# How Cummins (CMI) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/cmi
> 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 CMI alone. It places CMI (Cummins Inc.) against 20+ 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 CMI stands in the market, and of the alternatives worth a closer look.

Period covered: CMI's full trading record, from October 1986 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** Over the past 6 months, CMI fell 15.2% while the S&P 500 rose 9.1%. CMI is 26.0% below its high, bear-market territory, while the S&P 500 sits 1.3% below a record.
- **Stock or market?:** The weakness is CMI's own: it fell 15.8% over the past 3 months while the industrial machinery ETF XLI (State Street Industrial Select Sector SPDR ETF) fell 6.1%. The S&P 500 rose 3.9%.
- **Past 1 to 3 years:** CMI has run far ahead of the market, rising 31.4% over the past year against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100. The same gap shows up over 3 years (160% against 89.3%). CMI lagged its industrial machinery peers in 2023, then moved up the pack in 2025.
- **Long term:** CMI turned $10,000 into $54,400 over the past decade, against $42,100 in the S&P 500. CMI's 10-year return of 444% puts it ahead of 84% of the stocks worth at least $300 million with that much history. The S&P 500 returned 321%.
- **In a crash:** CMI fell harder than the S&P 500 in five of seven sell-offs. The 2022 bear market was the exception: CMI fell 20.7%, less than the S&P 500's 24.5%.
- **Diversification:** Against the S&P 500, CMI has a correlation of 0.64 over 5 years, more closely than 94% of stocks worth at least $300 million. Next to an index fund it is more of the same, not a cushion. When the S&P 500 had a down month, CMI usually fell with it (17 of 22 months).
- **Better options**
  - **Popular alternatives:** WAB (Westinghouse Air Brake Technologies) earned more than CMI with less volatility over the past 5 years: 25.6% a year at 26.2% volatility, against 19.9% a year at 29.0%.
  - **Nearby categories and themes:** GWW (W.W. Grainger, industrial distribution) earned more than CMI with less volatility over the past 5 years: 26.3% a year at 24.9% volatility, against 19.9% a year at 29.0%.
  - **Whole market:** Few investments have done better on both counts: only 38 of the 3,633 stocks and funds worth at least $500 million earned more than CMI with less volatility over the past 5 years, among them XOM (Exxonmobil), ABBV (AbbVie) and HSBC.

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

This chart tracks a hypothetical $10,000 investment in CMI over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of CMI over the same span and CMI's popular alternatives, among those that traded for the entire period.

- $10,000 invested in CMI at the end of September 1997 would have grown to $509,932 by September 2026, more than the $132,907 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of CMI, and ESLT finished highest, at $1,652,837.

## CMI 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.

- CMI is still 26.0% below its all-time high.
- CMI's deepest decline since it began trading in 1986 was 75.7%, from June to November 2008. It took 17 months from the low to climb back to its old high.
- Over 29 full calendar years, CMI's best was 2010, when it returned 143%, and its worst was 2008, when it lost 57.4%. It lost money in eight of those years.

- Type: Stock, Industrials (Industrial - Machinery)
- Trading since: October 17, 1986
- Market value: $74B
- Volatility (5 years): 29.0%; Sharpe ratio: 0.77
- Worst decline ever: −75.7%, from June 16, 2008 to November 20, 2008; back at its high by April 27, 2010

| Period | CMI total return |
| --- | --- |
| 1 month | +0.3% |
| 3 months | −15.8% |
| 6 months | −15.2% |
| year to date | +3.8% |
| 1 year | +31.4% |
| 3 years | +160% |
| 5 years | +148% |
| 10 years | +444% |

## CMI against the whole market

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

### How does CMI rank among all stocks?

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

- On return for the risk taken (the Sharpe ratio), CMI ranks in the top 11% of the 2,893 stocks worth at least $300 million.

| Measure | CMI | Rank |
| --- | --- | --- |
| 1-year return | +31.4% | 932 of 3,287 (top 29%) |
| 3-year return | +160% | 544 of 3,017 (top 19%) |
| 5-year return | +148% | 456 of 2,893 (top 16%) |
| 10-year return | +444% | 359 of 2,202 (top 17%) |
| Volatility, 5 years | 29.0% | 634 of 2,893 (top 22%) |
| Sharpe ratio, 5 years | 0.77 | 322 of 2,893 (top 12%) |
| Worst decline, past 10 years | −44.0% | 263 of 2,187 (top 13%) |

