The S&P 500 is one of the most popular stock indexes for tracking the performance of the U.S. stock market. It tracks approximately 500 of the biggest companies in the U.S. by market capitalization.
Many investors use the S&P 500 as a benchmark for their own portfolio and overall stock market returns. Some investors invest directly in the S&P 500 constituents using an index fund. As such, tracking its annual returns can provide some insight into what to expect from your stock portfolio.
Table of S&P 500 annual returns
Below is a table showing the historical returns of the S&P 500 dating back to 1928. Note that before 1957, the index tracked just 90 companies before expanding to 500.
| Year | Average Closing Price | Year Open | Year High | Year Low | Year Close | Nominal Return | Total Return (Dividends Reinvested) | Real Total Return (Inflation Adjusted) |
|---|---|---|---|---|---|---|---|---|
| 1928 | $19.94 | $17.76 | $24.35 | $16.95 | $24.35 | 37.88% | 42.70% | 44.36% |
| 1929 | $26.12 | $24.81 | $31.86 | $17.66 | $21.45 | -11.91% | -7.93% | -8.46% |
| 1930 | $21.03 | $21.18 | $25.92 | $14.44 | $15.34 | -28.48% | -23.92% | -18.72% |
| 1931 | $13.63 | $15.85 | $18.17 | $7.72 | $8.12 | -47.07% | -41.72% | -35.73% |
| 1932 | $6.91 | $7.56 | $9.31 | $4.40 | $6.92 | -14.78% | -8.62% | 1.84% |
| 1933 | $9.06 | $6.83 | $12.20 | $5.53 | $9.97 | 44.08% | 50.43% | 49.29% |
| 1934 | $9.83 | $10.11 | $11.82 | $8.36 | $9.50 | -4.71% | -0.20% | -1.69% |
| 1935 | $10.58 | $9.51 | $13.46 | $8.06 | $13.43 | 41.37% | 46.32% | 42.07% |
| 1936 | $15.44 | $13.40 | $17.69 | $13.40 | $17.18 | 27.92% | 33.28% | 31.38% |
| 1937 | $15.38 | $16.93 | $18.67 | $10.17 | $10.55 | -38.59% | -33.93% | -35.77% |
| 1938 | $11.47 | $10.52 | $13.91 | $8.50 | $13.14 | 24.55% | 29.38% | 33.08% |
| 1939 | $12.05 | $13.08 | $13.23 | $10.42 | $12.46 | -5.18% | -0.46% | -0.46% |
| 1940 | $11.01 | $12.63 | $12.77 | $8.99 | $10.58 | -15.09% | -9.71% | -10.35% |
| 1941 | $9.83 | $10.48 | $10.86 | $8.37 | $8.69 | -17.86% | -11.15% | -19.18% |
| 1942 | $8.66 | $8.89 | $9.77 | $7.47 | $9.77 | 12.43% | 19.22% | 9.34% |
| 1943 | $11.52 | $9.92 | $12.64 | $9.89 | $11.67 | 19.45% | 25.69% | 22.08% |
| 1944 | $12.47 | $11.66 | $13.28 | $11.56 | $13.28 | 13.80% | 19.28% | 16.60% |
| 1945 | $15.13 | $13.33 | $17.68 | $13.21 | $17.36 | 30.72% | 35.69% | 32.71% |
| 1946 | $17.09 | $17.25 | $19.25 | $14.12 | $15.30 | -11.87% | -7.78% | -21.93% |
| 1947 | $15.16 | $15.20 | $16.14 | $13.77 | $15.30 | 0.00% | 5.49% | -3.08% |
| 1948 | $15.55 | $15.34 | $17.06 | $13.84 | $15.20 | -0.65% | 5.42% | 2.36% |
| 1949 | $15.22 | $14.95 | $16.79 | $13.55 | $16.79 | 10.46% | 17.96% | 20.46% |
| 1950 | $18.40 | $16.66 | $20.43 | $16.66 | $20.43 | 21.68% | 30.43% | 23.13% |
