- A hypothetical ‘Miranda portfolio’ of heritage luxury stocks returned 629% over 20 years, outperforming the S&P 500 and the S&P Global Luxury Index
- Hermès returned 2,206% over 20 years, the highest in the basket, despite weaker short-term performance
- Luxury stocks have come under fresh pressure in recent weeks as Middle East tensions hit tourism and demand across the sector.
Cerulean blue was never just a colour, but something bigger than fashion. It was about how decisions made at the top of a market eventually shape what everyone else buys. Ahead of the release of The Devil Wears Prada 2, eToro applied that same idea to investing.
eToro, the trading and investing platform assembled a hypothetical ‘Miranda portfolio’ of heritage luxury stocks. The portfolio would have returned 629% since the original film hit screens in 2006, outperforming the S&P 500 (442%) and the S&P Global Luxury Index (297%). The data highlights how Miranda Priestly-style selectivity has historically driven outperformance in the luxury sector.
| Brand | 1 year | 3 years | 5 years | 10 years | 20 years |
|---|---|---|---|---|---|
| Hermès | -26% | -12% | 59% | 459% | 2206% |
| Richemont | 14% | 16% | 93% | 198% | 619% |
| L’Oréal | -2% | -17% | -2% | 121% | 344% |
| Kering | 46% | -55% | -64% | 78% | 149% |
| Burberry | 77% | -50% | -44% | -11% | 92% |
| Christian Dior | 3% | -44% | -24% | 202% | 467% |
| Ralph Lauren | 85% | 236% | 215% | 311% | 525% |
| Basket average | 28% | 11% | 33% | 194% | 629% |
| S&P Global Luxury Index | 17% | -2% | -3% | 126% | 297% |
| S&P 500 | 34% | 71% | 72% | 238% | 442% |
Performance of “Miranda’s Portfolio” of Luxury Heritage Brands. Price returns are in USD, not annualized.
The portfolio includes Hermès, Richemont, L’Oréal, Kering, Burberry, Christian Dior and Ralph Lauren. Hermès was the standout performer over 20 years, returning 2206%. Christian Dior returned 467%, Ralph Lauren 525%, Richemont 619% and L’Oréal 344%. At the other end of the scale, Burberry returned 92% and Kering 149%, reinforcing that selectivity remains pivotal.
“If Miranda had built a portfolio in 2006, she would not have chased novelty or short-term momentum. She would have prioritised heritage, scarcity and brand power that does not depend on the moment. That instinct maps closely to what has driven long term outperformance in luxury equities,” commented Lale Akoner, Global Market Strategist at eToro. “The strongest names in the sector operate more like compounders than cyclical plays. They tend to share a very specific set of traits: protected pricing, limited supply and the confidence not to chase the market fads. Hermès has rarely discounted. Ralph Lauren spent years being considered unfashionable by the fashion industry. L’Oréal kept selling the same products through every cycle. These may not be exciting investment stories in the short term, but they have been very resilient over the long run.”
The shorter-term picture is more mixed, highlighting the sector’s sensitivity to macro conditions. Over the past 10 years, the basket returned 194%, compared with 238% for the S&P 500. Over five years, the basket is up 33%, while it has returned just 11% over three years and 28% over one year.
Lale Akoner added: “Luxury is often treated as a single trade, but the reality is far more selective. The performance dispersion, i.e. the gap between the best and worst performers, is substantial and that reflects differences in brand positioning, execution, and exposure to aspirational versus ultra high-end demand. Over shorter timeframes, however, the sector behaves much more like a cyclical trade. Demand is sensitive to global liquidity, consumer confidence, and tourism flows, particularly in key markets such as the US and China. That explains why the recent performance has been volatile, despite the strength of underlying brands.“
Over the long run, the strongest heritage brands have demonstrated an ability to protect pricing, preserve exclusivity and defend margins across cycles. For consumers, these names are associated with handbags, lipstick, trench coats and polo shirts. For investors, they have delivered sustained compounding, provided selection was disciplined. As The Devil Wears Prada returns, the investment lesson is simple. Glamour may grab attention, but durability is what delivers returns.
*Share price data taken at market close 22/04/2026. Index performance calculated in USD terms. Data from Bloomberg. Past performance is not an indication of future results
About eToro:
eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.
Disclaimers:
Not investment advice. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro is a group of companies that are authorised and regulated in their respective jurisdictions. The regulatory authorities overseeing eToro include:
- The Financial Conduct Authority (FCA) in the UK
- The Cyprus Securities and Exchange Commission (CySEC) in Cyprus
- The Australian Securities and Investments Commission (ASIC) in Australia
- The Financial Services Authority (FSA) in the Seychelles
- The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the UAE
- The Monetary Authority of Singapore (MAS) in Singapore
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication. ADRs are not offered by eToro USA.
Regulation and License numbers:
UK
eToro (UK) Ltd, is authorised and regulated by the Financial Conduct Authority (“FCA”). Firm Reference Number: 583263. Registered in England under Company No. 07973792
Europe
eToro (Europe) Ltd, is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) under licence number 109/10. Registered in Cyprus under Company No. HE 200585.
Middle East:
eToro (ME) Limited, is licensed and regulated by the Abu Dhabi Global Market (“ADGM”)’s Financial Services Regulatory Authority (“FSRA“) as an Authorised Person to conduct the Regulated Activities of (a) Dealing in Investments as Principal (Matched), (b) Arranging Deals in Investments, (c) Providing Custody, (d) Arranging Custody and (e) Managing Assets (under Financial Services Permission Number 220073) under the Financial Services and Market Regulations 2015 (“FSMR”). Registered Office and its principal place of business: Office 26 and 27, 25th floor, Al Sila Tower, ADGM Square, Al Maryah Island, Abu Dhabi, United Arab Emirates.
Australia:
eToro AUS Capital Limited (AFSL number 491139) and eToro Asset Management Limited (AFSL 319738) (“collectively, eToro Australia”) is regulated by the Australian Securities & Investments Commission (“ASIC”) for the provision of financial services and products.
Singapore:
eToro Singapore Pte. Ltd. is licensed under the Capital Markets Services Licence (“CMSL”) (Licence number: CMS101824) with the Monetary Authority of Singapore (“MAS”).
