# How Waters (WAT) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/wat
> 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 WAT alone. It places WAT (Waters Corporation) 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 WAT stands in the market, and of the alternatives worth a closer look.

Period covered: WAT's full trading record, from November 1995 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** WAT has run far ahead of the market, rising 31.9% over the past 6 months against 9.1% for the S&P 500 and 11.2% for the Nasdaq 100. Its life sciences tool peers were far apart over the past 6 months, from ILMN (Illumina, up 102%) to DHR (Danaher, up 15.0%).
- **Stock or market?:** WAT's 23.9% gain over the past 3 months far outran its industry: the life sciences tools ETF IHI (iShares U.S. Medical Devices ETF) rose 7.5%. The S&P 500 rose 3.9%. Its life sciences tool peers did not move as one over the past 3 months: ILMN (Illumina) rose 45.1%, while TECH (Bio-Techne) rose 1.4%.
- **Past 1 to 3 years:** Over the past year, WAT rose 29.0% against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100. Even so, WAT finished behind the S&P 500 in both 2024 and 2025.
- **Long term:** WAT turned $10,000 into $28,200 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** WAT fell harder than the S&P 500 in five of seven sell-offs. The Covid crash was the exception: WAT fell 25.3%, less than the S&P 500's 33.7%.
- **Diversification:** WAT is some diversification, but not a hedge: a correlation of 0.53 with the S&P 500 over 5 years and 0.54 with the total US market, more closely than 79% of stocks worth at least $300 million. Over 10 years, WAT's beta versus the S&P 500 was 1.01: in the S&P 500's rising months it gained 1.1 times as much as the index, and in falling months it lost 1.4 times as much.
- **Better options**
  - **Popular alternatives:** MRK (Merck & Co., Inc.) earned more than WAT with less volatility over the past 5 years: 16.3% a year at 24.8% volatility, against 4.5% a year at 33.9%.
  - **Nearby categories and themes:** JNJ (Johnson & Johnson, pharmaceuticals) and NVS (Novartis, pharmaceuticals) earned more than WAT with less volatility over the past 5 years. JNJ returned 12.7% a year at 17.9% volatility, against 4.5% a year at 33.9%.
  - **Whole market:** 1,126 of the 3,633 stocks and funds worth at least $500 million earned more than WAT with less volatility over the past 5 years, among them AAPL (Apple), GOOG (Alphabet) and MSFT (Microsoft).

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

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

- $10,000 invested in WAT at the end of September 1997 would have grown to $397,649 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 WAT, and RGEN finished highest, at $1,656,966.

## WAT 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.

- WAT's deepest decline since it began trading in 1995 was 80.1%, from September 2000 to July 2002. It took about nine years from the low to climb back to its old high.
- WAT is trading within 1% of its all-time high.
- Over 29 full calendar years, WAT's best was 2000, when it returned 215%, and its worst was 2008, when it lost 53.6%. It lost money in nine of those years.

- Type: Stock, Healthcare (Medical - Diagnostics & Research)
- Trading since: November 17, 1995
- Market value: $43B
- Volatility (5 years): 33.9%; Sharpe ratio: 0.30
- Worst decline ever: −80.1%, from September 28, 2000 to July 22, 2002; back at its high by April 21, 2011

| Period | WAT total return |
| --- | --- |
| 1 month | +4.5% |
| 3 months | +23.9% |
| 6 months | +31.9% |
| year to date | +15.9% |
| 1 year | +29.0% |
| 3 years | +74.6% |
| 5 years | +24.4% |
| 10 years | +182% |

## WAT against the whole market

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

### How does WAT rank among all stocks?

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

- WAT's worst decline of the past 10 years ranks in the top 12% of the 2,187 stocks worth at least $300 million, where the top fell the least.

| Measure | WAT | Rank |
| --- | --- | --- |
| 1-year return | +29.0% | 999 of 3,287 (top 31%) |
| 3-year return | +74.6% | 1,193 of 3,017 (top 40%) |
| 5-year return | +24.4% | 1,398 of 2,893 (top 49%) |
| 10-year return | +182% | 941 of 2,202 (top 43%) |
| Volatility, 5 years | 33.9% | 1,053 of 2,893 (top 37%) |
| Sharpe ratio, 5 years | 0.30 | 1,559 of 2,893 (top 54%) |
| Worst decline, past 10 years | −44.3% | 269 of 2,187 (top 13%) |

