S&P 500 Historical Annual Returns (1928-2022) Updated Monthly


S&P 500 Return (1970-2022)

S&P 500 (SPX)DATA
Index Founded1957
Total Stock503
YTD Return-14.39%
Market Cap$33.21 Trillion
Biggest Gain38.06% (1958)
Biggest Fall-38.49% (2008)
Data Updated01 Dec 2022

One of the most popular equity indices, the Standard & Poor’s Index, was created in 1926 to reflect the performance of the top 500 largest companies in the US Stock Market. In the last 95 years (1926 – 2022), the S&P 500 Historical Annual Return is around 10% to 11%, and 7% inflation-adjusted returns are based on historical data.

If we calculate return by day, then – $1000 Invested in the SPX 500 during Jan of 1990, it would have grown to approximately $25,752 by the End of 2021 (Dividends Reinvested).

S&P 500 Return By Month (2022)

MonthReturn
Jan 2022-5.26%
Feb 2022-3.14%
Mar 20223.58%
Apr 2022-8.80%
May 20220.01%
June 2022-8.39%
July 20229.11%
Aug 2022-4.24%
Sep 2022-9.34%
Oct 20227.99%
Nov 20225.38%
Dec 2022N.A.
SPX Monthly Return

S&P 500 Annual Return By Year (1928 to 2022)

In the below chart, you can quickly check the Historical Annual Return of the S&P 500 index (Price Return) from 1928 to 2022 –

Is S&P 500 a good investment?

The S&P 500 (SPX) is an index of the 500 largest companies in the U.S., weighted by market capitalization – Including many large, brand-name companies like Alphabet (Google), JPMorgan Chase, Amazon, Exxon Mobil, Tesla, and Apple.

According to a 2020 report, over 15 years, nearly 90% of actively managed investment funds failed to beat the index funds or market. However, it is a safe & diversified investment that has historically kept it secure from too much market fluctuation and provides good returns in the long run.

S&P 500 Price Chart
S&P 500 Historical Chart

Also, many experts say that beginner or individual investors can start an investment gurney with S&P 500 Index Funds and improve their portfolio’s stability.

S&P 500 Vs. Nasdaq 100

No doubt that the Nasdaq 100 Return outperformed the S&P 500 and Dow Jones Performance, but you can see in the below chart that the risk is also increased with the reward –

What Affects the S&P 500 Returns?

Generally, three things can affect the SPX/Stock Market Returns –

#1 Inflation: Investors can use historical data to identify How Inflation Affects The Stock Market. When comparing the actual returns against nominal returns, investors can see how inflation reduces returns. For example, instead of being 10% of the average return, the CPI-adjusted average return falls to 7%.

How Inflation Affect S&P 500 Return
SPX vs Inflation

#2 Timing: You’ve decided to invest in stocks and ETFs. That’s an important step, but your investment strategy has one more thing to consider: timing and entry points affect the returns. A new study shows that the best timings make up 50% more profit.

For Example – An investor who bought between 2017 and 2019 and sold in the 2020 (Covid) recession has experienced lousy performance. Still, those who invest or average during the market bottom have great portfolio returns.

Are We In A Recession? Check Out In 1-Minute

How to Identify the Best Time to Enter In the Stock Market?

So you can use a few market valuation indicators like S&P 500 PE Ratio, Buffet Indicator, and Shiller PE Ratio. That helps investors & traders understand whether the stock market is undervalued or overvalued. 

#3 Capital Gain Tax: Usually, if you buy any stock or ETF and sell with profit under 12 months period, you will be eligible for short-term capital gain tax, which is usually higher than Long-term capital gains tax rates. So think about long-term investment. You can take help from this “How to Pay Less” article and understand how to save more.

FAQ’s

Q. S&P 500 Annual Returns Last 10 Years?

The SP 500’s past ten years’ return is almost 15%, and 11.58% for the last five years. Speaking of returns over the previous 100 years, the average return is around 10%–11%, with inflation-adjusted returns of 7%.

Q. Does the S&P 500 Index Pay Dividend?

Yes. Many companies in the index provide dividends; you can find out by index dividend yield. And if you want to know which companies pay regular dividends, you can track dividend aristocrats and dividend kings.

Q. How to Invest in S&P 500 Index?

The best way to invest in an Index is S&P 500 ETF (Exchange Trade Fund). They have a low expense ratio, the same return as an index, and are tradable like stocks. But before choosing any instrument to invest in S&P 500, make sure you know the pros and cons of each method because these instruments have their advantages and demerits.


Disclaimer ✋

The information included on this site is for educational purposes and is not intended as a substitute for investment advice. Data on past performance, where given, is not necessarily a guide to future performance. So before investing, you should carefully consider the Fund’s investment objectives, risks, charges, and expenses.


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