Javelin Strategy & Research just released a 12-page whitepaper analyzing investments through Lending Club between June 2007 and December 2008. They found the overall investment return averaged 9.05%, with a median return of 10.48%.
Compared to other investments, Javelin reported:
"If an individual had invested $10,000 in June 2007, a typical (median) loan portfolio through Lending Club would have grown to $11,594 by November 2008. That return would have outpaced other common investments or indexes such as the Standard & Poor’s 500 Index and the tech‐stock heavy Nasdaq Composite Index, which suffered staggering losses that would have left the investor with $6,289 and $6,604, respectively. Meanwhile, the same investment in government‐insured 1‐year CDs and rock‐solid 6‐month Treasury bills would have grown to $10,678 and $10,501, respectively. (This comparison factors in Lending Club’s 1% service charge but does not include fees and other transaction costs for the other investments.)"
Read the whitepaper. Open a Lending Club account.