### What has beaten WAT 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).

- 498 stocks and 628 ETFs worth at least $500 million sit in the green region: each earned more than WAT over the past 5 years with smaller price swings. That is 31% of the 3,633 screened.
- Among those with at least half WAT's swings, CAH has the best return for its risk: 42.1% a year at 24.7% volatility, 27% less than WAT's 33.9%, and a Sharpe ratio (return above cash per unit of volatility) of 1.55 against 0.30 for WAT.
- Among WAT's popular alternatives, MRK is in the region. MRK earned 16.3% a year against 4.5% a year for WAT, at 24.8% volatility, 27% less than WAT's 33.9%.

### Is there a better investment than WAT?

The table below lists investments that beat WAT 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 WAT's popular alternatives, MRK earned more than WAT with less volatility over the past 5 years: 16.3% a year at 24.8% volatility, against 4.5% a year at 33.9%.
- Looking beyond its popular alternatives, JNJ (pharmaceuticals) and NVS (pharmaceuticals) earned more than WAT with less volatility over the past 5 years. JNJ returned 12.7% a year at 17.9% volatility, against 4.5% a year at 33.9%.
- Across the whole market, 1,126 of the 3,633 stocks and funds worth at least $500 million earned more than WAT with less volatility over the past 5 years, among them AAPL, GOOG and MSFT.

The 15 strongest of 1,126 investments that beat WAT 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 WAT | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| WAT: Waters Corporation (this page) |  | +4.5% | 33.9% | 0.30 | −44.3% | +182% |  |  |
| EXPD: Expeditors International of Washington, Inc. | Freight & Logistics | +12.0% | 27.1% | 0.56 | −35.6% | +349% | 0.59 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| CIBR: First Trust Nasdaq Cybersecurity ETF | Cybersecurity | +14.1% | 26.1% | 0.64 | −33.9% | +454% | 0.44 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | Gold | +17.7% | 18.9% | 0.96 | −26.4% | +213% | 0.10 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| NHC: National HealthCare Corporation | Medical - Care Facilities | +32.0% | 28.5% | 1.12 | −35.3% | +394% | 0.40 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| HACK: Amplify Cybersecurity ETF | Technology | +12.6% | 25.8% | 0.59 | −38.7% | +373% | 0.43 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [AAPL](https://easycompare.io/research/aapl): Apple Inc. | Computer Hardware | +18.5% | 28.0% | 0.75 | −38.5% | +1,168% | 0.31 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [MSFT](https://easycompare.io/research/msft): Microsoft Corporation | Software | +12.5% | 28.2% | 0.56 | −37.1% | +946% | 0.24 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| IHAK: iShares Cybersecurity and Tech ETF | Technology | +8.3% | 25.0% | 0.44 | −34.4% | — | 0.46 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | US Total Market | +11.5% | 17.5% | 0.71 | −35.0% | +302% | 0.54 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [VOO](https://easycompare.io/research/voo): Vanguard S&P 500 ETF | US Large-Cap Equity | +12.8% | 16.9% | 0.80 | −34.0% | +324% | 0.53 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [WMT](https://easycompare.io/research/wmt): Walmart Inc. | Discount Retail | +20.8% | 22.6% | 0.96 | −25.7% | +508% | 0.10 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.36 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [V](https://easycompare.io/research/v): Visa Inc. | Payment Processing | +12.8% | 22.9% | 0.64 | −36.4% | +429% | 0.40 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| DXJ: WisdomTree Japan Hedged Equity Fund | International Equity | +26.6% | 19.1% | 1.34 | −39.1% | +428% | 0.20 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Equity | +17.0% | 11.1% | 1.48 | −32.4% | +194% | 0.36 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |

## WAT against its popular alternatives

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

### How do WAT'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.

- LLY, MRK and XBI were both more rewarding and calmer than WAT over the past 5 years, earning a higher annual return with lower volatility.
- 12 of the 20 popular alternatives earned less than WAT over the past 5 years while swinging more, the weaker corner of the map.
- Over the past 5 years, WAT returned 4.5% a year, less than the S&P 500's 12.7%, with higher volatility (33.9% against 17.1%).

