# How Alibaba Group Holding (BABA) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/baba
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on BABA alone. It places BABA (Alibaba Group Holding Limited) against 19 popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where BABA stands in the market, and of the alternatives worth a closer look.

Period covered: BABA's full trading record, from September 2014 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** BABA has gone against the market, falling 21.7% over the past 6 months while the S&P 500 rose 9.1%. The slide is BABA's own: it is 63.6% below its high, against 1.3% for the S&P 500.
- **Stock or market?:** BABA's 9.7% fall over the past 3 months is part of a broader e-commerce sell-off: the e-commerce ETF KWEB (KraneShares CSI China Internet ETF) fell 11.3%, with PDD (down 5.1%) and SE (Sea, down 23.9%). Its e-commerce peers did not move as one over the past 3 months: SHOP (Shopify) rose 39.4%, while BIDU (Baidu) fell 26.7%.
- **Past 1 to 3 years:** Over the past year, BABA fell 36.8% while the S&P 500 rose 15.8%. The same gap shows up over 3 years (44.5% against 89.3%). Even so, BABA lagged its e-commerce peers in 2023, then moved up the pack in 2025.
- **Long term:** BABA turned $10,000 into $11,100 over the past decade, against $42,100 in the S&P 500. BABA's 10-year return of 11.2% puts it behind 80% of the stocks worth at least $300 million with that much history. The S&P 500 returned 321%.
- **In a crash:** BABA fell harder than the S&P 500 in three of four sell-offs. The Covid crash was the exception: BABA fell 20.6%, less than the S&P 500's 33.7%.
- **Diversification:** BABA is a real diversifier: a correlation of 0.15 with the S&P 500 over 5 years and 0.14 with the total US market, less closely than 91% of stocks worth at least $300 million. On the flip side, over 10 years, BABA's beta versus the S&P 500 was 0.65: in the S&P 500's rising months it gained 74% as much as the index, and in falling months it lost 1.4 times as much.
- **Better options**
  - **Popular alternatives:** WMT (Walmart), AMZN (Amazon.com) and EBAY earned more than BABA with less volatility over the past 5 years. WMT returned 20.8% a year at 22.6% volatility, against a loss of 8.2% a year at 51.3%.
  - **Nearby categories and themes:** GOOG (Alphabet, internet services) and MSFT (Microsoft, software) earned more than BABA with less volatility over the past 5 years. GOOG returned 19.0% a year at 32.0% volatility, against a loss of 8.2% a year at 51.3%.
  - **Whole market:** 2,550 of the 3,633 stocks and funds worth at least $500 million earned more than BABA with less volatility over the past 5 years, among them AAPL (Apple), GOOG (Alphabet) and MSFT (Microsoft).

## How much would $10,000 in BABA have grown?

This chart tracks a hypothetical $10,000 investment in BABA over the past 12 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of BABA over the same span and BABA's popular alternatives, among those that traded for the entire period.

- $10,000 invested in BABA at the end of September 2014 would have grown to $12,859 by September 2026, less than the $47,240 it would have become in SPY, an S&P 500 fund.
- Six of the eight other investments on the chart ended ahead of BABA, and MELI finished highest, at $160,911.

## BABA at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- BABA is still 63.6% below its all-time high.
- BABA's deepest decline since it began trading in 2014 was 80.1%, from October 2020 to October 2022. It has not yet climbed back to that peak.
- Over 11 full calendar years, BABA's best was 2017, when it returned 96.4%, and its worst was 2021, when it lost 49.0%. It lost money in five of those years.

- Type: Stock, Consumer Discretionary (Specialty Retail)
- Trading since: September 19, 2014
- Market value: $270B
- Volatility (5 years): 51.3%; Sharpe ratio: 0.08
- Worst decline ever: −80.1%, from October 27, 2020 to October 24, 2022; not yet back at its high

| Period | BABA total return |
| --- | --- |
| 1 month | −6.1% |
| 3 months | −9.7% |
| 6 months | −21.7% |
| year to date | −29.6% |
| 1 year | −36.8% |
| 3 years | +44.5% |
| 5 years | −34.8% |
| 10 years | +11.2% |

## BABA against the whole market

Where BABA ranks among every stock and fund, and what across the market has done better.

