The NASDAQ returned 42.58% in 2020. Using a better calculation, which includes dividend reinvestment, the NASDAQ returned 42.99%.
The 2020 NASDAQ Return: Even in Tech You Should Reinvest
The above numbers assume you bought the NASDAQ index at the open on January 2nd, 2020 and sold at close on December 31, 2020. This is the same as "Year to Date" or YTD return if you check the last day of the year.
Prefer trying a "full year" of history? If you bought the closing price on December 31, 2019 and sold the closing price on December 31, 2020 the returns were 43.64% and 44.92%, respectively.
2020 NASDAQ Index Price Return
|Price From||Price||Dec 31 Close||Gain/Loss|
|Jan 2 Open||9039.46||12888.28||42.58%|
|Dec 31 Close||8972.60||12888.28||43.64%|
NASDAQ Reinvested Dividend Return in 2020
|Price From||Price||Dec 31||Gain/Loss|
Really, timing doesn't matter that much – but even in the historically tech-heavy NASDAQ, dividends matter. Even if you didn't reinvest your dividends, they're a real factor in returns.
Not that you had a rough time even if you lost your dividend checks though. The pandemic seemed to pull forward many company's digital plans. My company ran a survey: the typical firm moved their digital transformation plans up 6 years due to COVID-19.
Transformations or not, and even when this virus is in the past: Dividends matter.
Source on the 2020 NASDAQ Return Calculations
See NASDAQ returns in other years:
- 2019 NASDAQ Return
- 2018 NASDAQ Return
- 2017 NASDAQ Return
- 2016 NASDAQ Return
- 2015 NASDAQ Return
- 2014 NASDAQ Return
Any NASDAQ predictions for 2021?