Recently, many people have been discussing the performance of different assets. Today, let's take a look at the situation in the A-shares market.

I compiled the gains and losses of four major indices from January 2010 to December 2025, covering these 15 years. Including the annual dividend yields, the final calculated annualized return is as follows: whether it's the large-cap or small- and mid-cap stocks, the annualized return is generally in the 4-5% range.

At first glance, it might seem that the returns are similar, but what's interesting here is—this result is based on a completely passive, long-term holding strategy. In other words, if you just buy and hold, the annualized return after 15 years will be roughly this number.

However, a characteristic of the A-shares market is that its style can fluctuate very dramatically. It's often the case that small-cap stocks outperform large-cap stocks for several consecutive years, then suddenly the trend reverses. This rotation phenomenon has a significant impact on short-term trading strategies. The returns experienced by investors entering at different stages can vary quite noticeably.

Looking at it from another perspective, what does a 4-5% annualized return mean? Considering the inflation rate, the real return space isn't that wide. This is also why more and more people are starting to pay attention to other asset classes—after all, in the long run, relying solely on index funds may find it difficult to beat inflation plus the rising cost of living.