S&P 500 Returns since 2000 (2024)

FAQs

What is the average rate of return on the S&P 500 since 2000? ›

Stock market returns since 2000

This is a return on investment of 503.42%, or 7.64% per year. This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 230.35% cumulatively, or 5.02% per year.

2000: Following a surge of investing and speculation in internet-related ventures during the 1990s, the Dot-Com Bubble burst in March 2000. The S&P 500 dropped nearly 50% and took seven years to recover.

The S&P 500 average return over the past decade has come in at around 10.2%, just under the long-term historic average of 10.7% since the benchmark index was introduced 65 years ago.

$10,000 invested in the S&P 500 at the beginning of 2000 would have grown to $32,527 over 20 years — an average return of 6.07% per year.

The index has returned a historic annualized average return of around 10.26% since its 1957 inception through the end of 2023.

There are two general periods where stocks realized a negative return over a 10-year span: one during the Great Depression in the 1930s and the other during the Great Recession in 2008. Notice that these periods were brief and returns quickly recovered to 10%+.

Put simply, investors sell their holdings in a bear market out of fear that stock prices will go down. No other reason is required. This is not the case in the Indian stock market today. Thus, we can conclude that as things stand at the time of writing, a bear market in 2024 doesn't seem likely.

The bounce-back from the 2008 crash took five and a half years, but an additional half year to regain your purchasing power.

Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.

Should you put all your money in the S&P 500? ›

Investing in an S&P 500 fund can instantly diversify your portfolio and is generally considered less risky than purchasing individual stocks directly. Because S&P 500 index funds or ETFs track the performance of the S&P 500, when that index does well, your investment will, too. (The opposite is also true, of course.)

Here's how much you would have now if you invested in the S&P 500 20 years ago, based on varying starting amounts: $1,000 would grow to $2,533. $5,000 would grow to $12,665. $10,000 would grow to $25,331.

For example, if you are able to commit to investing $500 a month in an S&P 500 index fund like the Vanguard 500 Fund (NYSEMKT: VOO), you'll eventually have $1 million, and that includes paying the 0.03% expense ratio in the ETF, meaning you'll pay 3 cents each year for every $100 you have invested in the index fund.

If you take your $100,000 and put it in an S&P 500 index fund, you could end up with over $1 million within 24 years if the index produces returns in line with its historical average. If you keep saving, you can get there even faster.

Overall, the S&P 500 grew at a compound annual growth rate of 13.8% over the last 15 years. Adjusting for inflation, the index grew 11.2% per year during that period.

Using Shiller's data, since 1971 the S&P 500 has delivered an annualized return of 7.58%—or 10.51% with dividends reinvested. Investors who keep their money at work in the S&P 500 have been able to enjoy an annualized stock market return of around 10% over the long haul.

In 1980, had you invested a mere $1,000 in what went on to become the top-performing stock of S&P 500 (^GSPC -1.73%), then you would be sitting on a cool $1.2 million today. That equates to a total return of 120,936%. The stock? None other than Gap (GPS -6.10%).