The 2021 LATINA Style 50 Special Report
Assessing the 2021 LATINA Style 50 Report
LS 50 VS S&P 500 2020 Results
By Karen Vergara, CPA
AllGen Financial Advisors, Inc
Across the globe 2020 was a year of reprioritization, in which organizations
were forced to reassess their practices in order to sustain their long-term
viability. In many instances, that meant companies changed the way they
did business to adapt to the changing and unpredictable circumstances presented.
I believe 2020 also taught us that as individuals, we are undoubtedly connected
to the organizations we are part of and the communities that we live in. Without
people, organizations and companies would not exist and understanding that simple
truth has made us stronger than ever.
Within our Latino community, we were witness to the innate resilience that helps
us move forward during difficult situations, like a pandemic. With that in mind,
seeing the results of the LS 50 for 2020 reminds me of that resilience and the
importance of looking at lessons we have learned from the past and present, in order
to help propel us forward.
Since 2001, AllGen Financial Advisors (www.allgenfinancial.com), a Registered
Investment Advisory Firm, has been comparing the returns of companies in the LS 50
to the stock market by using the S&P 500 index and the results for this year are in.
In 2020, the S&P 500 had an average annual return of 18.4%, while the
companies in the LS50 had an average -4.23%, a difference of 14.7%.
For the 20 years since this report has been commissioned, the LS 50 has
outperformed by offering a total average annual return of 10.03%, while the S&P
500 has returned 9.06%, a positive difference of .98% during the period.
To put these numbers into context, a hypothetical investment of $100,000 in the
LS 50 in the beginning of 2001 would have resulted in a final account balance of
$494,279.37 while an equivalent investment in the S&P500 would have resulted in
a final account balance of $422,196.39 at the end of 2020. That represents
approximately an additional $72,082.97 for an investor choosing to invest in the LS
50 index versus the S&P 500.
Although the LS 50 had negative results compared to the S&P 500 in 2020,
some companies in the list had outstanding positive returns as their sectors or industry
were not affected by the pandemic. On the other hand, companies in sectors such
as hospitality, travel and finances had a difficult year that resulted in negative returns.
All in all, this list represents the importance of diversification and as stated earlier, the
value of both re-prioritization and resilience as companies and individuals decide how
to move forward.
As always, I commend the work of the companies listed in this year’s LS 50
index in their continued effort to support and strengthen our Latina population during
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*This analysis is based on available data at the time of analysis. Some company performances have been omitted as they no longer exist or were not publicly traded.
This analysis and returns are also based on a yearly rebalancing of the portfolio to take into account the different companies that are chosen as part of the index
each year and an equal weighting of each company. In addition, the measured performance and conclusions derived therein reflect a retrospective look at market
performance as the study is conducted after the companies have been selected. It is never prudent to invest based on historical stock performance alone. In
addition, the LS50 index is not a real market index but rather a dynamic collection of companies as chosen yearly by LATINA Style magazine. The rates of return
and performance illustrated do not reflect any costs associated with investing in either index.
As such, the above article should not be construed, nor is it written to provide financial advice as individual situations may vary and past performance is not
indicative of future results. Any decision to invest in equity markets should be consulted with a financial professional.
24 www.latinastyle.com LATINAStyle V ol. 27, No. 4, 2021