### What has beaten CMI 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).

- 28 stocks and ten ETFs worth at least $500 million sit in the green region: each earned more than CMI over the past 5 years with smaller price swings. That is 1% of the 3,633 screened. Few investments beat it on both counts.
- Among those with at least half CMI's swings, CAH has the best return for its risk: 42.1% a year at 24.7% volatility, 15% less than CMI's 29.0%, and a Sharpe ratio (return above cash per unit of volatility) of 1.55 against 0.77 for CMI.
- Among CMI's popular alternatives, WAB is in the region. WAB earned 25.6% a year against 19.9% a year for CMI, at 26.2% volatility, 10% less than CMI's 29.0%.

### Is there a better investment than CMI?

The table below lists investments that beat CMI 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 CMI's popular alternatives, WAB earned more than CMI with less volatility over the past 5 years: 25.6% a year at 26.2% volatility, against 19.9% a year at 29.0%.
- Looking beyond its popular alternatives, GWW (industrial distribution) earned more than CMI with less volatility over the past 5 years: 26.3% a year at 24.9% volatility, against 19.9% a year at 29.0%.
- Few investments have done better on both counts: only 38 of the 3,633 stocks and funds worth at least $500 million earned more than CMI with less volatility over the past 5 years, among them XOM, ABBV and HSBC.

The 15 strongest of 38 investments that beat CMI 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 CMI | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| CMI: Cummins Inc. (this page) |  | +19.9% | 29.0% | 0.77 | −44.0% | +444% |  |  |
| [MCK](https://easycompare.io/research/mck): McKesson Corporation | Health Care Distribution | +38.7% | 25.0% | 1.44 | −38.1% | +586% | 0.14 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [PGR](https://easycompare.io/research/pgr): The Progressive Corporation | Property & Casualty Insurance | +21.3% | 25.6% | 0.89 | −30.3% | +816% | 0.34 | 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% | 0.32 | Higher return, lower volatility; Higher return in most periods |
| FLTW: Franklin FTSE Taiwan ETF | Technology | +21.8% | 24.3% | 0.94 | −38.0% | — | 0.37 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [ABBV](https://easycompare.io/research/abbv): AbbVie Inc. | Pharmaceuticals | +26.1% | 23.4% | 1.11 | −45.1% | +603% | 0.23 | Higher return, lower volatility; Higher return in most periods |
| [HSBC](https://easycompare.io/research/hsbc): HSBC Holdings plc | Banks | +33.1% | 25.9% | 1.24 | −62.3% | +319% | 0.38 | Higher return, lower volatility; Higher return in most periods |
| [WELL](https://easycompare.io/research/well): Welltower Inc. | Healthcare REITs | +26.0% | 23.8% | 1.09 | −63.3% | +379% | 0.42 | Higher return, lower volatility; Higher return in most periods |
| [BNY](https://easycompare.io/research/bny): Bank of New York Mellon Corp | Banks | +22.7% | 24.4% | 0.97 | −50.5% | +341% | 0.66 | Higher return, lower volatility; Higher return in most periods |
| [MFC](https://easycompare.io/research/mfc): Manulife Financial Corporation | Life Insurance | +22.6% | 24.0% | 0.97 | −57.5% | +373% | 0.55 | Higher return, lower volatility; Higher return in most periods |
| [HLT](https://easycompare.io/research/hlt): Hilton Worldwide Holdings Inc. | Hotels & Resorts | +21.0% | 26.8% | 0.85 | −50.8% | +694% | 0.58 | Higher return, lower volatility; Higher return in most periods |
| [GILD](https://easycompare.io/research/gild): Gilead Sciences, Inc. | Biotechnology | +22.8% | 24.9% | 0.95 | −30.5% | +200% | 0.23 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| CBOE: Cboe Global Markets, Inc. | Capital Markets | +21.5% | 25.1% | 0.91 | −43.2% | +463% | 0.08 | Higher return, lower volatility; Higher return in most periods |
| [COR](https://easycompare.io/research/cor): Cencora, Inc. | Health Care Distribution | +24.2% | 22.8% | 1.07 | −32.4% | +406% | 0.34 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [GWW](https://easycompare.io/research/gww): W.W. Grainger, Inc. | Industrial Distribution | +26.3% | 24.9% | 1.07 | −41.6% | +654% | 0.55 | Higher return, lower volatility; Higher return in most periods |
| [WAB](https://easycompare.io/research/wab): Westinghouse Air Brake Technologies Corporation | Industrial Machinery | +25.6% | 26.2% | 1.00 | −64.1% | +264% | 0.57 | Higher return, lower volatility; Higher return in most periods |

## CMI against its popular alternatives

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

### How do CMI'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.

- Only PH and WAB were both more rewarding and calmer than CMI over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, CMI returned 19.9% a year, more than the S&P 500's 12.7%, with higher volatility (29.0% against 17.1%).