### How does BABA rank among all stocks?

This section ranks BABA on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- BABA's 1-year return ranks in the bottom 10% of the 3,287 stocks worth at least $300 million with 1 year of history.

| Measure | BABA | Rank |
| --- | --- | --- |
| 1-year return | −36.8% | 2,951 of 3,287 (top 90%) |
| 3-year return | +44.5% | 1,635 of 3,017 (top 55%) |
| 5-year return | −34.8% | 2,229 of 2,893 (top 78%) |
| 10-year return | +11.2% | 1,763 of 2,202 (top 81%) |
| Volatility, 5 years | 51.3% | 1,974 of 2,893 (top 69%) |
| Sharpe ratio, 5 years | 0.08 | 2,160 of 2,893 (top 75%) |
| Worst decline, past 10 years | −80.1% | 1,644 of 2,187 (top 76%) |

### What has beaten BABA on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 1,557 stocks and 993 ETFs worth at least $500 million sit in the green region: each earned more than BABA over the past 5 years with smaller price swings. That is 70% of the 3,633 screened.
- Among those with at least half BABA's swings, FIX has the best return for its risk: 77.0% a year at 46.7% volatility, 9% less than BABA's 51.3%, and a Sharpe ratio (return above cash per unit of volatility) of 1.46 against 0.08 for BABA.
- Among BABA's popular alternatives, WMT, EBAY and AMZN are in the region. WMT earned 20.8% a year against a loss of 8.2% a year for BABA, at 22.6% volatility, 56% less than BABA's 51.3%.

### Is there a better investment than BABA?

The table below lists investments that beat BABA over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among BABA's popular alternatives, WMT, AMZN and EBAY earned more than BABA with less volatility over the past 5 years. WMT returned 20.8% a year at 22.6% volatility, against a loss of 8.2% a year at 51.3%.
- Looking beyond its popular alternatives, GOOG (internet services) and MSFT (software) earned more than BABA with less volatility over the past 5 years. GOOG returned 19.0% a year at 32.0% volatility, against a loss of 8.2% a year at 51.3%.
- Across the whole market, 2,550 of the 3,633 stocks and funds worth at least $500 million earned more than BABA with less volatility over the past 5 years, among them AAPL, GOOG and MSFT.

The 15 strongest of 2,550 investments that beat BABA over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with BABA | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BABA: Alibaba Group Holding Limited (this page) |  | −8.2% | 51.3% | 0.08 | −80.1% | +11.2% |  |  |
| [BIL](https://easycompare.io/research/bil): State Street SPDR Bloomberg 1-3 Month T-Bill ETF | Treasury Bonds | +3.7% | 0.3% | 14.05 | −0.2% | +25.8% | 0.19 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [LLY](https://easycompare.io/research/lly): Eli Lilly and Company | Pharmaceuticals | +40.7% | 32.8% | 1.21 | −34.5% | +1,807% | -0.11 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [MRK](https://easycompare.io/research/mrk): Merck & Co., Inc. | Pharmaceuticals | +16.3% | 24.8% | 0.74 | −43.4% | +241% | -0.09 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [AMGN](https://easycompare.io/research/amgn): Amgen Inc. | Biotechnology | +19.6% | 24.9% | 0.85 | −24.9% | +266% | 0.04 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| FLRT: Pacer Aristotle Pacific Floating Rate High Income ETF | Financials | +6.0% | 2.3% | 2.55 | −21.0% | +58.0% | 0.21 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | Gold | +17.7% | 18.9% | 0.96 | −26.4% | +213% | 0.43 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| FLOT: iShares Floating Rate Bond ETF | Floating Rate Bonds | +4.5% | 1.8% | 2.48 | −13.5% | +35.9% | 0.00 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VTIP](https://easycompare.io/research/vtip): Vanguard Short-Term Inflation-Protected Securities ETF | Treasury Bonds | +2.7% | 2.9% | 0.94 | −6.3% | +32.7% | 0.12 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VZ](https://easycompare.io/research/vz): Verizon Communications Inc. | Integrated Telecommunications | +2.7% | 22.9% | 0.23 | −41.2% | +55.8% | 0.30 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [RY](https://easycompare.io/research/ry): Royal Bank of Canada | Banks | +17.3% | 18.2% | 0.97 | −40.0% | +352% | 0.15 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [PBR-A](https://easycompare.io/research/pbr-a): Petróleo Brasileiro S.A. - Petrobras | Integrated Oil & Gas | +51.8% | 37.5% | 1.31 | −71.7% | +768% | 0.03 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [BSV](https://easycompare.io/research/bsv): Vanguard Short-Term Bond ETF | Short-Term Bonds | +1.7% | 2.8% | 0.63 | −8.5% | +20.5% | 0.28 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VCSH](https://easycompare.io/research/vcsh): Vanguard Short-Term Corporate Bond ETF | Investment Grade Bonds | +2.3% | 2.9% | 0.80 | −12.9% | +28.6% | 0.31 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [HWM](https://easycompare.io/research/hwm): Howmet Aerospace Inc. | Aerospace & Defense | +47.3% | 32.5% | 1.36 | −68.9% | +1,028% | 0.02 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [CAH](https://easycompare.io/research/cah): Cardinal Health, Inc. | Health Care Distribution | +42.1% | 24.7% | 1.55 | −46.1% | +349% | -0.20 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## BABA against its popular alternatives

