From the colossal $109 trillion that towers over global GDP to the frenetic pace of $200 trillion in annual trading, the world's equity markets are not just economic barometers but the pulsating heart of capital itself, a truth illuminated by the staggering performance, concentration, and ownership trends of 2023.
Key Takeaways
- The global equity market capitalization reached $109 trillion as of the end of 2022, representing 95% of global GDP
- US equity market capitalization stood at $53.2 trillion in 2023, accounting for 48% of global total
- S&P 500 total market cap hit $40 trillion in mid-2024, driven by tech giants
- NYSE daily trading volume averaged 1.2 billion shares in 2023, totaling 300 billion shares annually
- Nasdaq average daily volume was 4.5 billion shares in 2023
- Global equity trading volume hit $200 trillion in 2023, up 10% YoY
- S&P 500 returned 24.2% total return in 2023
- Nasdaq Composite gained 43.4% in 2023, highest since 2020
- Dow Jones Industrial Average rose 13.7% in 2023
- VIX averaged 16.5 in 2023, down from 25.6 in 2022
- S&P 500 realized volatility was 13.4% annualized in 2023
- Nasdaq-100 volatility averaged 20.1% in 2023
- Tech sector allocation in S&P 500 reached 30% by end-2023
- Financials sector weight in S&P 500 was 13% in 2023
- Healthcare allocation 12.5% in S&P 500 end-2023
Global equity markets grew significantly in 2023, led by US tech giants and strong returns.
Investor Demographics
- Retail investors owned 25% of US equities in 2023, up from 15% in 2019
- Institutional ownership 80% of S&P 500 shares end-2023
- Women held 28% of brokerage accounts in US 2023
- Millennials (25-40) represented 35% of active US traders 2023
- Average age of US retail investor 51 in 2023
- 58% of Americans own stocks directly or indirectly in 2023
- Foreign ownership of US equities 18% ($9 trillion) end-2023
- Pension funds held 25% of global equities $20 trillion in 2023
- Hedge funds managed $4.3 trillion AUM in equities 2023
- ETFs held by retail 40% of total AUM $6 trillion US 2023
- Passive index funds ownership 50% S&P 500 end-2023
- Gen Z (18-24) stock ownership rose to 15% in US 2023
- High-net-worth individuals ($1M+) owned 35% US equities 2023
- Family offices allocated 28% to equities globally 2023 avg
- Sovereign wealth funds equities exposure $12 trillion 2023
- Insurance companies held 10% global equities $8 trillion 2023
- Corporate insiders owned 8% S&P 500 shares avg 2023
- ESG funds AUM $3 trillion equities 2023, 10% of total
- Robo-advisors managed $1.2 trillion retail equities US 2023
- Active vs passive: Passive 48% US equity fund AUM 2023
Investor Demographics Interpretation
While it's reassuring to see Main Street’s stake in the market climb to 25%, the whole game still feels like a high-stakes party thrown by institutions and aging Boomers, with Millennials day-trading in the corner, Gen Z cautiously arriving, and half the guests now just passively mirroring the playlist.
Major Indices Performance
- S&P 500 returned 24.2% total return in 2023
- Nasdaq Composite gained 43.4% in 2023, highest since 2020
- Dow Jones Industrial Average rose 13.7% in 2023
- FTSE 100 returned 3.7% in 2023 amid inflation pressures
- Nikkei 225 surged 28.2% in 2023, best year in a decade
- Shanghai Composite fell -3.7% in 2023 due to real estate crisis
- Hang Seng Index dropped -13.8% in 2023
- DAX 40 gained 20.3% in 2023
- CAC 40 returned 16.6% in 2023
- IBOVESPA Brazil rose 22.7% in 2023
- Nifty 50 India gained 20.0% in FY2023
- ASX 200 Australia returned 12.1% in 2023
- KOSPI Korea fell -4.6% in 2023
- TA-125 Tel Aviv rose 6.5% in 2023
- MOEX Russia index up 85% in 2023 despite sanctions (local currency)
- TOPIX Japan returned 25.1% in 2023
- SMI Switzerland gained 13.5% in 2023
- AEX Amsterdam returned 14.8% in 2023
- OMX Stockholm 30 up 15.2% in 2023
- IPC Mexico gained 19.1% in 2023
- S&P/TSX Composite Canada returned 8.1% in 2023
- Russell 2000 returned 16.9% in 2023 after 2022 losses
- MSCI World Index gained 22.4% in 2023
- MSCI Emerging Markets fell -9.8% in 2023
- STOXX Europe 600 returned 12.7% in 2023
- S&P BSE Sensex India up 18.4% in FY2023
Major Indices Performance Interpretation
The global stock market painted a starkly divided portrait in 2023, where a resounding party for developed markets, led by a tech-fueled Nasdaq spectacle, was gatecrashed by a sobering slump in China and emerging markets, proving that even in a year of impressive gains, not everyone gets an invitation to the rally.