### Has CMI consistently beaten its popular alternatives?

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

- Five of the 21 popular alternatives, led by CAT, WAB and BE, outperformed CMI in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- CAT earned more for the risk it took than CMI (a higher Sharpe ratio) and fell less in its worst decline of the past 10 years.
- MOD outperformed CMI over all three long-term periods but in none of the five short-term ones, so CMI has had the better of it lately.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of CMI | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| CMI: Cummins Inc. (this page) | +31.4% | +160% | +148% | +444% |  |  | 0.77 |
| [CAT](https://easycompare.io/research/cat): Caterpillar Inc. | +37.7% | +203% | +288% | +936% | 3/5 short-term, 3/3 long-term | consistent | 1.01 |
| [WAB](https://easycompare.io/research/wab): Westinghouse Air Brake Technologies Corporation | +45.3% | +189% | +212% | +264% | 4/5 short-term, 2/3 long-term | consistent | 1.00 |
| [BE](https://easycompare.io/research/be): Bloom Energy Corporation | +104% | +1,869% | +965% | — | 4/5 short-term, 2/3 long-term | consistent | 0.96 |
| [PH](https://easycompare.io/research/ph): Parker-Hannifin Corporation | +28.7% | +161% | +235% | +789% | 3/5 short-term, 2/3 long-term | consistent | 0.99 |
| [ETN](https://easycompare.io/research/etn): Eaton Corporation plc | +2.3% | +104% | +153% | +657% | 3/5 short-term, 2/3 long-term | consistent | 0.74 |
| MOD: Modine Manufacturing Company | −7.0% | +260% | +1,127% | +1,187% | 0/5 short-term, 3/3 long-term |  | 1.13 |
| [DE](https://easycompare.io/research/de): Deere & Company | +38.3% | +75.4% | +96.1% | +755% | 4/5 short-term, 1/3 long-term |  | 0.60 |
| ALSN: Allison Transmission Holdings, Inc. | +36.2% | +99.1% | +234% | +367% | 3/5 short-term, 1/3 long-term |  | 0.96 |
| ACMR: ACM Research, Inc. | +38.1% | +208% | +54.8% | — | 3/5 short-term, 1/3 long-term |  | 0.51 |
| TTC: The Toro Company | +40.0% | +31.7% | +13.4% | +155% | 5/5 short-term, 0/3 long-term |  | 0.23 |
| [EMR](https://easycompare.io/research/emr): Emerson Electric Co. | +25.0% | +84.9% | +82.1% | +309% | 4/5 short-term, 0/3 long-term |  | 0.57 |
| [ITW](https://easycompare.io/research/itw): Illinois Tool Works Inc. | +11.7% | +32.1% | +38.4% | +208% | 4/5 short-term, 0/3 long-term |  | 0.41 |
| GNRC: Generac Holdings Inc. | −0.6% | +120% | −57.5% | +430% | 3/5 short-term, 0/3 long-term |  | -0.04 |
| DOV: Dover Corporation | +17.9% | +51.3% | +24.2% | +320% | 3/5 short-term, 0/3 long-term |  | 0.30 |
| GGG: Graco Inc. | −0.1% | +20.3% | +18.5% | +263% | 3/5 short-term, 0/3 long-term |  | 0.26 |
| DAN: Dana Incorporated | +53.4% | +150% | +32.4% | +137% | 3/5 short-term, 0/3 long-term |  | 0.36 |
| IR: Ingersoll Rand Inc. | +0.3% | +30.4% | +47.6% | — | 3/5 short-term, 0/3 long-term |  | 0.41 |
| [PCAR](https://easycompare.io/research/pcar): PACCAR Inc | +15.7% | +50.2% | +128% | +314% | 2/5 short-term, 0/3 long-term |  | 0.76 |
| XYL: Xylem Inc. | −27.4% | +18.7% | −11.7% | +143% | 2/5 short-term, 0/3 long-term |  | 0.04 |
| FLS: Flowserve Corporation | +38.1% | +97.4% | +104% | +94.5% | 2/5 short-term, 0/3 long-term |  | 0.57 |
| BLDP: Ballard Power Systems Inc. | −58.5% | −54.7% | −90.9% | −30.7% | 0/5 short-term, 0/3 long-term |  | -0.35 |

### How did CMI do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where CMI ranked among its popular alternatives each year.