The investments people most often weigh against BABA, compared period by period and year by year.

### How do BABA's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Eight of the 19 popular alternatives, led by WMT, EBAY and AMZN, were both more rewarding and calmer than BABA over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, BABA returned -8.2% a year, less than the S&P 500's 12.7%, with higher volatility (51.3% against 17.1%).

### Has BABA consistently beaten its popular alternatives?

This section compares BABA with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Eight of the 19 popular alternatives, led by SHOP, MELI and AMZN, outperformed BABA in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- SHOP, MELI and AMZN outperformed BABA in every long-term period and in all but one short-term period, the most consistent record in the group.
- WMT, EBAY and AMZN earned more for the risk they took than BABA (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of BABA | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| BABA: Alibaba Group Holding Limited (this page) | −36.8% | +44.5% | −34.8% | +11.2% |  |  | 0.08 |
| [SHOP](https://easycompare.io/research/shop): Shopify Inc. | +5.3% | +239% | +16.6% | +3,916% | 5/5 short-term, 3/3 long-term | all-weather | 0.38 |
| [MELI](https://easycompare.io/research/meli): MercadoLibre, Inc. | −10.6% | +60.7% | +17.2% | +1,002% | 5/5 short-term, 3/3 long-term | all-weather | 0.31 |
| [AMZN](https://easycompare.io/research/amzn): Amazon.com, Inc. | +21.3% | +110% | +53.8% | +548% | 5/5 short-term, 3/3 long-term | all-weather | 0.42 |
| [WMT](https://easycompare.io/research/wmt): Walmart Inc. | +11.0% | +130% | +158% | +508% | 5/5 short-term, 3/3 long-term | all-weather | 0.96 |
| [EBAY](https://easycompare.io/research/ebay): eBay Inc. | +28.3% | +213% | +74.2% | +374% | 5/5 short-term, 3/3 long-term | all-weather | 0.50 |
| W: Wayfair Inc. | +36.6% | +159% | −54.2% | +213% | 5/5 short-term, 2/3 long-term | consistent | 0.21 |
| ZTO: ZTO Express (Cayman) Inc. | +7.5% | −5.6% | −27.7% | +43.8% | 4/5 short-term, 2/3 long-term | consistent | 0.02 |
| MCHI: iShares MSCI China ETF | −19.0% | +34.4% | −21.4% | +26.8% | 4/5 short-term, 2/3 long-term | consistent | -0.01 |
| ETSY: Etsy, Inc. | +22.5% | +34.7% | −62.5% | +511% | 5/5 short-term, 1/3 long-term |  | -0.08 |
| JD: JD.com, Inc. | −18.0% | +20.2% | −64.3% | +14.4% | 4/5 short-term, 1/3 long-term |  | -0.14 |
| VIPS: Vipshop Holdings Limited | −29.1% | −2.1% | +14.8% | +3.7% | 4/5 short-term, 1/3 long-term |  | 0.31 |
| TCOM: Trip.com Group Limited | −43.5% | +26.1% | +29.8% | −14.3% | 2/5 short-term, 1/3 long-term |  | 0.35 |
| [PDD](https://easycompare.io/research/pdd): PDD Holdings Inc. | −38.0% | −20.6% | −17.9% | — | 2/5 short-term, 1/3 long-term |  | 0.26 |
| GDS: GDS Holdings Limited | −32.2% | +136% | −63.5% | — | 1/5 short-term, 1/3 long-term |  | 0.18 |
| [SE](https://easycompare.io/research/se): Sea Limited | −51.5% | +80.3% | −77.7% | — | 1/5 short-term, 1/3 long-term |  | -0.14 |
| VNET: VNET Group, Inc. | −56.2% | +47.5% | −78.7% | −43.4% | 0/5 short-term, 1/3 long-term |  | 0.13 |
| YMM: Full Truck Alliance Co. Ltd. | −28.1% | +38.1% | −44.0% | — | 5/5 short-term, 0/3 long-term |  | 0.14 |
| BIDU: Baidu, Inc. | −34.1% | −24.4% | −55.5% | −54.0% | 1/5 short-term, 0/3 long-term |  | -0.06 |
| CPNG: Coupang, Inc. | −54.8% | −18.9% | −50.3% | — | 1/5 short-term, 0/3 long-term |  | -0.01 |

