DB vs. DC: asset mixes and returns

Average asset mix and annual returns of retirement plans by type, 1997-2011.

Asset mix Returns
Asset classDBDC DBDC
Large-cap stock29.0%33.0% 5.8%6.4%
Small-cap stock6.0%8.0% 7.7%8.2%
Foreign stock23.0%7.0% 5.7%7.0%
Employer stock0.0%18.0% n/a7.9%
Fixed income31.0%11.0% 7.4%6.1%
Stable value/GICs0.0%19.0% n/a4.6%
Cash2.0%3.0% 3.5%3.1%
Real estate, REITs & other real assets4.0%0.0% 9.5%n/a
Hedge funds2.0%0.0% 7.1%n/a
Private equity3.0%0.0% 11.9%n/a
Total 7.2%5.8%
Asset allocations might not total 100% due to rounding.
Source: Defined Contribution Institutional Investment Association

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