S&P 500 Annual Returns By Year [1928-2022] Updated CAGR & Charts


S&P 500 Return (Till July 2022)

IndexS&P 500 (SPX)
Founded1957
Total Stock505
YTD Return-20.58%
Market Cap$31.90 Trillion
Biggest Gain38.06% (1958)
Biggest Fall-38.49% (2008)
Data Updated01 July 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 – 28 Feb 2022), the S&P Index has generated around 10%-11% annual average returns, and 7% inflation-adjusted returns based on historical data.

If we calculate return by day then – $1000 Invested in the SPX 500 during June of 1954, it would have grown to nearly $1,342,470 by the End of 2021 (Dividends Reinvested).

S&P 500 YTD Returns 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 2022On Aug

S&P 500 Historical Annual Return (1928 to 2022)

In the below chart you easily can check the annual return of the S&P 500 index (Price Return) from 1928 to June 2022 –

SPX Historical Price Chart (1880-2022)

S&P 500 Historical Chart Till July 2022

In this table, you can see the Performance of the S&P 500 with the opening price, and the closing price:-

YearOpening PriceClosing Price
20224,778.14
20213,700.654,793.06
20203,257.853,756.07
20192,510.033,230.78
20182,695.812,506.85
20172,257.832,673.61
20162,012.662,238.83
20152,058.202,043.94
20141,831.982,058.90
20131,462.421,848.36
20121,277.061,426.19
20111,271.871,257.60
20101,132.991,257.64
2009931.801,115.10
20081,447.16903.25
20071,416.601,468.36
20061,268.801,418.30
20051,202.081,248.29
20041,108.481,211.92
2003909.031,111.92
20021,154.67879.82
20011,283.271,148.08
20001,455.221,320.28
19991,228.101,469.25
1998975.041,229.23
1997737.01970.43
1996620.73740.74
1995459.11615.93
1994465.44459.27
1993435.38466.45
1992417.26435.71
1991326.45417.09
1990359.69330.22
1989275.31353.40
1988255.94277.72
1987246.45247.08
1986209.59242.17
1985165.37211.28
1984164.04167.24
1983138.34164.93
1982122.74140.64
1981136.34122.55
1980105.76135.76
197996.73107.94
197893.8296.11
1977107.0095.10
197690.90107.46
197570.2390.19
197497.6868.56
1973119.1097.55
1972101.67118.05
197191.15102.09
197093.0092.15
1969103.9392.06
196896.11103.86
196780.3896.47
196692.1880.33
196584.2392.43
196475.4384.75
196362.6975.02
196270.9663.10
196157.5771.55
196059.9158.11
195955.4459.89
195840.3355.21
195746.2039.99
195645.1646.67
195536.7545.48
195424.9535.98
195326.5424.81
195223.8026.57
195120.7723.77
195016.6620.41
194914.9516.76
194815.3415.20
194715.2015.30
194617.2515.30
194513.3317.36
194411.6613.28
19439.8411.67
19428.899.77
194110.488.69
194012.6310.58
193913.0812.49
193810.5213.21
193717.0210.55
193613.4017.18
19359.5113.43
193410.119.50
19336.8310.10
19327.826.89
193115.858.12
193021.1815.34
192924.8121.45
192817.7624.35

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 a 15-year period, nearly 90% of actively managed investment funds failed to beat the index funds or market. It is a safe & diversified investment that has historically kept it secure from too much market fluctuation and provides great returns in long run.

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.

Is S&P 500 Better Than Nasdaq 100?

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

What Affects the S&P 500 Returns?

Generally, there 3 things that 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. Instead of being 10% of the average return, the CPI-adjusted average return falls to 7%.

S&P 500 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 a bad performance, but those who invest or average during the market bottom have great portfolio returns.

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

The Question is How to Identify the Best Time to Enter In the Stock Market?

So for that, 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 bought any stock or etf and sell with profit under 12 months period then you will be eligible for short-term capital gain tax, which is normally higher than Long-term capital gains tax rates. So think for long-term investment, you can take help from this article “How to Pay Less” and understand how you can save more.

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.

Also, See – Nasdaq ETF


Disclaimer ✋

The information included on this site is for educational purposes only and is not intended to be 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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