What is the longest running S&P 500 ETF?
SPDR S&P 500 ETF (SPY)
The State Street SPDR S&P 500 ETF is not only the oldest U.S. listed exchange-traded fund, but it also typically has both the largest assets under management (AUM) and highest trading volume of all ETFs.
' And academic research tends to agree that the S&P 500 is a good investment in the long term, despite occasional drawdowns.
The average yearly return of the S&P 500 is 10.331% over the last 100 years, as of the end of February 2023. This assumes dividends are reinvested. Dividends account for about 40% of the total gain over this period. Adjusted for inflation, the 100-year average stock market return (including dividends) is 7.191%.
The S&P 500 is a great core holding, however, it lacks several dimensions of an optimally diversified portfolio i.e. the sector, geographic, currency and cap size. While 38% of S&P 500 earnings come from outside of the U.S., that is not the same as owning a portfolio that has 38% international stocks.
Triple-leveraged (3x) exchange-traded funds (ETFs) come with considerable risk and are not appropriate for long-term investing. Compounding can cause large losses for 3x ETFs during volatile markets, such as U.S. stocks in the first half of 2020.
| Symbol | Name | 5-Year Return |
|---|---|---|
| ROM | ProShares Ultra Technology | 23.90% |
| XSD | SPDR S&P Semiconductor ETF | 21.90% |
| SMH | VanEck Semiconductor ETF | 21.82% |
| TAN | Invesco Solar ETF | 21.76% |
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.
| Ticker | Fund | 10-Yr Return |
|---|---|---|
| TAN | Invesco Solar ETF | 21.31% |
| QCLN | First Trust Nasdaq Clean Edge Energy Fund | 20.98% |
| VGT | Vanguard Information Technology ETF | 18.27% |
| IAI | iShares U.S. Broker-Dealers & Securities Exchanges ETF | 18.21% |
Basic Info. S&P 500 10 Year Return is at 161.0%, compared to 161.9% last month and 195.6% last year. This is higher than the long term average of 112.5%.
What is the S&P 500 for 30 years?
Average Market Return for the Last 30 Years
Looking at the S&P 500 for the years 1992 to 2021, the average stock market return for the last 30 years is 9.89% (7.31% when adjusted for inflation).
Stock market returns since 1930
This is a return on investment of 574,555.93%, or 9.75% per year. This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 31,534.56% cumulatively, or 6.38% per year.
Ramsey suggested that if you do want to engage in passive investing, you're better off doing it with an index mutual fund than with an ETF that tracks a market or financial index. His reasoning: Mutual funds are meant to be invested in over the long term, while ETFs trade daily.
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.
Invest Across Asset Classes
Investing only in the S&P 500 limits your portfolio to stocks, which can be a risky decision during major market crashes. Holding bonds, cash, real estate, and other assets can help to limit your risk during these periods.
Because they rebalance daily, leveraged ETFs usually never lose all of their value. They can, however, fall toward zero over time. If a leveraged ETF approaches zero, its manager typically liquidates its assets and pays out all remaining holders in cash.
Holding period:
If you hold ETF shares for one year or less, then gain is short-term capital gain. If you hold ETF shares for more than one year, then gain is long-term capital gain.
Bottom Line. Leveraged ETFs decay due to the compounding effect of daily returns, volatility of the market and the cost of leverage. The volatility drag of leveraged ETFs means that losses in the ETF can be magnified over time and they are not suitable for long-term investments.
S&P 500 could hit 5000 by December 2022: Advisor.
In the 50 years that the S&P 500 has been published daily, the greatest one-day increase was two days later, when the index rose from 236.83 to 258.38, or a 9.1% increase for that one day. The largest percentage increase in the DJIA average was on October 6, 1931, when the index increased 12.86 to close at 99.34.
Will the S&P 500 ever hit $5,000?
All it would take to push the S&P over 5,000 is a 22% return, which may seem like a lot given current market sentiment, but is not outside of the realm of possibility in the next few years. In fact, it could be as soon as next year.
One of those exchange-traded funds, believe it or not, is the most famous ETF of all, the SPDR S&P 500 ETF Trust (SPY). Launched on Jan. 22, 1993, SPY has risen 828.3% since its inception. The other is a close cousin, the SPDR S&P Midcap 400 ETF Trust (MDY), with a 1,131% gain since its launch in 1995.
| Index ETFs | Gold ETFs | Bond ETFs |
|---|---|---|
| Motilal Oswal NASDAQ 100 ETF | IDBI Gold ETF | Nippon ETF Long Term Gilt |
| HDFC Sensex ETF | Invesco India Gold ETF | SBI-ETF 10Y Gilt |
| SBI ETF Sensex | Aditya Birla Sun Life Gold ETF | LIC MF Government |
| Edelweiss ETF - NQ30 | SBI ETF Gold | Nippon ETF Liquid BeEs |
1. Best Technology Sector ETF – iShares PHLX Semiconductor ETF (SOXX)
If you have 30 years and $100,000, then there's a good chance that the S&P 500 can make you a millionaire retiree. It gets a bit tougher if you have a shorter time frame. You'd have to start with $250,000 to reach $1 million within 20 years. That number swells to $475,000 if you only have a decade until retirement.
| S&P 500 Annual Return | -19.44% |
|---|---|
| S&P 500 Monthly Return | 1.46% |
| S&P 500 Monthly Total Return | 1.56% |
1. Vanguard S&P 500 ETF (VOO -0.14%)
| ETF | Year-to-date performance (to May 1) |
|---|---|
| ProShares Bitcoin Strategy ETF (BITO) | 58.7% |
| SPDR EURO STOXX 50 ETF (FEZ) | 17.7% |
| Vanguard Mega Cap Growth ETF (MGK) | 19.7% |
| Communication Services Select Sector SPDR Fund (XLC) | 22.3% |
| Ticker | Fund | Inflows (%) |
|---|---|---|
| QTJA | Innovator Growth Accelerated Plus ETF - January | 540% |
| FSIG | First Trust Limited Duration Investment Grade Corporate ETF | 488% |
| NVDL | GraniteShares 1.5x Long NVDA Daily ETF | 472% |
| COWG | Pacer US Large Cap Cash Cows Growth Leaders ETF | 415% |
The worst 10 year annual return was a loss of almost 5% per year ending in the summer of 1939. That was bad enough for a 10 year total return of -40%.
What is the average investor return compared to the S&P 500?
The average return of the stock market over the long term is just above 10%, as measured by the S&P 500 index. Over the past decade, through to March 31, 2022, the annualized performance of the S&P 500 was 14.5%.
Basic Info. S&P 500 2 Year Return is at 3.43%, compared to 4.17% last month and 75.29% last year.
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.
The stock market has returned an average of 10% per year over the past 50 years. The past decade has been great for stocks. From 2012 through 2021, the average stock market return was 14.8% annually for the S&P 500 index (SNPINDEX:^GSPC).
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S&P 500 10 Years Forecast (Until 2032)
Basic Info. S&P 500 Annual Return is at -19.44%, compared to 26.89% last year. This is lower than the long term average of 7.28%. The S&P 500 Annual Return is the investment return received each year, excluding dividends, when holding the S&P 500 index.
Basic Info. S&P 500 3 Year Return is at 43.16%, compared to 58.99% last month and 40.26% last year.
Buffett has long endorsed the S&P 500 ETF, often recommending it to investors. In 2008, he also famously bet that a Vanguard S&P 500 index fund could beat five actively managed hedge funds.
Some exchange-traded funds, or ETFs, can provide a potential income stream that may offer more diversification than investing in just one stock. Whether you're reorganizing your portfolio for your golden years or just starting to research income-oriented funds, you might want to consider this investment type.
Dave divides his mutual fund investments equally between four types of funds: Growth and income, growth, aggressive growth, and international. This lowers your investment risk because now you're invested in hundreds of different companies all over the world in a whole bunch of different industries.
Should I just put my money in S&P 500?
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.
You only need one S&P 500 ETF
All three of the ETFs listed here have lower-than-average expense ratios and offer an easy way to buy a slice of the U.S. stock market. You could be tempted to buy all three ETFs, but just one will do the trick.
History shows us that investing in an S&P 500 index fund -- a fund that tracks the S&P 500's performance as closely as possible -- is remarkably safe, regardless of timing. The S&P 500 has never produced a loss over a 20-year holding period.
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.
Commonly called the S&P 500, it's one of the most popular benchmarks of the overall U.S. stock market performance. Everybody tries to beat it, but few succeed.
December 29, 2021: The S&P 500 index closed at a record high of 4793.06. As of April 19th, 2023 this record all time high still stands.
Today, it's known as the SPDR S&P 500 ETF Trust , or just “SPDR” (pronounced “Spider”). It is the largest ETF in the world with over $370 billion in assets under management, and is also the most actively traded, routinely trading over 80 million shares daily with a dollar volume north of $32 billion every day.
Bogle introduced the Vanguard 500 fund, which tracks the returns of the S&P 500 and marked the first index fund marketed to retail investors.
| Symbol Symbol | ETF Name ETF Name | % In Top 10 % In Top 10 |
|---|---|---|
| SPY | SPDR S&P 500 ETF Trust | 28.94% |
| IVV | iShares Core S&P 500 ETF | 29.11% |
| VOO | Vanguard S&P 500 ETF | 23.78% |
| VTI | Vanguard Total Stock Market ETF | 23.68% |
| Symbol Symbol | ETF Name ETF Name | ESG Score Global Percentile (%) ESG Score Global Percentile (%) |
|---|---|---|
| ERTH | Invesco MSCI Sustainable Future ETF | 75.76% |
| WNDY | Global X Wind Energy ETF | 77.52% |
| FRNW | Fidelity Clean Energy ETF | 83.42% |
| KGRN | KraneShares MSCI China Clean Technology Index ETF | 42.20% |
What is the oldest balanced ETF?
Founded in 1929, Wellington™ Fund is Vanguard's oldest mutual fund and the nation's oldest balanced fund.
Market risk
The single biggest risk in ETFs is market risk.
| Symbol Symbol | ETF Name ETF Name | % In Top 10 % In Top 10 |
|---|---|---|
| XLK | Technology Select Sector SPDR Fund | 70.83% |
| IVW | iShares S&P 500 Growth ETF | 44.21% |
| SCHG | Schwab U.S. Large-Cap Growth ETF | 54.13% |
| SPYG | SPDR Portfolio S&P 500 Growth ETF | 44.01% |
| ETF | Ticker | 5-year return |
|---|---|---|
| Vanguard S&P 500 ETF | VOO | 56.21% |
| SPDR S&P 500 ETF Trust | SPY | 56.20% |
| iShares Core S&P 500 ETF | IVV | 55.84% |
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.
