Major US Stock Indexes Deliver Strong Returns Over Past 20 Years, Nasdaq Leads the Way
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The S&P 500 returned 345% over the past 20 years, compounding at 7.7% annually. With dividends reinvested, it returned 546%, compounding at 9.8% annually.
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The Dow Jones Industrial Average returned 268% over the past 20 years, compounding at 6.7% annually. It has been less volatile than the S&P 500.
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The Nasdaq Composite returned 687% over the past 20 years, compounding at 10.9% annually. It has outperformed but been more volatile than the S&P 500 and Dow.
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The S&P 500 and Dow are seen as benchmarks for the overall U.S. stock market, while the Nasdaq tracks tech stocks.
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Index funds like those tracking the S&P 500, Dow, and Nasdaq provide low-cost exposure to these major indexes with returns competitive to most active investing.