Best S&P 500 index funds of June 2023 (2024)

FAQs

Best S&P 500 index funds of June 2023? ›

If you invested $100 in the S&P 500 at the beginning of 1930, you would have about $566,135.36 at the end of 2023, assuming you reinvested all dividends. This is a return on investment of 566,035.36%, or 9.71% per year.

If you invested $100 in the S&P 500 at the beginning of 1930, you would have about $566,135.36 at the end of 2023, assuming you reinvested all dividends. This is a return on investment of 566,035.36%, or 9.71% per year.

The S&P 500 is up about 9% so far in 2023 after falling 19.4% in 2022. Gains this year are largely thanks to big growth and technology stocks, which have rallied as other areas of the market have faltered, like regional banks.

Goldman's chief U.S. equity strategist David Kostin said in a note to clients the firm's 2023 earnings per share forecast for the S&P 500 of $224 remains unchanged and assumes a soft landing for the U.S. economy, as the economics team projects only a 25% probability of a recession over the next 12 months.

If we move our starting point to 1941, then July falls back and April remains the S&P 500's strongest month, with a 1.7% average gain, according to CNBC. Every other month in that period averages around 0.7%.

The monthly historical returns of both the S&P 500 Index and the Dow Jones Industrial Average show that the best months for the stock market are November, December, and April. The months of October and January also performed well but not as well as the months of April, November, and December.

And if you had put $1,000 into the S&P 500 about a decade ago, the amount would have more than tripled to $3,217 as of April 20, according to CNBC's calculations.

Where will the S&P 500 be in 10 years? ›

As you can see from the chart, investing $5,000 annually in the S&P 500 would make you a millionaire in a little over 30 years, assuming average 10.25% annual returns.

How the 4% Rule Works. The 4% rule is easy to follow. In the first year of retirement, you can withdraw up to 4% of your portfolio's value. If you have $1 million saved for retirement, for example, you could spend $40,000 in the first year of retirement following the 4% rule.

Mutual funds are more flexible than index funds because the investment professional managing the fund can respond to market changes and change the fund's holdings. With an index fund, the fund only invests in securities within a specific index.

ETFs are more tax-efficient than index funds by nature, thanks to the way they're structured. When you sell an ETF, you're typically selling it to another investor who's buying it, and the cash is coming directly from them.

"In the first half of 2023, the S&P 500 is expected to re-test the lows of 2022, but a pivot from the Federal Reserve could drive an asset recovery later in the year, pushing the S&P 500 to 4,200 by year-end," the investment bank said in a research note.

The big picture: The S&P 500 is up 8.9% so far in 2023, or 9.7% including dividends. But the lion's share of that increase is due to the surging prices of a few of the largest companies.

After a dismal year in 2022 in which the stock market fell about 20%, the broader benchmark S&P 500 has gotten off to a strong start to 2023 and is already up roughly 8.2%. But it's also now crossed over 4,100, which is already above where most Wall Street analysts projected the market to finish by the end of the year.

S&P 500 3 Year Return (I:SP5003YR)

S&P 500 3 Year Return is at 37.30%, compared to 43.16% last month and 50.15% last year. This is higher than the long term average of 22.95%. The S&P 500 3 Year Return is the investment return received for a 3 year period, excluding dividends, when holding the S&P 500 index.

Key Points. The S&P 500 has fallen by 19.4% or more only seven times going back to 1923. The index has usually bounced back significantly in the past after a big sell-off. One important takeaway for investors is that the stock market goes up more over time than it goes down.

When should I invest in S&P 500? ›

Some say the best time to buy the S&P 500 is during price dips. This seems alluring at first – catching a cheap price and benefitting from the rebound. However, timing dips is notoriously tricky and fraught with risk.

S&P 500 6 Month Return is at 2.44%, compared to 7.68% last month and -9.52% last year. This is lower than the long term average of 3.04%.

Like the S&P 500, the best months for stocks in the DJIA are usually April, November, and December and the worst months are June, August, and September.

Best Day of the Week to Sell Stocks

If Monday may be the best day of the week to buy stocks, then Friday may be the best day to sell stock—before prices dip on Monday.

Whether you're nervous about market volatility or simply want an investment you can count on to keep your money safe, an S&P 500 ETF or index fund is a fantastic choice. This type of investment tracks the S&P 500 itself, meaning it includes the same stocks as the index and aims to mirror its performance.

But the good news is that historically, there's never been a bad time to invest in the S&P 500. Research and analytics firm Crestmont Research examined the rolling 20-year total returns of the S&P 500 since 1900 and found that all 103 of those years (from 1919 to 2022) produced positive returns.

