The ETF Portfolio Strategist: 2 Feb 2022

Total Return Expectations

Expected total returns for global markets and the Global Market Index (GMI) mostly ticked higher in January. The key driver: broad-based losses for most asset classes last month. Lower realized returns generally equate with higher expected returns.

For example, GMI’s long-run expected return edged up to 4.6% annualized last month, slightly above the 4.4%…