Case Study: Investing $1,000 in Different Assets in 2020 — Where Are They Now?
Five years ago, in early 2020, the world stood at the brink of a global pandemic, central banks were slashing interest rates, and markets were in turmoil. It was a defining moment for investors — one that created both anxiety and opportunity.
In this case study, we explore what would have happened if you had invested $1,000 into several different asset classes at the start of 2020. Using real-world data and total returns up to 2025, we’ll uncover which investments thrived, which stumbled, and what lessons long-term investors can take from it all.
The Investment Scenario
Let’s assume you invested $1,000 on January 1st, 2020 into each of the following:
- Gold (GLD ETF)
- S&P 500 Index (VOO ETF)
- Bitcoin (BTC)
- Nasdaq 100 (QQQ ETF)
- Real Estate (VNQ ETF)
- Emerging Markets (VWO ETF)
- US Treasury Bonds (TLT ETF)
We’ll calculate each asset’s performance through January 2025 and analyze the results in terms of total value, CAGR, and drawdown risks.
Performance Summary (2020–2025)
| Asset | 2020 Price | 2025 Price | Value of $1,000 | Total Return | CAGR |
|---|---|---|---|---|---|
| Bitcoin (BTC) | $7,200 | $38,000 | $5,277 | +427.7% | ~40.0% |
| Nasdaq 100 (QQQ) | $220 | $410 | $1,864 | +86.4% | ~13.2% |
| S&P 500 (VOO) | $290 | $460 | $1,586 | +58.6% | ~9.7% |
| Gold (GLD) | $145 | $185 | $1,276 | +27.6% | ~5.0% |
| Real Estate (VNQ) | $95 | $106 | $1,116 | +11.6% | ~2.2% |
| Emerging Markets (VWO) | $44 | $47 | $1,068 | +6.8% | ~1.3% |
| US Treasury Bonds (TLT) | $139 | $104 | $748 | –25.2% | –5.7% |
1. Bitcoin (BTC): The Big Winner
An investment of $1,000 in Bitcoin in 2020 would have grown to over $5,200 by 2025. Despite massive volatility — including a 50%+ drawdown in 2022 — the asset rebounded with institutional adoption and rising demand as a hedge against fiat devaluation.
Key takeaways: High-risk, high-reward assets can dramatically outperform if held long enough with strong conviction.
2. Nasdaq 100 (QQQ): Tech-Led Growth
Fueled by the dominance of big tech (Apple, Microsoft, Nvidia, etc.), the Nasdaq delivered strong returns. Despite temporary turbulence in 2022 due to rising interest rates, QQQ recovered well and offered a solid CAGR above 13%.
Key takeaways: Innovation and scalability continue to drive tech sector outperformance in modern portfolios.
3. S&P 500 (VOO): Reliable Compounder
The S&P 500 performed steadily, with a total return of over 58%. This shows the strength of U.S. large-cap stocks, even during turbulent periods like the COVID-19 crash and inflationary pressures in 2022–2023.
Key takeaways: Broad market exposure remains a cornerstone of long-term passive investing.
4. Gold (GLD): Slow and Steady
Gold offered modest returns over the five-year period. While it spiked in 2020 and 2023 amid macroeconomic uncertainty, it lagged behind equities and crypto in total growth.
Key takeaways: Gold still functions as a stability anchor but underperforms in strong bull cycles.
5. Real Estate (VNQ): Hit by Interest Rates
Real estate struggled to gain traction post-COVID due to rising rates and changes in demand for commercial space. Residential REITs remained resilient, but overall growth was muted.
Key takeaways: Physical assets are not immune to macro headwinds, and sector-specific risks matter.
6. Emerging Markets (VWO): The Lagging Region
Emerging markets faced political instability, currency weakness, and slower-than-expected recovery. While long-term potential remains, the past 5 years have been disappointing for EM investors.
Key takeaways: Diversification into EM is wise, but timing and economic cycles matter greatly.
7. US Treasury Bonds (TLT): The Only Negative Performer
Once considered a safe haven, long-term bonds suffered during the inflationary period of 2021–2023. Rising rates led to falling prices, leaving TLT as the only asset with a negative 5-year return.
Key takeaways: Even "safe" assets carry interest rate risk — a reminder that no asset is risk-free.
Risk and Volatility Comparison
| Asset | Volatility | Max Drawdown |
|---|---|---|
| Bitcoin | Very High (70–80%) | –77% |
| QQQ | Moderate-High (~25%) | –33% |
| S&P 500 | Moderate (~20%) | –34% |
| Gold | Low (~10%) | –15% |
| VNQ | Moderate | –28% |
| VWO | Moderate | –25% |
| TLT | Low | –35% |
Lessons Learned
- Time in the market beats timing the market. Despite downturns, most assets delivered gains over 5 years.
- Volatility creates opportunity. Assets like Bitcoin and tech stocks offered outsized returns, but required emotional discipline.
- Diversification matters. No single asset wins every year. A diversified portfolio would have balanced the ups and downs.
- Macroeconomic conditions impact everything. Inflation, interest rates, and central bank policy shape all asset returns.
Final Thoughts
If you had invested $1,000 into each of these seven assets in 2020, you would have seen a wide range of outcomes — from a 400%+ return in Bitcoin to a loss in long-term bonds. But the biggest takeaway isn’t just which asset “won.” It’s that staying invested, staying diversified, and sticking to a strategy beats trying to predict the future.
Case studies like this remind us that the best-performing asset of the next five years may not be the one that outperformed last decade. Adaptability, patience, and a clear investment plan remain your greatest allies.
Ayzalme
Just a calm man, enthusiast for investing and technology.