- Ranked against its popular alternatives each year, CMI finished in the top quarter in ten of 29 years and in the bottom quarter in four. In 2025, it ranked 6 of 22.
- CMI finished ahead of the S&P 500 in 17 of its 29 full calendar years, and ahead of it in each of the last two.
- Among its popular alternatives, ACMR came out ahead of CMI most often, in six of the eight years both traded.

| Year | CMI | SPY |
| --- | --- | --- |
| 2025 | +49.4% | +17.7% |
| 2024 | +48.9% | +24.9% |
| 2023 | +1.7% | +26.2% |
| 2022 | +14.1% | −18.2% |
| 2021 | −1.7% | +28.7% |
| 2020 | +30.5% | +18.3% |
| 2019 | +38.0% | +31.2% |
| 2018 | −22.1% | −4.6% |
| 2017 | +32.7% | +21.7% |
| 2016 | +60.7% | +12.0% |

## Risk and diversification

How CMI 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 CMI's worst declines?

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

- In all four of CMI's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: CMI fell 45.9% from June 2014 to January 2016, while the S&P 500 slipped only 0.4%.
- The slowest recovery came after CMI fell 62.2% from June 1987 to November 1990; it did not regain that peak until January 1993, two years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −75.7% | June 16, 2008 | November 20, 2008 | April 27, 2010 | −44.0% | 2008 financial crisis |
| −72.5% | August 7, 1997 | October 9, 2002 | July 27, 2004 | −12.5% | dot-com bust |
| −62.2% | June 9, 1987 | November 5, 1990 | January 8, 1993 | — |  |
| −45.9% | June 10, 2014 | January 19, 2016 | February 9, 2017 | −0.4% | 2015 China and oil sell-off |
| −44.0% | November 11, 2019 | March 23, 2020 | June 8, 2020 | −26.9% | Covid crash |

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

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

- CMI fell further than the S&P 500 in eight of the ten crashes it has traded through. The clearest case was the 2015 China and oil sell-off, when CMI fell 35.1% and the S&P 500 fell 12.8%.
- Among its popular alternatives, TTC held up best, falling less than CMI in nine of the ten crashes they both traded through.

| Crash | Dates | CMI fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −60.2% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −75.7% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.9% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −27.6% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −35.1% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −11.0% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −17.7% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −38.6% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −20.7% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −7.9% | −3.4% |

### How closely does CMI 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.

- DE took just 66% of the S&P 500's losses, against 118% for CMI, while still keeping 110% of its gains.
- Over the past 10 years, CMI captured 118% of the S&P 500's gains in rising months and 118% of its losses in falling months, with a beta of 1.15. It amplified the market's moves in both directions.
- Five of the 18 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than CMI's 1.00, led by DE, ETN and CAT.

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

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| CMI: Cummins Inc. (this page) | 118% | 118% | 1.15 |
| [CAT](https://easycompare.io/research/cat): Caterpillar Inc. | 148% | 122% | 1.27 |
| [WAB](https://easycompare.io/research/wab): Westinghouse Air Brake Technologies Corporation | 111% | 127% | 1.28 |
| [PH](https://easycompare.io/research/ph): Parker-Hannifin Corporation | 141% | 126% | 1.43 |
| [ETN](https://easycompare.io/research/etn): Eaton Corporation plc | 114% | 80.0% | 1.16 |
| MOD: Modine Manufacturing Company | 189% | 180% | 2.20 |
| [DE](https://easycompare.io/research/de): Deere & Company | 110% | 66.0% | 0.98 |
| ALSN: Allison Transmission Holdings, Inc. | 111% | 112% | 1.07 |
| TTC: The Toro Company | 71.0% | 82.0% | 0.74 |
| [EMR](https://easycompare.io/research/emr): Emerson Electric Co. | 124% | 153% | 1.39 |
| [ITW](https://easycompare.io/research/itw): Illinois Tool Works Inc. | 94.0% | 116% | 1.04 |
| GNRC: Generac Holdings Inc. | 129% | 133% | 1.45 |
| DOV: Dover Corporation | 114% | 133% | 1.27 |
| GGG: Graco Inc. | 90.0% | 92.0% | 0.78 |
| DAN: Dana Incorporated | 174% | 274% | 2.26 |
| [PCAR](https://easycompare.io/research/pcar): PACCAR Inc | 103% | 108% | 0.97 |
| XYL: Xylem Inc. | 90.0% | 123% | 1.03 |
| FLS: Flowserve Corporation | 119% | 188% | 1.49 |
| BLDP: Ballard Power Systems Inc. | 88.0% | 176% | 1.90 |