### How did BABA do year by year?

This table shows each investment's total return in every full calendar year since 2015, along with where BABA ranked among its popular alternatives each year.

- Among its popular alternatives, SHOP came out ahead of BABA most often, in eight of the ten years both traded.
- BABA finished ahead of the S&P 500 in three of its 11 full calendar years.
- Ranked against its popular alternatives each year, BABA finished in the top quarter in one of 11 years and in the bottom quarter in two. In 2025, it ranked 3 of 20.

| Year | BABA | SPY |
| --- | --- | --- |
| 2025 | +75.8% | +17.7% |
| 2024 | +11.8% | +24.9% |
| 2023 | −10.8% | +26.2% |
| 2022 | −25.9% | −18.2% |
| 2021 | −49.0% | +28.7% |
| 2020 | +9.7% | +18.3% |
| 2019 | +54.7% | +31.2% |
| 2018 | −20.5% | −4.6% |
| 2017 | +96.4% | +21.7% |
| 2016 | +8.1% | +12.0% |

## Risk and diversification

How BABA has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were BABA's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In four of BABA's five worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: BABA fell 80.1% from October 2020 to October 2022, while the S&P 500 rose 15.3%.
- The longest climb back to a previous high took 20 months, after BABA fell 51.8% from November 2014 to September 2015.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −80.1% | October 27, 2020 | October 24, 2022 | not yet | +15.3% | 2022 bear market |
| −51.8% | November 10, 2014 | September 28, 2015 | May 9, 2017 | −6.0% | 2015 China and oil sell-off |
| −38.1% | June 14, 2018 | January 3, 2019 | December 20, 2019 | −11.1% | late-2018 sell-off |
| −23.5% | January 13, 2020 | March 23, 2020 | July 6, 2020 | −31.6% | Covid crash |
| −18.4% | January 26, 2018 | April 6, 2018 | June 4, 2018 | −9.0% | February 2018 volatility shock |

### How did BABA do in stock market crashes?

This section measures how far BABA, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- BABA fell further than the S&P 500 in five of the six crashes it has traded through. The clearest case was the 2022 bear market, when BABA fell 45.1% and the S&P 500 fell 24.5%.
- Among its popular alternatives, WMT held up best, falling less than BABA in all six crashes they both traded through.
- BABA began trading after the 2008 financial crisis, but six of its popular alternatives lived through it. The mildest fall among them was WMT's 26.2%, against 55.2% for the S&P 500.

| Crash | Dates | BABA fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | not trading | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | not trading | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | not trading | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −29.1% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −7.3% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −20.7% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −20.6% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −45.1% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −4.7% | −3.4% |

### How closely does BABA move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Nine of the 13 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than BABA's 0.53, led by WMT, MELI and SHOP.
- WMT took just 36% of the S&P 500's losses, against 140% for BABA, while still keeping 74% of its gains.
- Over the past 10 years, BABA captured 74% of the S&P 500's gains in rising months and 140% of its losses in falling months, with a beta of 0.65. Its share of the market's losses was larger than its share of the gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| BABA: Alibaba Group Holding Limited (this page) | 74.0% | 140% | 0.65 |
| [SHOP](https://easycompare.io/research/shop): Shopify Inc. | 233% | 203% | 2.09 |
| [MELI](https://easycompare.io/research/meli): MercadoLibre, Inc. | 135% | 111% | 1.44 |
| [AMZN](https://easycompare.io/research/amzn): Amazon.com, Inc. | 134% | 139% | 1.31 |
| [WMT](https://easycompare.io/research/wmt): Walmart Inc. | 74.0% | 36.0% | 0.53 |
| [EBAY](https://easycompare.io/research/ebay): eBay Inc. | 113% | 133% | 1.23 |
| W: Wayfair Inc. | 230% | 356% | 3.06 |
| MCHI: iShares MSCI China ETF | 49.0% | 81.0% | 0.51 |
| ETSY: Etsy, Inc. | 133% | 148% | 1.76 |
| JD: JD.com, Inc. | 51.0% | 92.0% | 0.57 |
| VIPS: Vipshop Holdings Limited | 39.0% | 81.0% | 0.63 |
| TCOM: Trip.com Group Limited | 42.0% | 96.0% | 0.58 |
| VNET: VNET Group, Inc. | 23.0% | 71.0% | 0.25 |
| BIDU: Baidu, Inc. | 56.0% | 159% | 0.79 |

