The 2020 LATINA Style 50 Special Report
Assessing the LATINA Style
50 Report
LATINA Style 50 vs. S&P500 2019 Results
By Karen Vergara, CPA, Allgen Financial Advisors, Inc
Without a doubt no one could have predicted the tumultuous and
unprecedented times that we are currently living in, especially when
2019 was a year of growth and market records. As a Latina in the
financial industry, I ponder at the effect that both years will have on our Latino
population in terms of economic opportunities and challenges.
It is important to keep things in perspective and remember that the
ebbs-and-flows of the market are part of a functioning economic cycle and
although we are still awaiting how 2020 will end, I am pleased to report on the
LATINA Style 50 results for 2019.
Since 2001, Allgen Financial Advisors (www.allgenfinancial.com), a
Registered Investment Advisory Firm, has been comparing the returns of
companies in the LS50 to the stock market by using the S&P 500 index and
the results for this year are in.
In 2019, the S&P 500 had an average annual return of 28.9%, while
the companies in the LS50 had an average 28.6%, a difference of -.3%.
For the 19 years since this report has been commissioned, the LS50
has outperformed by offering a total average annual return of 10.78%, while
the S&P 500 has returned 8.43%, a positive difference of 2.35% during the
period.
To put these numbers into context, a hypothetical investment of
$100,000 in the LS50 in the beginning of 2001 would have resulted in a
final account balance of $516,111 while an equivalent investment in the
S&P500 would have resulted in a final account balance of $349,561 at the
end of 2019. That represents approximately an additional $167,000 for an
investor choosing to invest in the LS50 index versus the S&P500.
While this analysis is by no means comprehensive, as there are
additional variables that must be considered when making investment
decisions, it portrays the importance of investing for the long term since
market fluctuations are bound to occur.
I applaud the LS50 companies that undertake the work to ensure
investing in diversity and inclusion continue to be a worthwhile endeavor
and look forward to seeing how these companies perform during a year that
will be recorded in history books.
LS
Disclaimer
This analysis is based on available
data at the time of analysis. Some
company performances have been
omitted as they no longer exist
or were not publicly traded. This
analysis and returns are also based
on a yearly rebalancing of the
portfolio to take into account the
different companies that are chosen
as part of the index each year and an
equal weighting of each company. In
addition, the measured performance
and conclusions derived therein
reflect a retrospective look at market
Karen Vergara is a
performance as the study is
Financial Advisor at
conducted after the companies have
Allgen Financial
been selected. It is never prudent to
Advisors Inc.
invest based on historical stock
performance alone. In addition, the LS50 index is not a real market index
but rather a dynamic collection of companies as chosen yearly by LATINA
Style magazine. The rates of return and performance illustrated do not
reflect any costs associated with investing in either index.
As such, the above article should not be construed, nor is it written to
provide financial advice as individual situations may vary and past
performance is not indicative of future results. Any decision to invest in
equity markets should be consulted with a financial professional.
Want to comment or have any questions on this article? Email us at
info@latinastyle.com
24 www.latinastyle.com LATINAStyle V ol. 26, No. 4, 2020
/(www.allgenfinancial.com)
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