Why UNC Has a Better Return on Investment Than Duke

Wealthsimple makes powerful financial tools to help you grow and manage your money. Learn more

Some people are good at betting on the NCAA tournament (like President Obama). Some people are bad (most of our office). But we wondered: if we were more-data driven (and we really are data-driven) in our approach, could we figure out which teams make the most financial sense to bet on? And what their return on investment would be? How would that return compare to, you know, building yourself a really robust investment portfolio (or at least buying shares in an ETF that tracks the S&P 500)? To find out, we pitted four heavily-favored teams against each other — some who made it into the Final Four as expected (UNC, Gonzaga), and some who did not (Duke, Kansas).

But first a caveat: betting on sports makes no financial sense.

Our conclusions from our analysis:

  1. We knew it! Duke is demonstrably overrated! They beat the Vegas odds less often than the other teams. A lousy return on investment of 0.2%.

  2. We didn't know it! Gonzaga is kind of overrated too! We figured they would be way underrated, since they always seem to be the Cinderella story (not the story this year, of course).

  3. Kansas does pretty respectably at 4.1%.

  4. UNC actually garners a moderately OK return on investment over the last 12 years — 7.1%! About the same as Urban Outfitters stock.

Now here's how UNC does against the S&P 500.

Yeah, UNC is still a terrible investment compared to an even mildly diversified collection of stocks like the S&P 500 — 7.1% versus 154%. If you plan on investing over the next 12 years, we think a brilliantly-constructed portfolio of ETFs tailored to your financial goals is the way to go. Which is probably not surprising at all.

Wealthsimple makes smart investing simple and affordable.

Wealthsimple uses technology and smart, friendly humans to help you grow and manage your money. Invest and save in a better, simpler way

Money + the World

"BURNOUT HAS BECOME OUR BASE TEMPERATURE. WE’RE THE BURNOUT GENERATION."

Anne Helen Petersen explains how things are different for the generation the world seems to love to hate.

subscribe

Get the best stories from our magazine every month

Sign up for our email newsletter

  • Money & the World

    The Price of Love (Meow!)

    How much will it cost to have a cat — this year, next year, for the rest of its natural born life? We did some math.

  • Money & the World

    Kawhi: Best. Trade. Ever. In history. Of the Universe.

    As folks who like trades (be they in financial markets or the NBA), here’s our argument that the Kawhi Leonard trade was the best in NBA history.

  • Get Started

    Get rich slow

    Powerful financial tools to help you grow and manage your money. Get started now.

    see-more cta
  • Money & the World

    Dumb Questions for Smart People: Why Helicopter Parenting Is a Response to Income Inequality

    The economics of the way we raise our children — and the psychological repercussions it causes.

  • Money & the World

    The Price of Love (Woof!)

    How much will it cost to have a dog — this year, next year, for the rest of its natural born life? We did some math.

Meet Wealthsimple

Get rich slow

Powerful financial tools to help you grow and manage your money. Get started now.

Learn moreright arrow icon

Our best stories, once a month.

Sign up for our newsletter

The content on this site is produced by Wealthsimple Technologies Inc. and is for informational purposes only. The content is not intended to be investment advice or any other kind of professional advice. Before taking any action based on this content you should consult a professional. We do not endorse any third parties referenced on this site. When you invest, your money is at risk and it is possible that you may lose some or all of your investment. Past performance is not a guarantee of future results. Historical returns, hypothetical returns, expected returns and images included in this content are for illustrative purposes only. By using this website, you accept our (Terms of Use) and (Privacy Policy). Copyright 2020 Wealthsimple Technologies Inc.

;