/blog\/raw\/master\/dd%20vs%20returns\/NASDAQOMX.dd.vs.returns.2004-03-01.2018-12-31.png\" width=\"4200\" height=\"2400\" alt=\"NASDAQOMX.dd.vs.returns\" class=\"alignnone size-full\" \/><\/a><br \/>\n<small>India: red square. World: black triangle. Full key: <a href=\"https:\/\/github.com\/stockviz\/blog\/raw\/master\/country%20etfs\/return%20charts\/INDEX-NQ.list.2018-01-01.2018-12-31.png\" rel=\"noopener\" target=\"_blank\">here<\/a>.<\/small><\/p>\n<p>Sure, Indian equities have put up a decent show. However, they have by no means been the best market out there. Investors would have got similar returns but with a vastly lower drawdown if they had just bought a NASDAQ-100 ETF (XNDX on the chart, ETF ticker: QQQ). Moreover, diversifying and asset allocation strategies are cheaper in the US than in India &#8211; both in terms of management fees and tax impact. <\/p>\n<p>Related: <a href=\"https:\/\/stockviz.biz\/index.php\/2019\/01\/09\/funding-your-dollar-dreams\/\">Funding Your Dollar Dreams<\/a>.<\/p>\n<p><small>Source: NASDAQOMX data from Quandl.<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Previously, we saw how US Midcaps have out-performed Indian midcaps in dollar terms (US vs. Indian Midcaps.) But that is only one part of a bigger question: How do Indian equities stack up with the rest of the world? Here is a chart of peak drawdown (largest loss) vs. cumulative return for country equity total &hellip; <\/p>\n","protected":false},"author":2,"featured_media":2093053,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3471],"tags":[960],"class_list":["post-2096943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-insight","tag-returns","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2096943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2096943"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2096943\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/2093053"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2096943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2096943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2096943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}