Basic Info. S&P 500 1 Year Return is at 1.15%, compared to 0.91% last month and -1.71% last year. This is lower than the long term average of 6.29%. The S&P 500 1 Year Return is the investment return received for a 1 year period, excluding dividends, when holding the S&P 500 index.

So, how do you invest in the S&P 500? For new investors, the best way is through an ETF or mutual fund. While there are some differences between the two that we'll explain below, funds are a low-cost way to gain exposure to the S&P 500 and provide instant diversification to your portfolio.

S&P 500 funds offer broad exposure to the economy

Plenty of advisors like ETFs because of the low fees. “By far the easiest way to invest in the S&P 500 is an index ETF,” said David J. Haas, a financial advisor at Cereus Financial.

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification. But the number of ETFs is not what you should be looking at. Rather, you should consider the number of different sources of risk you are getting with those ETFs.

How much would $100 invested in the S&P 500 in 1980 be worth today? ›

Stock market returns since 1980

If you invested $100 in the S&P 500 at the beginning of 1980, you would have about $10,941.95 at the end of 2023, assuming you reinvested all dividends. This is a return on investment of 10,841.95%, or 11.47% per year.

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

Stock Market Average Yearly Return for the Last 20 Years

The historical average yearly return of the S&P 500 is 10.05% over the last 20 years, as of the end of April 2023. This assumes dividends are reinvested. Adjusted for inflation, the 20-year average stock market return (including dividends) is 7.335%.

How long has it historically taken a stock investment to double? NYU business professor Aswath Damodaran has done the math. According to his math, since 1949 S&P 500 investments have doubled ten times, or an average of about seven years each time.

U.S. equities may disappoint in 2023, but patient investors can find potential income and returns in other markets. A grueling bear market, touched off by decades-high inflation and an aggressive Federal Reserve response, made 2022 one of the most challenging years for investment returns in the last half century.

One of Wall Street's most vocal bears expects the stock market to fully recover its losses and trade to record highs in 2024. "This is not the end of the world.

If you wait until retirement is 20 years away, you will need to save $1,382 per month to hit the million-dollar mark, assuming a 10% return. At 6% you will need to save $2,195 per month!

S&P 500 ETFs are a relatively safe investment. However, they can still earn substantial returns over time. By investing consistently, it's possible to build a million-dollar portfolio.

Staying invested, especially for a prolonged period, is important if you want to earn returns in sync with the market while escaping short-term volatility. Ensure that you stay invested in index funds for at least a decade.

What is the Rule of 72 S&P 500? ›

To use the Rule of 72, divide the number 72 by an investment's expected annual return. The result is the number of years it will take, roughly, to double your money.

According to the Rule of 72, investments will double in seven years if they have a return rate of at least 10.28%. Since mutual funds often have an average return greater than 10.28% for five-year funds, they are very likely to double in seven years or less.

Investors, however, must consider the index fund that they select since not every one is low-cost, not some may be better at tracking an index than others. Moreover, owning an index does not mean you are immune from risk or losses if the markets take a downturn.

Some index funds provide exposure to thousands of securities in a single fund, which helps lower your overall risk through broad diversification. By investing in several index funds tracking different indexes you can built a portfolio that matches your desired asset allocation.

Is Investing in the S&P 500 Less Risky Than Buying a Single Stock? Generally, yes. The S&P 500 is considered well-diversified by sector, which means it includes stocks in all major areas, including technology and consumer discretionary—meaning declines in some sectors may be offset by gains in other sectors.

Which stock will perform better in 2023? ›

High-quality bonds and fixed-indexed annuities are often considered the safest investments with the highest returns. However, there are many different types of bond funds and annuities, each with risks and rewards. For example, government bonds are generally more stable than corporate bonds based on past performance.

2023 is a great time to start investing. But so was 2022. The key point is that over the long term, investments generally do grow in value, even if there is some early volatility. It is far better to invest now, whenever now happens to be, rather than waiting for some ideal future opportunity.

For the rest of 2023, investors should consider some safe stock winners like Walmart (NYSE:WMT), Home Depot (NYSE:HD) and O'Reilly Automotive (NASDAQ:ORLY). Today, these stocks still have substantial competitive advantages and unique business characteristics likely to support outperformance in this cycle.

What stock should I buy May 2023? ›

By sector, communication services and real estate are the most undervalued sectors today, trading 30% and 22% below our fair values, respectively. Consumer defensive stocks, meanwhile, are about fairly valued.

India Emerges As Fastest-Growing Economy Among Top 5

These widely varying figures are the real or inflation-adjusted gross domestic product (GDP) growth numbers of the world's top five economies during January–March 2023. The USA, the world's largest economy, grew 1.1 percent.

(NYSE:WMT) are often considered to be money-makers in times of recession. According to McKinsey report published in 2009, recession-resistant industries include consumer staples, healthcare, telecommunication services, and utilities, among more.