### Has WAT consistently beaten its popular alternatives?

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

- LLY outperformed WAT in every long-term period and in all but one short-term period, the most consistent record in the group.
- Only one of the 20 popular alternatives, LLY, outperformed WAT in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- LLY and MRK earned more for the risk they took than WAT (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 WAT | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| WAT: Waters Corporation (this page) | +29.0% | +74.6% | +24.4% | +182% |  |  | 0.30 |
| [LLY](https://easycompare.io/research/lly): Eli Lilly and Company | +59.7% | +124% | +451% | +1,807% | 4/5 short-term, 3/3 long-term | all-weather | 1.21 |
| [MRK](https://easycompare.io/research/mrk): Merck & Co., Inc. | +76.8% | +58.3% | +113% | +241% | 2/5 short-term, 2/3 long-term |  | 0.74 |
| RVTY: Revvity, Inc. | +64.0% | +54.6% | −10.6% | +203% | 5/5 short-term, 1/3 long-term |  | 0.11 |
| [ILMN](https://easycompare.io/research/ilmn): Illumina, Inc. | +169% | +130% | −33.3% | +93.0% | 5/5 short-term, 1/3 long-term |  | 0.06 |
| [A](https://easycompare.io/research/a): Agilent Technologies, Inc. | +22.0% | +62.1% | +13.8% | +306% | 4/5 short-term, 1/3 long-term |  | 0.24 |
| TXG: 10x Genomics, Inc. | +444% | +81.2% | −55.8% | — | 4/5 short-term, 1/3 long-term |  | 0.12 |
| [IQV](https://easycompare.io/research/iqv): IQVIA Holdings Inc. | +26.3% | +45.3% | +6.5% | +260% | 3/5 short-term, 1/3 long-term |  | 0.21 |
| MTD: Mettler-Toledo International Inc. | +20.4% | +60.2% | +13.7% | +298% | 2/5 short-term, 1/3 long-term |  | 0.24 |
| XBI: State Street SPDR S&P Biotech ETF | +39.7% | +130% | +25.1% | +159% | 2/5 short-term, 1/3 long-term |  | 0.30 |
| RGEN: Repligen Corporation | +15.8% | +22.5% | −33.3% | +514% | 1/5 short-term, 1/3 long-term |  | 0.10 |
| [TMO](https://easycompare.io/research/tmo): Thermo Fisher Scientific Inc. | +26.8% | +49.5% | +15.1% | +366% | 1/5 short-term, 1/3 long-term |  | 0.24 |
| TECH: Bio-Techne Corporation | +16.7% | +15.1% | −41.4% | +191% | 1/5 short-term, 1/3 long-term |  | -0.08 |
| [DHR](https://easycompare.io/research/dhr): Danaher Corporation | +8.3% | +10.8% | −17.6% | +232% | 0/5 short-term, 1/3 long-term |  | 0.01 |
| AVTR: Avantor, Inc. | +9.5% | −19.1% | −56.9% | — | 4/5 short-term, 0/3 long-term |  | -0.20 |
| BRKR: Bruker Corporation | +47.4% | −5.0% | −27.7% | +171% | 3/5 short-term, 0/3 long-term |  | 0.08 |
| SDGR: Schrödinger, Inc. | +6.5% | +6.5% | −58.2% | — | 3/5 short-term, 0/3 long-term |  | 0.06 |
| PACB: Pacific Biosciences of California, Inc. | −1.0% | −73.5% | −92.2% | −77.9% | 2/5 short-term, 0/3 long-term |  | -0.04 |
| QGEN: Qiagen N.V. | +6.3% | +45.9% | +3.0% | +111% | 1/5 short-term, 0/3 long-term |  | 0.15 |
| ICLR: ICON Public Limited Company | −7.6% | −23.2% | −37.0% | +106% | 1/5 short-term, 0/3 long-term |  | 0.04 |
| BIO: Bio-Rad Laboratories, Inc. | +10.1% | +14.1% | −52.5% | +115% | 0/5 short-term, 0/3 long-term |  | -0.21 |