Market Size and Capitalization
- The global equity market capitalization reached $109 trillion as of the end of 2022, representing 95% of global GDP
- US equity market capitalization stood at $53.2 trillion in 2023, accounting for 48% of global total
- S&P 500 total market cap hit $40 trillion in mid-2024, driven by tech giants
- European equity markets had a combined market cap of $15.6 trillion at year-end 2023
- China's A-share market capitalization was $10.8 trillion in 2023, surpassing Hong Kong
- India's equity market cap grew to $4.3 trillion by March 2024, up 25% YoY
- Japan’s equity market cap totaled $6.2 trillion in 2023, with TOPIX as benchmark
- Emerging markets equity cap reached $12 trillion in 2023, 11% of global total
- Russell 2000 small-cap market cap was $2.8 trillion end-2023
- Nasdaq-100 market cap exceeded $20 trillion in June 2024
- Global equity market cap-to-GDP ratio averaged 110% in 2023 across developed markets
- UK FTSE All-Share market cap stood at $3.1 trillion in 2023
- Brazil's B3 equity market cap was $1.0 trillion end-2023
- Australia's ASX 200 market cap reached $1.7 trillion in 2023
- South Korea's KOSPI market cap totaled $1.6 trillion in 2023
- Taiwan Stock Exchange market cap hit $2.1 trillion end-2023, led by semiconductors
- Canada's TSX market cap was $3.0 trillion in 2023
- Saudi Arabia's Tadawul market cap grew to $2.6 trillion by 2024
- Switzerland's SMI market cap stood at $1.8 trillion end-2023
- Netherlands AEX market cap was $1.2 trillion in 2023
- Sweden's OMX Stockholm 30 market cap reached $1.1 trillion end-2023
- Mexico's IPC market cap totaled $0.5 trillion in 2023
- South Africa's JSE All Share market cap was $0.7 trillion end-2023
- Global large-cap equity market cap dominated 85% of total at $92 trillion in 2023
- Mid-cap equities globally valued at $12 trillion end-2023
- Small-cap global market cap estimated at $5 trillion in 2023
- Tech sector equity market cap hit $18 trillion globally in 2023
- Financials sector global equity cap was $11 trillion end-2023
- Healthcare global equity market cap reached $7.5 trillion in 2023
- Consumer discretionary global cap totaled $6.8 trillion end-2023
Market Size and Capitalization Interpretation
In a global financial landscape where the US, led by its tech titans, often appears to be playing Monopoly with real money, the collective market value of the world's companies has swelled to mirror almost the planet's entire annual output, revealing a fascinating—and perhaps precarious—tango between Wall Street's exuberance and Main Street's economic reality.
Sector Allocations
- Tech sector allocation in S&P 500 reached 30% by end-2023
- Financials sector weight in S&P 500 was 13% in 2023
- Healthcare allocation 12.5% in S&P 500 end-2023
- Consumer Discretionary 10.2% weight in S&P 500 2023
- Industrials 8.7% in S&P 500 allocation 2023
- Communication Services 9.1% in S&P 500 end-2023
- Consumer Staples 6.2% weight S&P 500 2023
- Energy sector 4.5% in S&P 500 despite oil rally 2023
- Utilities 2.4% allocation S&P 500 end-2023
- Real Estate 2.3% in S&P 500 2023
- Materials 2.5% S&P 500 sector weight 2023
- Tech 28% in Nasdaq-100 end-2023
- Financials 18% in MSCI World 2023
- Energy 5% in STOXX Europe 600 end-2023
- Banks 12% weight in DAX 40 2023
- Autos 15% in Nikkei 225 end-2023
- Property 10% in Hang Seng despite decline 2023
- Tech 25% in KOSPI 2023 allocation
- Financials 22% in ASX 200 end-2023
- Commodities 20% in TSX Canada 2023
- Tech 40% in Taiwan Weighted Index end-2023
- Oil & Gas 25% in IBOVESPA Brazil 2023
- IT 15% in Nifty 50 India end-2023
- Banks 20% in FTSE 100 2023
- Healthcare 18% in SMI Switzerland end-2023
- Tech 35% in Nasdaq Composite 2023
- Magnificent 7 stocks 30% of S&P 500 market cap end-2023
Sector Allocations Interpretation
The modern investor's map shows a world dotted with tech monopolies, financial institutions, and healthcare hubs, proving that our global portfolio is now a bet on digital life, money, medicine, and the occasional defiant tank of gas.
