The S&P 500’s long-term track record makes it the default starting point for ordinary investors who want exposure to America’s largest companies without picking individual stocks. A $1,000 investment two decades ago would be worth considerably more today, and you don’t need to be a Wall Street insider to get started.

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Current Price: 7,165.08 USD · Symbol: ^GSPC · Day Change: +56.68 (+0.80%) · 52-Week High: 7,168.59 · Tracks Companies: 500 leading U.S. firms

Quick snapshot

1Confirmed facts
2What’s unclear
  • Exact future returns over the next decade
  • Timing of the next major correction
  • How current interest rate environment affects long-term multiples
3Timeline signal
  • 27 bear markets since 1928 (Hartford Funds)
  • 28 bull markets over the same period (Hartford Funds)
  • Bull markets last an average of 4.9 years (Stifel)
4What’s next
  • Continued index fund adoption by retail investors
  • Ongoing interest in passive income strategies
  • Growing question: is now a good time to buy?

What if I invested $1000 in S&P 500 20 years ago?

Growth calculation

  • The S&P 500 has returned an average of 10.364% annually over the last 20 years, assuming dividends are reinvested (Trade That Swing)
  • That $1,000 investment would have grown to approximately $7,500–$8,500 depending on exact entry timing
  • Adjusted for inflation, the real purchasing power gain is still substantial at 7.634% annual return (Trade That Swing)

Total return including dividends

  • Dividend reinvestment significantly boosts total returns over long periods
  • The difference between price return and total return can be 2–3 percentage points annually
  • Over 20 years, reinvested dividends account for roughly 30–40% of total gains
Bottom line: A $1,000 investment in an S&P 500 index fund 20 years ago would likely be worth $7,500–$8,500 today, thanks to the index’s roughly 10% average annual return and the compounding power of reinvested dividends.

How to invest in S&P 500 for beginners?

Choose index funds or ETFs

  • Index funds and ETFs that track the S&P 500 include Vanguard’s VOO, SPDR’s SPY, and iShares’ IVV
  • These funds have expense ratios as low as 0.03%–0.09%, meaning you keep nearly all your returns
  • All three major fund families offer S&P 500 index options through most brokerage platforms

Open brokerage account

  • Major brokers include Fidelity, Charles Schwab, and Vanguard (each offers commission-free S&P 500 index funds)
  • Fidelity and Schwab both offer accounts with no minimum deposits for stock trading
  • Mobile apps from these brokers make setting up automatic investments straightforward

Set up automatic investments

  • Consistent monthly contributions dollar-cost average your position over time
  • Automatic investing removes emotion from the equation and builds discipline
  • Even small amounts like $50–$100 per month compound significantly over decades
The upshot

Opening an account at a major broker and buying a single S&P 500 ETF takes about 15 minutes. The hardest part is deciding to start.

Is the S&P 500 still a good buy?

Current market conditions

  • The S&P 500 traded near 7,165.08 recently, close to its 52-week high of 7,168.59
  • VIX volatility readings above 20 signal elevated market risk and potential corrections (Intellectia)
  • The index returned 25.02% in 2024 and 26.29% in 2023 (Slickcharts)

Long-term historical performance

  • Over 150 years, the S&P 500 averaged 9.434% annual returns including dividends (Trade That Swing)
  • Despite crashes like 2008 (59% loss) and 2022 (-18.11%), long-term investors have recovered every major drawdown
  • Average stock market return is 10% annually in the U.S., though actual returns vary year to year (SoFi)
Why this matters

Every major market decline in history has eventually been followed by new highs. Investors who sold during downturns locked in losses; those who held recovered.

Can I invest $100 in the S&P 500?

Fractional shares options

  • Most major brokerages now offer fractional shares, allowing you to buy a portion of a share
  • With the S&P 500 near 7,165, a $100 investment gets you roughly 1/70th of the full index
  • Apps like Fidelity, Schwab, and Robinhood support fractional S&P 500 ETF purchases

Minimum investment requirements

  • ETFs like SPY and VOO have no minimum investment beyond the share price
  • Index mutual funds through Vanguard and Fidelity sometimes require $1,000–$3,000 minimums, though fractional share trading bypasses this
  • The barrier to entry is essentially whatever your broker charges for a trade (often $0 at major platforms)
The catch

Fractional shares work, but you’ll want to check whether your broker allows reinvesting dividends into fractional shares—this maximizes the compounding effect for small investors.

Can I become a millionaire by investing in the S&P 500?