| 1951 | $22.32 | $20.77 | $23.85 | $20.69 | $23.77 | 16.35% | 23.25% | 16.27% |
| 1952 | $24.50 | $23.80 | $26.59 | $23.09 | $26.57 | 11.78% | 17.71% | 16.83% |
| 1953 | $24.72 | $26.54 | $26.66 | $22.71 | $24.81 | -6.62% | -1.17% | -1.90% |
| 1954 | $29.72 | $24.95 | $35.98 | $24.80 | $35.98 | 45.02% | 51.23% | 52.36% |
| 1955 | $40.50 | $36.75 | $46.41 | $34.58 | $45.48 | 26.40% | 30.96% | 30.47% |
| 1956 | $46.64 | $45.16 | $49.64 | $43.11 | $46.67 | 2.62% | 6.44% | 3.36% |
| 1957 | $44.42 | $46.20 | $49.13 | $38.98 | $39.99 | -14.31% | -10.48% | -13.00% |
| 1958 | $46.20 | $40.33 | $55.21 | $40.33 | $55.21 | 38.06% | 42.44% | 39.97% |
| 1959 | $57.42 | $55.44 | $60.71 | $53.58 | $59.89 | 8.48% | 11.79% | 9.89% |
| 1960 | $55.85 | $59.91 | $60.39 | $52.20 | $58.11 | -2.97% | 0.28% | -1.06% |
| 1961 | $66.27 | $57.57 | $72.64 | $57.57 | $71.55 | 23.13% | 26.60% | 25.76% |
| 1962 | $62.32 | $71.55 | $71.96 | $51.35 | $63.10 | -11.81% | -8.83% | -10.03% |
| 1963 | $69.86 | $63.10 | $75.36 | $62.32 | $75.02 | 18.89% | 22.50% | 20.52% |
| 1964 | $81.37 | $75.02 | $86.80 | $74.82 | $84.75 | 12.97% | 16.30% | 15.18% |
| 1965 | $88.16 | $84.75 | $93.30 | $80.73 | $92.43 | 9.06% | 12.27% | 10.15% |
| 1966 | $85.18 | $92.43 | $94.72 | $72.28 | $80.33 | -13.09% | -9.99% | -13.00% |
| 1967 | $91.96 | $80.33 | $98.31 | $79.43 | $96.47 | 20.09% | 23.73% | 20.08% |
| 1968 | $98.38 | $96.47 | $109.37 | $86.73 | $103.86 | 7.66% | 10.84% | 5.85% |
| 1969 | $97.77 | $103.86 | $106.74 | $88.04 | $92.06 | -11.36% | -8.32% | -13.67% |
| 1970 | $83.15 | $92.06 | $94.25 | $68.61 | $92.15 | 0.10% | 3.51% | -1.95% |
| 1971 | $98.32 | $92.15 | $105.60 | $89.34 | $102.09 | 10.79% | 14.12% | 10.51% |
| 1972 | $109.13 | $102.09 | $119.79 | $100.87 | $118.05 | 15.63% | 18.72% | 14.81% |
| 1973 | $107.44 | $118.06 | $121.74 | $91.05 | $97.55 | -17.37% | -14.50% | -21.35% |
| 1974 | $82.78 | $97.55 | $101.05 | $60.96 | $68.56 | -29.72% | -26.03% | -34.15% |
| 1975 | $86.18 | $68.65 | $96.58 | $68.65 | $90.19 | 31.55% | 36.92% | 28.04% |
| 1976 | $102.04 | $90.19 | $108.72 | $89.81 | $107.46 | 19.15% | 23.64% | 17.90% |
| 1977 | $98.18 | $107.46 | $107.97 | $90.01 | $95.10 | -11.50% | -7.16% | -12.99% |
| 1978 | $96.11 | $95.10 | $108.05 | $86.45 | $96.11 | 1.06% | 6.39% | -2.41% |
| 1979 | $103.00 | $96.11 | $112.16 | $95.22 | $107.94 | 12.31% | 18.19% | 4.32% |
| 1980 | $118.71 | $107.94 | $141.96 | $94.23 | $135.76 | 25.77% | 31.48% | 16.85% |
| 1981 | $128.04 | $135.76 | $140.32 | $110.19 | $122.55 | -9.73% | -4.85% | -12.64% |
| 1982 | $119.71 | $122.55 | $144.36 | $102.20 | $140.64 | 14.76% | 20.37% | 15.93% |
| 1983 | $160.47 | $140.65 | $172.65 | $138.08 | $164.93 | 17.27% | 22.31% | 17.84% |
| 1984 | $160.46 | $164.93 | $170.41 | $147.26 | $167.24 | 1.40% | 5.97% | 1.94% |