### How did WAT do year by year?

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

- WAT finished ahead of the S&P 500 in 15 of its 29 full calendar years, and behind it in each of the last three.
- Ranked against its popular alternatives each year, WAT finished in the top quarter in eight of 29 years and in the bottom quarter in five. In 2025, it ranked 10 of 21.
- Among its popular alternatives, IQV came out ahead of WAT most often, in eight of the 12 years both traded.

| Year | WAT | SPY |
| --- | --- | --- |
| 2025 | +2.4% | +17.7% |
| 2024 | +12.7% | +24.9% |
| 2023 | −3.9% | +26.2% |
| 2022 | −8.1% | −18.2% |
| 2021 | +50.6% | +28.7% |
| 2020 | +5.9% | +18.3% |
| 2019 | +23.9% | +31.2% |
| 2018 | −2.4% | −4.6% |
| 2017 | +43.8% | +21.7% |
| 2016 | −0.1% | +12.0% |

## Risk and diversification

How WAT 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 WAT's worst declines?

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

- In all five of WAT's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: WAT fell 44.3% from September 2021 to October 2023, while the S&P 500 slipped only 4.7%.
- The slowest recovery came after WAT fell 80.1% from September 2000 to July 2002; it did not regain that peak until April 2011, nine years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −80.1% | September 28, 2000 | July 22, 2002 | April 21, 2011 | −42.0% | dot-com bust |
| −44.3% | September 8, 2021 | October 30, 2023 | September 17, 2026 | −4.7% | 2022 bear market |
| −35.9% | April 8, 2019 | March 23, 2020 | January 5, 2021 | −21.2% | Covid crash |
| −35.1% | September 14, 1999 | December 15, 1999 | January 25, 2000 | +5.9% |  |
| −29.4% | October 3, 1996 | April 17, 1997 | June 2, 1997 | +10.7% |  |

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

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

- WAT fell further than the S&P 500 in seven of the ten crashes it has traded through. The clearest case was the dot-com bust, when WAT fell 80.1% and the S&P 500 fell 47.5%.
- Among its popular alternatives, LLY held up best, falling less than WAT in nine of the ten crashes they both traded through.

| Crash | Dates | WAT fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −80.1% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −60.7% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −3.4% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −26.4% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −16.6% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −9.7% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −14.7% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −25.3% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −26.3% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −1.6% | −3.4% |

### How closely does WAT 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.

- LLY took just 6% of the S&P 500's losses, against 139% for WAT, while still keeping 101% of its gains.
- Over the past 10 years, WAT captured 107% of the S&P 500's gains in rising months and 139% of its losses in falling months, with a beta of 1.01. It amplified the market's moves in both directions.
- Seven of the 17 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than WAT's 0.77, led by LLY, MRK and RGEN.

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

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| WAT: Waters Corporation (this page) | 107% | 139% | 1.01 |
| [LLY](https://easycompare.io/research/lly): Eli Lilly and Company | 101% | 6.0% | 0.37 |
| [MRK](https://easycompare.io/research/mrk): Merck & Co., Inc. | 64.0% | 46.0% | 0.30 |
| RVTY: Revvity, Inc. | 111% | 146% | 1.10 |
| [ILMN](https://easycompare.io/research/ilmn): Illumina, Inc. | 120% | 200% | 1.19 |
| [A](https://easycompare.io/research/a): Agilent Technologies, Inc. | 120% | 141% | 1.13 |
| [IQV](https://easycompare.io/research/iqv): IQVIA Holdings Inc. | 128% | 167% | 1.31 |
| MTD: Mettler-Toledo International Inc. | 118% | 143% | 1.13 |
| XBI: State Street SPDR S&P Biotech ETF | 93.0% | 122% | 1.01 |
| RGEN: Repligen Corporation | 119% | 108% | 0.99 |
| [TMO](https://easycompare.io/research/tmo): Thermo Fisher Scientific Inc. | 104% | 104% | 0.81 |
| TECH: Bio-Techne Corporation | 120% | 162% | 1.23 |
| [DHR](https://easycompare.io/research/dhr): Danaher Corporation | 84.0% | 84.0% | 0.75 |
| BRKR: Bruker Corporation | 121% | 160% | 1.27 |
| PACB: Pacific Biosciences of California, Inc. | 76.0% | 234% | 1.70 |
| QGEN: Qiagen N.V. | 62.0% | 83.0% | 0.45 |
| ICLR: ICON Public Limited Company | 97.0% | 135% | 1.04 |
| BIO: Bio-Rad Laboratories, Inc. | 104% | 146% | 0.99 |