Trading Volume and Turnover
- NYSE daily trading volume averaged 1.2 billion shares in 2023, totaling 300 billion shares annually
- Nasdaq average daily volume was 4.5 billion shares in 2023
- Global equity trading volume hit $200 trillion in 2023, up 10% YoY
- Shanghai Stock Exchange annual turnover was 180 trillion CNY ($25 trillion USD) in 2023
- Tokyo Stock Exchange yearly trading value reached 800 trillion JPY ($5.5 trillion USD) in FY2023
- Euronext platforms recorded 9.5 trillion EUR in trading volume for 2023
- LSE annual equity turnover was 3.2 trillion GBP ($4 trillion USD) in 2023
- Hong Kong Stock Exchange turnover totaled 42 trillion HKD ($5.4 trillion USD) in 2023
- BSE and NSE combined India turnover 500 trillion INR ($6 trillion USD) in FY2023
- B3 Brazil annual equity turnover 15 trillion BRL ($3 trillion USD) in 2023
- ASX Australia yearly turnover 4.5 trillion AUD ($3 trillion USD) in 2023
- KRX Korea annual trading volume 3,500 trillion KRW ($2.6 trillion USD) in 2023
- TWSE Taiwan turnover totaled 60 trillion TWD ($1.9 trillion USD) in 2023
- TSX Canada annual equity volume 1.2 trillion CAD ($0.9 trillion USD) in 2023
- Tadawul Saudi turnover reached 2.5 trillion SAR ($0.67 trillion USD) in 2023
- SIX Swiss Exchange yearly volume 1.8 trillion CHF ($2 trillion USD) in 2023
- Deutsche Boerse Xetra turnover 2.1 trillion EUR in 2023
- BME Spain annual equity turnover 0.8 trillion EUR in 2023
- JSE South Africa turnover 4.5 trillion ZAR ($0.25 trillion USD) in 2023
- S&P 500 average daily volume 4.2 million shares in 2023
- Dow Jones Industrial Average daily volume averaged 350 million shares in 2023
- Russell 3000 total annual volume exceeded 1 trillion shares in 2023
- Options trading volume on US equities hit 10 billion contracts in 2023
- ETF trading volume globally $12 trillion in 2023
- Dark pool trading accounted for 15% of US equity volume in 2023 (450 billion shares)
- Retail trading volume represented 25% of total US equity volume in 2023
- High-frequency trading share of US volume was 50% in 2023
Trading Volume and Turnover Interpretation
The sheer magnitude of trillions sloshing through global markets daily reveals a financial circulatory system of astonishing vigor, where every frantic trade—from a retail investor's hopeful click to a supercomputer's microsecond arbitrage—collectively forms the pulse of modern capitalism.
Volatility and Risk Metrics
- VIX averaged 16.5 in 2023, down from 25.6 in 2022
- S&P 500 realized volatility was 13.4% annualized in 2023
- Nasdaq-100 volatility averaged 20.1% in 2023
- MOVE bond volatility index averaged 85 in 2023, impacting equities
- Global equity implied volatility (VSTOXX) averaged 18.2 in 2023
- Beta of S&P 500 to VIX was 1.2 on average in 2023
- Sharpe ratio for S&P 500 was 1.45 in 2023
- Maximum drawdown for Nasdaq in 2023 was -10.2% (Oct peak to trough)
- Equity put/call ratio averaged 0.65 in US markets 2023
- CVIX (currencies vol) correlation to equity vol was 0.45 in 2023
- Skew index for S&P 500 averaged 125 in 2023, indicating tail risk premium
- Realized vol for Euro Stoxx 50 was 15.8% in 2023
- Nikkei volatility index (NVIX) averaged 22.4 in 2023
- Beta of emerging markets to US vol was 1.1 in 2023
- Credit spreads (HY vs IG) averaged 350bps in 2023
- S&P 500 1% downside days occurred 12 times in 2023
- Implied-realized vol gap for S&P 500 averaged 2.5% in 2023
- GARCH(1,1) forecast vol for DJIA was 12% end-2023
- Contango in VIX futures averaged 5% in 2023
- Volatility of volatility (VVIX) averaged 85 in 2023
- Sector vol: Tech 18%, Energy 25% avg in 2023 US
- Correlation S&P vol to 10Y Treasury yield 0.35 in 2023
- Max intraday vol for S&P 500 was 4.2% on Mar 13, 2023
- Value at Risk (95%) for MSCI World 1.8% daily avg 2023
- Expected Shortfall (95%) for Nasdaq 2.5% daily in 2023
Volatility and Risk Metrics Interpretation
In the tranquility of 2023's calm, fear took a more expensive holiday, with investors quietly paying premium insurance for rare storms while stocks sailed smoothly on a sea of eerily compressed volatility.
