If You Invested $1,000 In The S&P 500 10 Years Ago, Here’s How Much You’d Have Now

The S&P 500 index has lengthy been some of the efficient wealth-building instruments for on a regular basis traders, compounding steadily over the previous decade. Whereas it hadn’t loved the jaw-dropping efficiency of a single breakout inventory like Nvidia (NVDA), the index has delivered regular progress — making it one of many easiest and most dependable methods to put money into the inventory market.

The index’s energy comes from its resilience and breadth — it represents about 80 % of the full U.S. inventory market’s worth, with 500 of the nation’s largest firms spanning each main business.

From September 2015 to September 2025, the S&P 500 greater than doubled in worth, weathering a pandemic, inflation spikes and rate of interest hikes alongside the best way. That sort of efficiency highlights why the S&P is usually thought of essentially the most dependable gauge of the U.S. financial system — and a core holding in numerous investor portfolios.

How a lot cash you’d have in the event you invested $1,000 within the S&P 500

So, what does a decade of regular compounding progress truly appear like for an investor?

When you can’t make investments straight within the S&P 500, you should purchase a fund that tracks the index. For the aim of this text, we used SPY — also called SPDR S&P 500 ETF Belief — the oldest and one of many largest exchange-traded funds in america.

Utilizing historic information from Morningstar, right here’s what a $1,000 funding in SPY could be price right now (based mostly on SPY’s closing stage on Sept. 11, 2025):

• 1 yr: A $1,000 funding in SPY one yr in the past has grown by about 10.44 % and could be price $1,104.40 right now.
• 5 years: A $1,000 funding in SPY 5 years in the past has grown by 58.37 % and could be price $1,583.70 right now.
• 10 years: A $1,000 funding in SPY 10 years in the past has grown by 267.69 % and could be price $3,676.90 right now.

That comes out to an annualized return of about 13.9 % over the previous decade — a bit above the index’s long-term common of roughly 10–11 %.

That acquire doesn’t even embrace dividends, which have added considerably to traders’ returns when reinvested over time.

Why staying invested issues

Whereas the S&P 500 could have averaged an almost 14 % annualized return during the last decade, you possibly can solely seize these sorts of returns in your personal portfolio by staying invested by means of the ups and downs.   

The S&P 500 has skilled sharp selloffs within the final 10 years. Throughout the Covid-19 pandemic, for instance, the S&P 500 tumbled from its Feb. 19, 2020, peak, dropping a 3rd of its worth and bottoming out at 66 % of that top by March 23. Buyers who panicked and pulled cash out locked in these losses. However those that stayed the course not solely recovered but in addition noticed the index rebound to new highs lower than one yr later. 

Historical past reveals lacking only a handful of the market’s greatest days can dramatically stunt your long-term returns. Practically eight in 10 of the S&P 500’s greatest days have occurred throughout bear markets or within the first two months of a rebound, in response to an evaluation by Hartford Funds, an asset administration firm. For those who had missed the ten greatest days over the previous 30 years, your returns would have been reduce in half.

That’s why long-term traders typically say time available in the market issues greater than timing the market.

How you can put money into the S&P 500

The best method for on a regular basis traders to get publicity to the index is thru index funds or exchange-traded funds (ETFs) that monitor the S&P 500. These low-cost funds pool collectively all 500 firms within the index, providing immediate diversification throughout a number of sectors. These advantages are why index funds prime Bankrate’s record of the very best investments.

A few of the hottest selections embrace the SPDR S&P 500 ETF Belief (SPY), the Vanguard 500 Index Fund (VOO) and the iShares Core S&P 500 ETF (IVV). Every of those affords low charges, broad diversification and the power to passively monitor the index’s efficiency while not having to analysis or handpick particular person shares.

That’s an enormous deal as a result of low prices matter in the long term. A seemingly small distinction in expense ratios — say, 0.03 % versus 1 % — can add as much as 1000’s of {dollars} in financial savings over a long time of compounding.

Why index funds work for long-term traders

Index funds aren’t designed to beat the market — they’re designed to be the market. And whereas which may not sound thrilling, historical past suggests it’s one of many smartest long-term methods out there to traders.

Choosing particular person shares will be rewarding in the event you’re fortunate sufficient to identify the subsequent Nvidia or Amazon (AMZN) early on, however few traders do. By proudly owning the entire index, you don’t must guess which firm will dominate the subsequent decade. You’ll mechanically personal the winners as they emerge — and the losers will fall away with out sinking your portfolio.

Lately, many monetary analysts have raised considerations that the S&P isn’t as broad and diversified because it seems. An enormous chunk of the S&P 500’s post-pandemic beneficial properties have come from simply seven firms: Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG), Amazon, Meta Platforms (META), Nvidia and Tesla (TSLA). Collectively, they now make up no less than a 3rd of the index’s worth, with returns leaning closely on a handful of tech giants.

Nonetheless, focus isn’t new for the S&P 500. Leaders shift over time — from railroads to grease to tech — and the index adapts. At this time’s tech dominance displays the place progress is going on, and proudly owning the S&P ensures you’ll seize the efficiency of the subsequent leaders, no matter sector they arrive from.

That stability has helped the S&P 500 generate wealth for tens of millions of Individuals. And it’s why investing legend Warren Buffett has repeatedly suggested the typical investor to easily purchase an S&P 500 index fund and maintain it for the long run.

Backside line

For those who had invested $1,000 within the S&P 500 10 years in the past, you’d have almost $3,677 right now. That’s not a flashy in a single day win, nevertheless it’s the sort of regular progress that builds actual wealth over time. An S&P 500 index fund is the best and most cost-effective strategy to share within the progress. 

Editorial Disclaimer: All traders are suggested to conduct their very own unbiased analysis into funding methods earlier than investing determination. As well as, traders are suggested that previous funding product efficiency is not any assure of future value appreciation.