Australia and New Zealand Banking GrpLtd (ASX: ANZ) shares have been in fine form in 2021.
Since the start of the year, the banking giant's shares have risen 24%. This means the ANZ share price is now up almost 57% since this time last year.
While this is incredibly positive, has it been as positive on a longer time horizon?
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What would have happened to a $1,000 investment in ANZ shares 10 years ago?
It certainly has been an eventful decade for the banking sector.
During this time the sector has dealt with a housing market downturn, a Royal Commission, and the global pandemic.
This has unsurprisingly led to ANZ shares underperforming the market during the period. But perhaps not by as great a margin as you might think.
For example, the ANZ share price is currently fetching $28.50. This compares to $19.50 in August 2011. This means ANZ shares have risen by 46% over the period.
But that doesn't include the many dividends that ANZ has paid over the 10 years. If you were to include them, then you would have a total average return of 8.6% per annum.
Based on this return, if you had invested $1,000 into ANZ shares in August 2011, you would now have approximately $2,280 today. That's a 128% total return.
How does this compare?
The Australian share market has provided investors with a return of 10.9% per annum over the last decade.
This means that investors earning the market return on a $1,000 investment would now have $2,800. This is ~$500 more than what you would have returned with ANZ shares.
While underperforming the market is always disappointing, considering what the sector has been through during this investment period, investors aren't likely to be too upset with the return they have received.
And with analysts at Morgans recently slapping an add rating and $34.50 price target on the bank's shares. There could still be plenty more gains to come in the near future.
