S&P 500 Index
Historical returns and performance of the U.S. stock market benchmark
What is the S&P 500?
The S&P 500 (Standard & Poor's 500) is a stock market index tracking the performance of 500 of the largest publicly traded companies in the United States. It is widely regarded as the best single gauge of large-cap U.S. equities and covers approximately 80% of available U.S. market capitalization.
The index is market-cap weighted, meaning larger companies like Apple, Microsoft, and Amazon have a greater influence on the index's performance than smaller companies.
On StocksBio, we use SPY (SPDR S&P 500 ETF Trust) as our S&P 500 benchmark. SPY is the oldest and most liquid ETF that tracks the S&P 500 index, with an expense ratio of just 0.09%.
Major US Stock Market Indices
Compare the S&P 500 to other key US market benchmarks
500 largest US companies
100 largest non-financial NASDAQ stocks
30 blue-chip industrial companies
2000 small-cap US companies
Entire US stock market
S&P 500 Historical Returns
Based on SPY ETF data. $1,000 invested at the start of each period.
Growth of $10,000 in the S&P 500
How a $10,000 investment in SPY would have grown over time. Even with crashes in 2000, 2008, and 2020, the long-term trend has been consistently upward.
S&P 500 Annual Returns by Year
Year-by-year performance via SPY. The index has been positive in roughly 73% of calendar years.
| Year | Return | Performance |
|---|---|---|
| 2026 (YTD) | -2.6% | |
| 2025 | +17.8% | |
| 2024 | +25.0% | |
| 2023 | +26.2% | |
| 2022 | -18.3% | |
| 2021 | +28.8% | |
| 2020 | +18.4% | |
| 2019 | +31.3% | |
| 2018 | -4.6% | |
| 2017 | +21.8% | |
| 2016 | +12.0% | |
| 2015 | +1.2% | |
| 2014 | +13.5% | |
| 2013 | +32.5% | |
| 2012 | +15.9% | |
| 2011 | +1.8% | |
| 2010 | +15.1% | |
| 2009 | +26.7% | |
| 2008 | -37.0% | |
| 2007 | +5.2% | |
| 2006 | +15.8% | |
| 2005 | +4.8% | |
| 2004 | +10.7% | |
| 2003 | +28.2% | |
| 2002 | -21.7% | |
| 2001 | -11.8% | |
| 2000 | -9.8% | |
| 1999 | +20.5% | |
| 1998 | +28.8% | |
| 1997 | +33.6% | |
| 1996 | +22.7% | |
| 1995 | +38.3% | |
| 1994 | +0.3% | |
| 1993 (YTD) | +8.0% |
S&P 500 CAGR (Compound Annual Growth Rate)
The S&P 500's long-term average annual return (CAGR) has historically been around 10% before inflation, or roughly 7% after adjusting for inflation. This makes it a common benchmark for evaluating individual stock and portfolio performance.
S&P 500 Best and Worst Years
Best Years
Worst Years
Despite severe bear markets, the S&P 500 has always recovered and made new all-time highs. Patience has historically been rewarded.
S&P 500 Monthly Statistics
S&P 500 Monthly Returns Heatmap
Month-by-month returns for the last 10 years. Historically, September is the weakest month and November-December tend to be strong.
S&P 500 Major Crashes and Bear Markets
Every major drawdown over 15% from peak to trough. Bear markets occur roughly every 5-7 years.
| Peak | Trough | Decline | Context |
|---|---|---|---|
| 1998-06 | 1998-08 | -15.0% | Dot-com bubble |
| 2000-08 | 2002-09 | -45.0% | Dot-com bubble |
| 2007-10 | 2009-02 | -50.8% | Financial Crisis |
| 2020-01 | 2020-03 | -19.9% | COVID-19 crash |
| 2021-12 | 2022-09 | -24.0% | Fed rate hikes |
Compare Stocks vs S&P 500
See how individual stocks have performed against the market benchmark
Understanding the S&P 500
How is the S&P 500 Calculated?
The S&P 500 is a market-capitalization-weighted index. This means each company's weight in the index is proportional to its total market value (share price × shares outstanding). As of 2026, the top 10 companies make up over 30% of the entire index.
S&P 500 Sectors
The index includes companies from all 11 GICS sectors: Technology, Healthcare, Financials, Consumer Discretionary, Communication Services, Industrials, Consumer Staples, Energy, Utilities, Real Estate, and Materials. Technology is typically the largest sector by weight.
Why Use the S&P 500 as a Benchmark?
The S&P 500 is the most commonly used benchmark for U.S. equity performance because:
- It covers ~80% of U.S. market capitalization
- It includes companies across all sectors
- It has a long track record (dating back to 1957)
- It's easily investable through ETFs like SPY, VOO, and IVV
SPY vs the S&P 500 Index
On StocksBio, we use SPY (SPDR S&P 500 ETF Trust) data for our S&P 500 calculations. SPY tracks the S&P 500 index very closely but has a small expense ratio of 0.09% per year. Over very long periods (20+ years), this may cause SPY to slightly underperform the actual index by approximately 1-2% total.
Frequently Asked Questions
What is the average annual return of the S&P 500?
The S&P 500 has historically returned about 10% per year on average before inflation, or roughly 7% after inflation. Over the past 10 years, the CAGR has been +14.3%.
Is the S&P 500 a good investment?
The S&P 500 is widely considered one of the best long-term investments. It provides broad diversification across 500 large US companies, has low costs through index ETFs like SPY and VOO, and has produced positive returns over every 20-year period in history.
How much would $10,000 invested in the S&P 500 be worth?
$10,000 invested in SPY 10 years ago would be worth approximately $38,020 today. Over 20 years, $10,000 would have grown to approximately $73,910.
What is the difference between SPY and VOO?
Both SPY and VOO track the S&P 500. SPY (0.09% expense ratio) is the oldest and most liquid, preferred by traders. VOO (0.03%) is cheaper for long-term buy-and-hold investors. Performance is nearly identical.
How many stocks are in the S&P 500?
The S&P 500 contains approximately 500 of the largest publicly traded US companies. Companies must meet criteria for market cap, liquidity, and profitability to be included.
What are the best and worst years for the S&P 500?
The best recent years include 1995 (+38.3%), 1997 (+33.6%), 2013 (+32.5%). The worst include 2008 (-37.0%), 2002 (-21.7%), 2022 (-18.3%).
S&P 500 ETF Comparisons
S&P 500 Sector Breakdown
Explore individual sector performance: