Just 2% of large-cap core funds have beaten the S&P 500 since 1993 | TEBI (2024)

FAQs

What is the S&P 500 performance since 1993? ›

Stock market returns since 1993

This is a return on investment of 1,641.77%, or 9.85% per year. This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 727.57% cumulatively, or 7.19% per year.

As of August 31, 2022, the nine largest companies on the list of S&P 500 companies accounted for 27.8% of the market capitalization of the index and were, in order of highest to lowest weighting: Apple, Microsoft, Alphabet (including both class A & C shares), Amazon.com, Tesla, Berkshire Hathaway, UnitedHealth Group, ...

Yes, you may be able to beat the market, but with investment fees, taxes, and human emotion working against you, you're more likely to do so through luck than skill. If you can merely match the S&P 500, minus a small fee, you'll be doing better than most investors.

Think about this: If you invested $10,000 in the S&P 500 at the start of 1980 and left the money untouched until 2022, you'd have accumulated nearly $1.1 million by the end of last year, according to the Hartford Funds. The S&P 500 has an annualized total return of more than 12% over the last decade.

The term “Lost Decade for Stocks” refers to the ten-year period from 12/31/1999 through 12/31/2009, when the S&P 500^® generated an annualized total return of -0.9% over the period. This was only the second time that the market actually had a negative total return over a decade period.

Stock market returns since 1930

If you invested $100 in the S&P 500 at the beginning of 1930, you would have about $590,042.12 at the end of 2023, assuming you reinvested all dividends. This is a return on investment of 589,942.12%, or 9.74% per year.

Both the S&P 500^® and the Russell 1000^® indexes are large-cap, while the Russell 2000^® indexes are small-cap.

The Standard & Poor's 500 Index (S&P 500) and the Russell 1000 Index both track stocks of publicly traded companies and are both considered large-cap stock indices.

Another key difference is that while the S&P 500 consists of large-cap stocks, the Nasdaq Composite contains all qualified stocks listed on the Nasdaq exchange.

Just 2% of large-cap core funds have beaten the S&P 500 since 1993 | TEBI.

What percentage of funds outperform the S&P 500? ›

Data shows that only 1 out of 10 large-cap, midcap, and small-cap growth managers outperformed their respective benchmarks. Across nine U.S. style categories, large-cap value managers performed the best over the 10-year horizon, with 32% of managers outperforming the benchmark, the S&P 500 Value.

Since its inception in 1957, there have only been two occasions in which the S&P 500 fell for two (or more) consecutive years. The index posted back-to-back declines in 1973 and 1974, and it fell for three consecutive years between 2000 and 2002.

Over the years, that money can really add up: If you kept that money in a retirement account over 30 years and earned that average 6% return, for example, your $10,000 would grow to more than $57,000.

If you had invested $10,000 in the S&P 500 index in 1992 and held on with dividends reinvested, you'd now have more than $170,000.

As a result, $10,000 in AAPL stock purchased 20 years ago would be worth about $7.51 million today, assuming reinvested dividends.

And while theoretically possible, the entire US stock market going to zero would be incredibly unlikely. It would, in fact, take a catastrophic event involving the total dissolution of the US government and economic system for this to occur.

The lowest annual return over any 30 year period going back to 1926 was 7.8%. That's what you got had you invested at the peak of the Roaring 20s boom in September 1929.

If you invested $100 in the S&P 500 at the beginning of 2010, you would have about $487.75 at the end of 2023, assuming you reinvested all dividends. This is a return on investment of 387.75%, or 12.54% per year.

The index acts as a benchmark of the performance of the U.S. stock market overall, dating back to the 1920s. The index has returned a historic annualized average return of around 11.88% since its 1957 inception through the end of 2021.

Comparison to S&P 500 Index

To help put this inflation into perspective, if we had invested $8,000 in the S&P 500 index in 1980, our investment would be nominally worth approximately $912,320.82 in 2023.

What is the rolling 10 year average return S&P 500? ›

Basic Info. S&P 500 10 Year Return is at 156.3%, compared to 161.0% last month and 215.4% last year. This is higher than the long term average of 112.6%.

Vanguard's Large Cap Index is a little more diversified than the S&P 500, with 582 holdings. Not all S&P 500 companies are included in Vanguard's Large Cap Index, as some are too small to be included. Historically, Vanguard's Large Cap Index has outperformed the S&P 500.

January 3, 2022: The S&P 500 index closed at a record high of 4796.56. As of June 15th, 2023 this record all time high still stands.

Total stock market index funds are only slightly more diversified than S&P 500 index funds. Since both types of indexes are heavily weighted toward large-cap stocks, the performance of the two funds is highly correlated (similar).

Large-cap stocks usually belong to large, established companies and are safer investments than small- or mid-cap stocks. Since large-cap companies are so large, they are less likely to encounter situations that force them to completely cease operations.

The top 100 companies are categorised as large cap companies. Mutual funds that invest in the stocks of these large cap companies are categorised as large cap funds.

In general, Investors should diversify their investments across market caps. Investors with long investment horizons like 10 years and above and higher risk appetite can consider some allocation in small caps but for an investment horizon of 5-7 years, large-cap funds will be more suitable.

Small caps strongly outperformed through the R&R phase across every region we tested. And our findings chime with the broad body of academic research which finds small high quality companies significantly outperform their large cap equivalents over all variety of economic conditions and time periods.

Legendary investor Warren Buffet once said that all it takes to make money as an investor is to 'consistently buy an S&P 500 low-cost index fund. ' And academic research tends to agree that the S&P 500 is a good investment in the long term, despite occasional drawdowns.

