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The Fastest Rising Asset Classes in 2023

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Fastest Rising Asset Classes in 2023

The Fastest Rising Asset Classes in 2023

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Many corners of the market have shown resilience despite persistent inflation and slowing economic growth in 2023. U.S. equities, international equities, and a variety of bonds have seen positive returns so far this year.

In the above graphic, we rank the top-performing asset classes to date with data from BlackRock.

Asset Class Performance, Ranked

Here’s how select asset classes have performed in 2023 as of May 31:

Asset Type2023 Return (as of May 31)10-Year Annualized Return
U.S. Equities9.8%11.9%
Europe Equities9.0%5.3%
Japan Equities8.8%5.3%
Investment Grade Credit2.8%1.6%
High Yield Bonds2.6%3.0%
Cash1.9%0.9%
Emerging Market Debt1.8%1.9%
Emerging Market Equities1.2%2.3%
Developing Market Gov. Debt0.9%-0.5%
Infrastructure0.8%6.1%
REITs-0.6%4.3%
Commodities-6.7%0.0%
China Equities-9.0%2.1%

After a troublesome 2022 for markets, you can see above that U.S. equities have rebounded the fastest in 2023. They are sitting at 9.8% returns year-to-date.

However, this has largely been a story of a few outperformers buoying the overall market. Nvidia with 159% returns, along with Meta (120%), Apple (36%), and Microsoft (37%) are among the companies with strong growth. Many of these companies are investing billions in artificial intelligence.

European equities, at 9% returns, have also seen steady performance. Investors have flocked to the market, given the tilt to value stocks during rising rates.

Globally, bonds fall roughly in the middle of the pack, while commodities have fallen 6.7% on the year so far. China’s equity market has faced headwinds amid strained economic ties with the U.S. and economic data falling under expectations.

Bull Market On the Horizon?

Tech funds saw a record $8.5 billion in weekly inflows as of May 31, 2023 driven by AI enthusiasm.

As investors pour into these megacap stocks, S&P 500 returns have rebounded almost 20% from their October lows, moving closer into bull market territory.

As it stands, investor optimism has increased across the broader market. The investor fear gauge hovered near its lowest point since February 2020. The CBOE Volatility Index (VIX) sank to 15, a significant drop from its average reading of 23 over the past year.

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Markets

The World’s Biggest Fashion Companies by Market Cap

LVMH Moët Hennessy Louis Vuitton (LVMH) is the industry’s biggest player by a wide margin.

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Bubble chart showing the world’s biggest fashion companies by market cap.

The World’s Biggest Fashion Companies by Market Cap

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Fashion is one of the largest industries globally, accounting for 2% of the global gross domestic product (GDP).

In this graphic, we use data from CompaniesMarketCap to showcase the world’s 12 largest publicly traded fashion companies, ranked by market capitalization as of Jan. 31, 2024.

LVMH Reigns Supreme

European countries dominate the list of the biggest fashion companies, with six in total. The U.S. boasts four companies, while Japan and Canada each have one.

LVMH Moët Hennessy Louis Vuitton (LVMH) is the industry’s biggest player by a wide margin. The company boasts an extensive portfolio of luxury brands spanning fashion, cosmetics, and liquor, including Marc Jacobs, Givenchy, Fendi, and Dior, the latter of which holds a 41% ownership stake in the global luxury goods company.

RankCountryNameMarket Cap (USD)
1🇫🇷 FranceLVMH421,600,000,000
2🇺🇸 United StatesNike153,830,000,000
3🇫🇷 FranceDior145,861,000,000
4🇪🇸 SpainInditex134,042,000,000
5🇺🇸 United StatesTJX Companies108,167,000,000
6🇯🇵 JapanFast Retailing81,489,917,976
7🇺🇸 United StatesCintas61,285,867,520
8🇨🇦 Canadalululemon57,267,998,720
9🇫🇷 FranceKering50,900,207,000
10🇺🇸 United StatesRoss Stores47,227,502,592
11🇩🇪 GermanyAdidas32,535,078,209
12🇸🇪 SwedenH&M25,564,163,571

As a result of the success of the company, in 2024, LVMH chairman Bernard Arnault overtook Elon Musk as the richest person in the world.

In second place, Nike generated 68% of its revenue in 2023 from footwear. One of the company’s most popular brands, the Jordan Brand, generates around $5 billion in revenue per year.

The list also includes less-known names like Inditex, a corporate entity that owns Zara, as well as several other brands, and Fast Retailing, a Japanese holding company that owns Uniqlo, Theory, and Helmut Lang.

According to McKinsey & Company, the fashion industry is expected to experience modest growth of 2% to 4% in 2024, compared to 5% to 7% in 2023, attributed to subdued economic growth and weakened consumer confidence. The luxury segment is projected to contribute the largest share of economic profit.

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