| 1985 | $186.83 | $167.20 | $213.08 | $163.36 | $211.28 | 26.33% | 31.06% | 26.26% |
| 1986 | $236.39 | $211.28 | $254.87 | $202.60 | $242.17 | 14.62% | 18.54% | 17.25% |
| 1987 | $287.00 | $242.17 | $337.89 | $216.46 | $247.08 | 2.03% | 5.67% | 1.18% |
| 1988 | $265.88 | $247.10 | $283.95 | $240.17 | $277.72 | 12.40% | 16.35% | 11.42% |
| 1989 | $323.05 | $277.72 | $360.44 | $273.81 | $353.40 | 27.25% | 31.23% | 25.40% |
| 1990 | $334.63 | $353.40 | $369.78 | $294.51 | $330.22 | -6.56% | -3.14% | -8.71% |
| 1991 | $376.19 | $330.20 | $418.32 | $309.35 | $417.09 | 26.31% | 30.00% | 26.14% |
| 1992 | $415.75 | $417.03 | $442.65 | $392.41 | $435.71 | 4.46% | 7.43% | 4.41% |
| 1993 | $451.61 | $435.70 | $471.29 | $426.88 | $466.45 | 7.06% | 9.94% | 7.00% |
| 1994 | $460.42 | $466.51 | $482.85 | $435.86 | $459.27 | -1.54% | 1.28% | -1.35% |
| 1995 | $541.72 | $459.21 | $622.88 | $457.20 | $615.93 | 34.11% | 37.11% | 33.72% |
| 1996 | $670.49 | $615.93 | $762.12 | $597.29 | $740.74 | 20.26% | 22.68% | 18.74% |
| 1997 | $873.43 | $740.74 | $986.25 | $729.55 | $970.43 | 31.01% | 33.10% | 30.87% |
| 1998 | $1,085.50 | $970.43 | $1,244.93 | $912.83 | $1,229.23 | 26.67% | 28.34% | 26.30% |
| 1999 | $1,327.33 | $1,229.23 | $1,473.10 | $1,205.46 | $1,469.25 | 19.53% | 20.88% | 17.72% |
| 2000 | $1,427.22 | $1,469.25 | $1,552.87 | $1,254.07 | $1,320.28 | -10.14% | -9.03% | -12.01% |
| 2001 | $1,194.18 | $1,320.28 | $1,383.37 | $944.75 | $1,148.08 | -13.04% | -11.85% | -13.20% |
| 2002 | $993.93 | $1,148.08 | $1,176.97 | $768.63 | $879.82 | -23.37% | -21.97% | -23.78% |
| 2003 | $965.23 | $879.82 | $1,112.56 | $788.90 | $1,111.92 | 26.38% | 28.36% | 25.99% |
| 2004 | $1,130.65 | $1,111.92 | $1,217.33 | $1,060.72 | $1,211.92 | 8.99% | 10.74% | 7.25% |
| 2005 | $1,207.23 | $1,211.92 | $1,275.80 | $1,136.15 | $1,248.29 | 3.00% | 4.83% | 1.37% |
| 2006 | $1,310.46 | $1,248.29 | $1,431.81 | $1,219.29 | $1,418.30 | 13.62% | 15.61% | 12.75% |
| 2007 | $1,477.18 | $1,418.03 | $1,576.09 | $1,363.98 | $1,468.36 | 3.53% | 5.48% | 1.35% |
| 2008 | $1,220.04 | $1,467.97 | $1,471.77 | $741.02 | $903.25 | -38.49% | -36.55% | -36.61% |
| 2009 | $948.05 | $902.99 | $1,130.38 | $666.79 | $1,115.10 | 23.45% | 25.94% | 22.60% |
| 2010 | $1,139.97 | $1,116.56 | $1,262.60 | $1,010.91 | $1,257.64 | 12.78% | 14.82% | 13.13% |
| 2011 | $1,267.64 | $1,257.62 | $1,370.58 | $1,074.77 | $1,257.60 | 0.00% | 2.10% | -0.84% |
| 2012 | $1,379.35 | $1,258.86 | $1,474.51 | $1,258.86 | $1,426.19 | 13.41% | 15.89% | 13.91% |
| 2013 | $1,643.80 | $1,426.19 | $1,849.44 | $1,426.19 | $1,848.36 | 29.60% | 32.05% | 30.10% |
| 2014 | $1,931.38 | $1,845.86 | $2,093.55 | $1,737.92 | $2,058.90 | 11.39% | 13.52% | 12.67% |
