Risk v Return Analysis – fine wine outperforms FTSE, Silver, Gold and Art

Market analysts have recently reviewed the performance of FTSE against the collection of assets referred to as SWAG (silver, wine, art and gold). Liv-ex has measured market risk versus growth for the investments over the last twenty years and found fine wine leading the pack.

SWAG and FTSE : Risk v Return

Source: Liv-ex.com February 2017

In the twenty-year period studied fine wine delivered an average compound annual growth rate of 14.2% and the lowest annualised standard deviation of 8.2%. Gold delivered the second highest level of return but is slightly more volatile than fine wine and, whilst silver is in the ‘ball park’ in terms of growth it is considerably more variable in performance and shown to possess the highest level of risk of the assets reviewed. FTSE and fine art both delivered significantly lower average annual growth of 3 to 4% with FTSE performance slightly less volatile than gold and Art more.

For more information on the fine wine market performance at the start of 2017 and an in depth focus on the pending En Primeur season get your free copy of the new Vin-X Monthly Market Review.