I'm trying to understand how to measure the growth of a particular stock index over a certain period of time, e.g. 5 years.
As far as I understand, for calculating the total growth, you need to do
((end - begin) / begin) * 100
begin the final and initial value (respectively) of the index in question, over the selected period of time (in this example 5 years from now)
According to google, comparing
S&P 500 (USA),
FTSE 100 (UK) and
DAX 30 (GER), from 5 years ago until now, I obtain:
((7344 - 6527) / 6527.0) * 100.0 = 12.51723609621572
((12468 - 9490) / 9490.) * 100. = 31.38040042149631
((2992 - 1982) / 1982.) * 100.0 = 50.95862764883956
This seems to be a nonsense. Are the above results correct?
If so, under which circumstances would it be better to invest in the
DAX 30 or
FTSE 100, given that their growth is far less than the
S&P 500? (Even taking into account tax free bank accounts in your country + avoid fees in changing currencies)