| 2015 | $2,061.07 | $2,058.90 | $2,134.72 | $1,867.01 | $2,043.94 | -0.73% | 1.38% | 0.65% |
| 2016 | $2,094.65 | $2,038.20 | $2,277.53 | $1,810.10 | $2,238.83 | 9.54% | 11.77% | 9.50% |
| 2017 | $2,449.08 | $2,251.57 | $2,694.97 | $2,245.13 | $2,673.61 | 19.42% | 21.61% | 19.09% |
| 2018 | $2,746.21 | $2,683.73 | $2,940.91 | $2,346.58 | $2,506.85 | -6.24% | -4.23% | -6.02% |
| 2019 | $2,913.36 | $2,476.96 | $3,247.93 | $2,443.96 | $3,230.78 | 28.88% | 31.20% | 28.27% |
| 2020 | $3,217.86 | $3,244.67 | $3,760.20 | $2,191.86 | $3,756.07 | 16.26% | 18.06% | 16.48% |
| 2021 | $4,273.39 | $3,764.61 | $4,808.93 | $3,662.71 | $4,766.18 | 26.89% | 28.50% | 20.05% |
| 2022 | $4,098.51 | $4,778.14 | $4,818.62 | $3,491.58 | $3,839.50 | -19.44% | -18.04% | -23.01% |
Important takeaways
There are a lot of different numbers cited for the average annual return of the index. And while the average return is easy to compute, it’s important to define what you’re computing.
The average annual return since 1928 is 7.7%.
But that overstates the compound annual growth rate of the index, which was just 5.8%. Compound annual growth is a more accurate indication of how much an investment will grow over time.
Furthermore, those numbers ignore the impact of dividends and the potential to reinvest dividends, otherwise known as total return. The total return of the S&P 500 produced a compound annual growth rate of 9.7% over the past 95 years.
Unfortunately, inflation eats into those returns, which means the real compound annual growth rate of the index with dividends reinvested is 6.5%.
That last number is the most valuable for financial planning and determining how much spending power an investment today might produce well into the future. It also happens to be much lower than the commonly used 7% or 8% expected returns from the market most experts use in their planning assumptions.
Related investing topics
The other main takeaway is that the S&P 500 doesn’t produce those 6.5% real returns year in and year out. As you can see real returns fluctuate significantly, with the index producing a real return of more than 52% in 1954, but dropping a whopping 36% in 2008.
The variance on real annual returns for the index is relatively high compared to other investment options, and there’s about a one-third chance you’ll lose money by investing in an S&P 500 index fund in any given year.
But investing in the stock market over the long run will pay off for investors, and the historical returns of the S&P 500 show just that. The index consistently beats inflation over long time horizons. There’s no period in the history of the index of at least 18 years that hasn’t produced a positive real return on investment. And a typical investment over that period will triple your spending power.