Time and contribution calculator

  • At a 10% average annual return, investing $500/month reaches $1 million in approximately 27 years
  • Increase monthly contributions to $1,000 and the timeline shrinks to about 20 years
  • The key variable is time in the market, not timing the market (Stifel)

Warren Buffett’s views on index investing

For the wide variety of individual investors—those with limited time, expertise, or interest in picking stocks—low-cost S&P 500 index funds represent the most sensible equity investment approach.

Warren Buffett, Berkshire Hathaway Annual Letter

The trade-off

The millionaire path through index investing requires patience and consistency. There’s no shortcut, but there’s also no complex strategy to master. The math works if you stick with it.

Upsides

  • Diversification across 500 large-cap U.S. stocks reduces single-company risk
  • Low expense ratios (0.03%–0.09%) preserve more of your returns over time
  • Historical 10%+ annual returns have outpaced inflation significantly
  • Simple, hands-off approach—no stock-picking research required
  • Automatic dividend reinvestment compounds gains automatically
  • Accessibility: start with as little as $50–$100 through fractional shares

Downsides

  • Volatility: the index dropped 35% on average during bear markets (Hartford Funds)
  • No exposure to small-cap stocks, international markets, or growth sectors
  • Missing the market’s best 30 trading days devastates returns (Stifel)
  • Near all-time highs, so near-term downside risk is elevated
  • Returns vary widely by decade; 2000–2009 was essentially flat
  • Emotional discipline required during major drawdowns

The historical return table below shows how the S&P 500 has performed across different time horizons, with inflation-adjusted figures revealing the real purchasing power growth for long-term investors.

Time Period Average Annual Return Inflation-Adjusted Return
150 years (as of Feb 2026) 9.434% 6.938%
100 years (as of May 2025) 10.463% —
50 years (as of May 2025) 11.621% 7.682%
30 years (as of May 2025) 10.313% 7.605%
20 years (as of May 2025) 10.364% 7.634%
10 years (as of May 2025) 12.566% 9.246%
5 years (as of May 2025) 16.43% 11.327%

Related reading: Price of Canadian Dollar

Additional sources

fbfs.com, pages.stern.nyu.edu, schwab.com, ofdollarsanddata.com, morningstar.com, blackrock.com For more information on investing in the S&P 500, check out our Guia d’inversió S&P 500.

Warren Buffett often recommends simple S&P 500 index funds, where S&P 500 returns and ETFs vividly shows returns from a $1000 investment over decades.

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Frequently asked questions

What is the S&P 500 stock symbol?

The primary ticker symbols for S&P 500 ETFs are ^GSPC (the index itself), SPY (SPDR S&P 500 ETF), VOO (Vanguard S&P 500 ETF), and IVV (iShares Core S&P 500 ETF). SPY is the most actively traded.

How much has the S&P 500 returned historically?

The S&P 500 has returned approximately 10% annually over the long run, though this varies by period. Over the last 30 years (1994–2024), the average return is 9%, or 6.3% adjusted for inflation. Recent decades have been particularly strong: the 10-year average (2014–2024) is 11.3%, and the 5-year average (2020–2025) reached 16.43% (Trade That Swing).

What are S&P 500 index funds?

Index funds are mutual funds or ETFs designed to replicate the performance of the S&P 500 by holding the same stocks in roughly the same proportions. They differ from actively managed funds because they don’t try to beat the market—they simply track it. Popular options include Vanguard VOO, SPDR SPY, and Fidelity’s index mutual funds.

Is Nasdaq better than S&P 500?

The Nasdaq Composite includes over 3,000 stocks, weighted heavily toward technology companies. The S&P 500 is more diversified across sectors but also includes many of the same large tech companies. Neither is objectively better—they serve different purposes. The Nasdaq tends to be more volatile due to its tech concentration.

Where to check S&P 500 chart?

Real-time S&P 500 charts are available through Yahoo Finance, MarketWatch, Bloomberg, and CNBC. Google Finance and TradingView also offer interactive charts with various timeframes and technical indicators.

What is the current S&P 500 price?

The S&P 500 recently traded around 7,165.08 USD, near its 52-week high of 7,168.59. The index symbol is ^GSPC for the price index and SPX for the total return index.

How does S&P 500 differ from Dow Jones?

The S&P 500 includes 500 companies weighted by market capitalization, representing approximately 80% of total U.S. market value. The Dow Jones Industrial Average contains only 30 companies, weighted by stock price rather than market cap. The S&P 500 is considered a better representation of the overall U.S. stock market.

The question isn’t whether the S&P 500 will recover from the next downturn—it always has. Patient investors who stayed invested through historical volatility have built meaningful wealth; those who sold during declines locked in losses that eroded their long-term returns.