### What diversifies BABA?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in BABA into CAH would have cut the portfolio's volatility by 21% over the past 5 years and raised its annual return (-5.1% for BABA alone, +5.3% for the mix).
- FIX made money in five of the five calendar years in which BABA lost money.
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of BABA over the past 5 years, with correlations of 0.27 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with BABA | 5Y return | Volatility | Sharpe | Rose in BABA's 5 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.27 | +119% | 11.1% | 1.48 | 3 of 5 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.02 | +225% | 19.1% | 1.34 | 4 of 5 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.12 | +101% | 14.5% | 1.04 | 3 of 5 |
| HDV: iShares Core High Dividend ETF | 0.23 | +83.3% | 13.0% | 1.00 | 3 of 5 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.05 | +323% | 36.9% | 0.97 | 2 of 5 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.20 | +85.0% | 13.8% | 0.96 | 3 of 5 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.43 | +126% | 18.9% | 0.96 | 1 of 5 |
| SPMO: Invesco S&P 500 Momentum ETF | -0.07 | +136% | 20.8% | 0.93 | 2 of 5 |

## Common questions

### What was BABA's worst drawdown?

BABA's deepest decline since it began trading in 2014 was 80.1%, from October 2020 to October 2022. It has not yet climbed back to that peak. Because BABA launched in September 2014, that record does not include the dot-com bust, the 2008 financial crisis or two other sell-offs.

### What were BABA's best and worst years?

Over 11 full calendar years, BABA's best year was 2017, when it returned 96.4%. Its worst was 2021, with a return of -49.0%.

### Is there a better investment than BABA?

Among BABA's popular alternatives, WMT, AMZN and EBAY earned more than BABA with less volatility over the past 5 years. WMT returned 20.8% a year at 22.6% volatility, against a loss of 8.2% a year at 51.3%. Looking beyond its popular alternatives, GOOG (internet services) and MSFT (software) earned more than BABA with less volatility over the past 5 years. GOOG returned 19.0% a year at 32.0% volatility, against a loss of 8.2% a year at 51.3%.

### Is BABA more volatile than the S&P 500?

Yes. BABA's volatility over the past 5 years was 51.3%, 3.0 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, BABA's return lands within 51.3% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is BABA's Sharpe ratio?

BABA's Sharpe ratio over the past 5 years was 0.08, against 0.79 for the S&P 500, so BABA earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is BABA with the S&P 500?

Over the past 5 years, BABA's monthly returns had a correlation of 0.15 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They are only loosely linked, which makes it a real diversifier next to an index fund. In the table, the correlation column measures each option against BABA instead: the lower it is, the more that option would diversify a BABA holding.

### What are the best alternatives to BABA?

Of the 19 popular alternatives we compared, eight outperformed BABA in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: SHOP, MELI and AMZN.

### Did BABA outperform the S&P 500?

BABA finished ahead of the S&P 500 (SPY) in three of 11 full calendar years. In 2025, it returned +75.8%, against +17.7% for the index.

### How did BABA do in stock market crashes?

BABA fell less than the S&P 500 (SPY) in one of the six major crashes it has traded through, and further in five. The clearest case was the 2022 bear market, when BABA fell 45.1% and the S&P 500 fell 24.5%.

### What diversifies BABA?

These had a low correlation with BABA over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.27), DXJ (correlation 0.02) and EMLP (correlation 0.12); among large stocks, CAH (correlation -0.20), CLS (correlation 0.08) and FIX (correlation -0.13). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/baba
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against BABA live: https://betterthanspy.com/?b=BABA&utm_source=easycompare&utm_medium=research