### What diversifies WAT?

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 WAT into GLD would have cut the portfolio's volatility by 18% over the past 5 years and raised its annual return (+4.2% for WAT alone, +8.0% for the mix).
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of WAT over the past 5 years, with correlations of 0.36 or lower, and each still earned a positive 5-year return.
- FIX made money in six of the nine calendar years in which WAT lost money.

| Investment | Correlation with WAT | 5Y return | Volatility | Sharpe | Rose in WAT's 9 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.36 | +119% | 11.1% | 1.48 | 2 of 9 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.20 | +225% | 19.1% | 1.34 | 3 of 9 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.31 | +101% | 14.5% | 1.04 | 3 of 9 |
| EWP: iShares MSCI Spain ETF | 0.39 | +140% | 20.3% | 0.97 | 2 of 9 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.31 | +323% | 36.9% | 0.97 | 4 of 9 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.48 | +85.0% | 13.8% | 0.96 | 2 of 9 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.10 | +126% | 18.9% | 0.96 | 5 of 9 |
| IOO: iShares Global 100 ETF | 0.47 | +107% | 17.2% | 0.94 | 3 of 9 |

## Common questions

### What was WAT's worst drawdown?

WAT's deepest decline since it began trading in 1995 was 80.1%, from September 2000 to July 2002. It took about nine years from the low to climb back to its old high.

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

Over 29 full calendar years, WAT's best year was 2000, when it returned 215%. Its worst was 2008, with a return of -53.6%.

### Is there a better investment than WAT?

Among WAT's popular alternatives, MRK earned more than WAT with less volatility over the past 5 years: 16.3% a year at 24.8% volatility, against 4.5% a year at 33.9%. Looking beyond its popular alternatives, JNJ (pharmaceuticals) and NVS (pharmaceuticals) earned more than WAT with less volatility over the past 5 years. JNJ returned 12.7% a year at 17.9% volatility, against 4.5% a year at 33.9%.

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

Yes. WAT's volatility over the past 5 years was 33.9%, about twice the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, WAT's return lands within 33.9% 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 WAT's Sharpe ratio?

WAT's Sharpe ratio over the past 5 years was 0.30, against 0.79 for the S&P 500, so WAT 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 WAT with the S&P 500?

Over the past 5 years, WAT's monthly returns had a correlation of 0.53 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 WAT instead: the lower it is, the more that option would diversify a WAT holding.

### What are the best alternatives to WAT?

Of the 20 popular alternatives we compared, one outperformed WAT in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: LLY.

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

WAT finished ahead of the S&P 500 (SPY) in 15 of 29 full calendar years. In 2025, it returned +2.4%, against +17.7% for the index.

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

WAT fell less than the S&P 500 (SPY) in three of the ten major crashes it has traded through, and further in seven. The clearest case was the dot-com bust, when WAT fell 80.1% and the S&P 500 fell 47.5%.

### What diversifies WAT?

These had a low correlation with WAT over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.36), DXJ (correlation 0.20) and EMLP (correlation 0.31); among large stocks, CAH (correlation 0.29), CLS (correlation 0.17) and FIX (correlation 0.19). 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/wat
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against WAT live: https://betterthanspy.com/?b=WAT&utm_source=easycompare&utm_medium=research