### What diversifies CMI?

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 CMI into GLD would have cut the portfolio's volatility by 19% over the past 5 years and raised its annual return (+20.9% for CMI alone, +21.5% for the mix).
- Among large ETFs, DXJ, EWP and SMH have moved largely independently of CMI over the past 5 years, with correlations of 0.49 or lower, and each still earned a positive 5-year return.
- Among large stocks, CAH, CLS and MCK have moved largely independently of CMI over the past 5 years, with correlations of 0.43 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with CMI | 5Y return | Volatility | Sharpe | Rose in CMI's 8 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.42 | +225% | 19.1% | 1.34 | 2 of 8 |
| EWP: iShares MSCI Spain ETF | 0.49 | +140% | 20.3% | 0.97 | 2 of 8 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.43 | +323% | 36.9% | 0.97 | 2 of 8 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | -0.01 | +126% | 18.9% | 0.96 | 2 of 8 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.40 | +177% | 25.5% | 0.93 | 3 of 8 |
| EWT: iShares MSCI Taiwan ETF | 0.37 | +153% | 24.2% | 0.89 | 1 of 8 |
| IDV: iShares International Select Dividend ETF | 0.42 | +82.6% | 15.5% | 0.86 | 1 of 8 |
| EDIV: State Street SPDR S&P Emerging Markets Dividend ETF | 0.33 | +69.9% | 13.8% | 0.84 | 1 of 8 |

## Common questions

### What was CMI's worst drawdown?

CMI's deepest decline since it began trading in 1986 was 75.7%, from June to November 2008. It took 17 months from the low to climb back to its old high.

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

Over 29 full calendar years, CMI's best year was 2010, when it returned 143%. Its worst was 2008, with a return of -57.4%.

### Is there a better investment than CMI?

Among CMI's popular alternatives, WAB earned more than CMI with less volatility over the past 5 years: 25.6% a year at 26.2% volatility, against 19.9% a year at 29.0%. Looking beyond its popular alternatives, GWW (industrial distribution) earned more than CMI with less volatility over the past 5 years: 26.3% a year at 24.9% volatility, against 19.9% a year at 29.0%.

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

Yes. CMI's volatility over the past 5 years was 29.0%, 1.7 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, CMI's return lands within 29.0% 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 CMI's Sharpe ratio?

CMI's Sharpe ratio over the past 5 years was 0.77, against 0.79 for the S&P 500, so CMI 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 CMI with the S&P 500?

Over the past 5 years, CMI's monthly returns had a correlation of 0.64 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against CMI instead: the lower it is, the more that option would diversify a CMI holding.

### What are the best alternatives to CMI?

Of the 21 popular alternatives we compared, five outperformed CMI in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: CAT, WAB and BE.

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

CMI finished ahead of the S&P 500 (SPY) in 17 of 29 full calendar years. In 2025, it returned +49.4%, against +17.7% for the index.

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

CMI fell less than the S&P 500 (SPY) in two of the ten major crashes it has traded through, and further in eight. The clearest case was the 2015 China and oil sell-off, when CMI fell 35.1% and the S&P 500 fell 12.8%.

### What diversifies CMI?

These had a low correlation with CMI over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.42), EWP (correlation 0.49) and SMH (correlation 0.43); among large stocks, CAH (correlation 0.32), CLS (correlation 0.43) and MCK (correlation 0.14). 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/cmi
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against CMI live: https://betterthanspy.com/?b=CMI&utm_source=easycompare&utm_medium=research