Sources & References
- Reference 1MCKINSEYmckinsey.comVisit source
- Reference 2SIBLISRESEARCHsiblisresearch.comVisit source
- Reference 3SPGLOBALspglobal.comVisit source
- Reference 4ECBecb.europa.euVisit source
- Reference 5WINDwind.com.cnVisit source
- Reference 6NSEINDIAnseindia.comVisit source
- Reference 7JPXjpx.co.jpVisit source
- Reference 8MSCImsci.comVisit source
- Reference 9FTSERUSSELLftserussell.comVisit source
- Reference 10NASDAQnasdaq.comVisit source
- Reference 11DATAdata.worldbank.orgVisit source
- Reference 12LSEGlseg.comVisit source
- Reference 13B3b3.com.brVisit source
- Reference 14ASXasx.com.auVisit source
- Reference 15GLOBALglobal.krx.co.krVisit source
- Reference 16TWSEtwse.com.twVisit source
- Reference 17TSXtsx.comVisit source
- Reference 18SAUDIEXCHANGEsaudiexchange.saVisit source
- Reference 19SIX-GROUPsix-group.comVisit source
- Reference 20EURONEXTeuronext.comVisit source
- Reference 21NASDAQOMXNORDICnasdaqomxnordic.comVisit source
- Reference 22BMVbmv.com.mxVisit source
- Reference 23JSEjse.co.zaVisit source
- Reference 24STATISTAstatista.comVisit source
- Reference 25NYSEnyse.comVisit source
- Reference 26WORLD-EXCHANGESworld-exchanges.orgVisit source
- Reference 27ENGLISHenglish.sse.com.cnVisit source
- Reference 28LONDONSTOCKEXCHANGElondonstockexchange.comVisit source
- Reference 29HKEXhkex.com.hkVisit source
- Reference 30BOERSE-FRANKFURTboerse-frankfurt.deVisit source
- Reference 31BOLSASYMERCADOSbolsasymercados.esVisit source
- Reference 32CBOEcboe.comVisit source
- Reference 33ETFGIetfgi.comVisit source
- Reference 34FINRAfinra.orgVisit source
- Reference 35SIPCLEARINGHOUSEsipclearinghouse.comVisit source
- Reference 36TABBFORUMtabbforum.comVisit source
- Reference 37FINANCEfinance.yahoo.comVisit source
- Reference 38INDEXESindexes.nikkei.co.jpVisit source
- Reference 39FINANCEfinance.naver.comVisit source
- Reference 40TASEtase.co.ilVisit source
- Reference 41MOEXmoex.comVisit source
- Reference 42LIVElive.euronext.comVisit source
- Reference 43STOXXstoxx.comVisit source
- Reference 44BSEINDIAbseindia.comVisit source
- Reference 45FREDfred.stlouisfed.orgVisit source
- Reference 46PORTFOLIOVISUALIZERportfoliovisualizer.comVisit source
- Reference 47JPMORGANjpmorgan.comVisit source
- Reference 48BESPOKEPREMIUMbespokepremium.comVisit source
- Reference 49INVESTINGinvesting.comVisit source
- Reference 50BARCHARTbarchart.comVisit source
- Reference 51BLOOMBERGbloomberg.comVisit source
- Reference 52GOLDMANSACHSgoldmansachs.comVisit source
- Reference 53FIDELITYfidelity.comVisit source
- Reference 54SCHWABschwab.comVisit source
- Reference 55GALLUPgallup.comVisit source
- Reference 56TREASURYtreasury.govVisit source
- Reference 57THINKINGAHEADINSTITUTEthinkingaheadinstitute.orgVisit source
- Reference 58BARCLAYHEDGEbarclayhedge.comVisit source
- Reference 59ETFetf.comVisit source
- Reference 60BLACKROCKblackrock.comVisit source
- Reference 61EDELMANFINANCIALENGINESedelmanfinancialengines.comVisit source
- Reference 62CAPGEMINIcapgemini.comVisit source
- Reference 63EYey.comVisit source
- Reference 64SWFINSTITUTEswfinstitute.orgVisit source
- Reference 65IAMFiamf.orgVisit source
- Reference 66MORNINGSTARmorningstar.comVisit source