Source: MSCI, CCLA. The above data is just not annualized. Past performance is just not a reliable indicator of future returns. The value of investments can fall in addition to rise.
The data for Figure 2 above is presented in Table 3 below.
Column 1 of this table shows absolutely the performance of the MSCI World Quality Index, which consists of corporations with high returns on equity, stable year-over-year earnings growth and low leverage for the quarters ending on the dates shown. Banking giant JPMorgan, for instance, is just not included within the MSCI World Quality Index because, like many banks, it has high levels of debt.
Column 2 shows the relative performance of the MSCI World Quality Index versus the MSCI World Index. Column 3 shows the relative performance of the MSCI World Quality Index versus the MSCI World Growth Index. The MSCI Growth Index tracks stocks with high growth rates in sales, earnings per share and retained earnings. These include, for instance, Nvidia and Microsoft, but not Facebook parent Meta, as Meta’s growth is relatively low.
Columns 4 through 6 of Table 3 show the identical absolute and relative performance but for the one-year period ending on the desired date. Columns 7 to 12 show the identical data for five-year periods and 10-year periods, respectively.
Table 3: Quarterly, annual, five-year and ten-year performance (2008-2025). The longer the time-frame, the more quality stocks have outperformed the broader stock market and growth stocks.