Does Warren Buffett outperform the S&P 500? ›

Berkshire has a history of outperforming the S&P 500 during recessions, and performing especially well during bear markets, according to data from Bespoke Investment Group. Since 1980, Berkshire shares have beat the broader market over the course of six recessions by a median of 4.41 percentage points.

A prime reason is that the skewed pattern of market returns stacks the odds against investors. Typically, a few high-performing stocks pull the average up, while the majority of stocks under-perform. Thus, buying and owning a few individual stocks will usually lead to poor performance.

On average, the Fidelity Contrafund has beaten the S&P 500 Index by 2.41% per year. Growth of $10,000 invested in Contrafund versus S&P 500 Index, September 17, 1990 to March 31, 2023. Total value March 31, 2023 for Contrafund was $509,991, compared to $252,113 for the S&P 500 Index.

Over rolling monthly 10-year periods through 2022, the fund has frequently outpaced the S&P 500 and its peer average.

According to an analysis by advisory company Strategas Securities, 62% of active large-company “core” funds—those that buy a mix of growth and value stocks—beat the market.

The S&P 500 booted electric vehicle maker Tesla from its ESG Index as part of an annual update to the list. Meanwhile, Apple , Microsoft , Amazon and even oil and gas multinational Exxon Mobil were still included on the list.

A year of losses for the S&P 500

The top index of US stocks hit an all-time high in January 2022. It was downhill from there. The S&P 500 lost 19.4% over the past 12 months, notching its worst year since 2008.

That would translate into $5,000 of interest on one million dollars after a year of monthly compounding. The 10-year earnings would be $51,140.13. The rates on both traditional and high-interest savings accounts are variable, which means the rates can go up or down over time.

What will $1,000,000 be worth in 35 years? ›

In 35 years, a million-dollar portfolio, will result in in an annual income of around $60,000, Ardrey said, which in purchasing power terms, will be closer to $30,000 a year.

Answer and Explanation: The calculated present worth of $5,000 due in 20 years is $1,884.45.

S&P 500: $100 in 1990 → $2,455.08 in 2023

This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 955.08% cumulatively, or 7.31% per year. If you used dollar-cost averaging (monthly) instead of a lump-sum investment, you'd have $2,282.30.

The nominal return on investment of $100 is $25,499.51, or 25,499.51%. This means by 2023 you would have $25,599.51 in your pocket.

Since Apple stock trades at $126.36 today, that translates to a return of 126,360%. In other words, that $1,000 investment in 1980 would be worth more than $1.26 million today!

23, 1984). A $1,000 investment could have purchased 7,692.31 shares of AAPL at the time. The $1,000 investment in AAPL shares would be worth $1,162,615.73 today, based on a price of $151.01 for Apple stock at the time of writing.

Apple went public in December 1980 with its IPO priced at a pre-split price of $22 per share. A $10,000 invested in Apple back then would now be worth more than $1.6 million.

Stock market returns since 1926

If you invested $100 in the S&P 500 at the beginning of 1926, you would have about $1,205,148.19 at the end of 2023, assuming you reinvested all dividends. This is a return on investment of 1,205,048.19%, or 10.13% per year.

The index acts as a benchmark of the performance of the U.S. stock market overall, dating back to the 1920s. The index has returned a historic annualized average return of around 11.88% since its 1957 inception through the end of 2021.

Basic Info. S&P 500 10 Year Return is at 156.3%, compared to 161.0% last month and 215.4% last year. This is higher than the long term average of 112.6%.

What is the S&P 500 historical return per year? ›

S&P 500 Annual Total Return is at -18.11%, compared to 28.71% last year. This is lower than the long term average of 9.29%. The S&P 500 Annual Total Return is the investment return received each year, including dividends, when holding the S&P 500 index.

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%.

Stock market returns since 1965

This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 2,551.47% cumulatively, or 5.77% per year.

Sources: Bloomberg, NBER. On average, S&P 500 earnings decline 16.4% in recession. Notably in two of the last ten recessions, there was no decline in index earnings.

$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 average stock market return is about 10% per year, as measured by the S&P 500 index. In some years, the market returns more than that, and in other years, it returns less. The S&P 500 index comprises about 500 of America's largest publicly traded companies and is a benchmark for annual returns.

Here's a sample breakdown of stock market returns over time, assuming you invested $100 at the beginning of the time period listed: 40 Years (1982 – 2022): 11.6% annual return. 30 Years (1992 – 2022): 9.64% annual return. 20 Years (2002 – 2022): 8.14% annual return.

Basic Info. S&P 500 2 Year Return is at -0.58%, compared to -0.28% last month and 35.73% last year.

However in 2021, the average equity fund investor finished the year with a return of 18.39% versus an S&P 500 return of 28.71%; an investor return gap of 10.32%. This gap was the third largest annual gap since 1985, when the Quantitative Analysis of Investor Behavior (QAIB) analysis began.

Is S&P 500 adjusted for inflation? ›

Historical data is inflation-adjusted using the headline CPI and each data point represents the month-end closing value. The current month is updated on an hourly basis with today's latest value. The current price of the S&P 500 as of June 27, 2023 is 4,378.41.

Basic Info. S&P 500 Monthly Return is at 0.25%, compared to 1.46% last month and 0.01% last year. This is lower than the long term average of 0.50%. The S&P 500 Monthly Return is the investment return received each month, excluding dividends, when holding the S&P 500 index.