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S&P 500 Index Fund Average Annual Return Rate

Here's why investing in an S&P 500 index fund could pay off nicely over the long term.

By Keith Speights – Updated Aug 7, 2025 at 2:44PM | Fact-checked by Margo Winton Parodi

Key Points

  • Investing in the S&P 500 index offers exposure to 500 of the largest U.S. companies, simplifying diversified investing.
  • Historically, the S&P 500 has returned an average of over 10% annually, showcasing long-term gains.
  • S&P 500 funds, available as ETFs or mutual funds, provide a practical option for investing in the S&P 500.
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