# S&P 500 Historical Returns

**Published:** 2026-07-01T23:28:32.407Z  
**Topic:** S P 500  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/c2655505-db3e-4e4c-80fe-023cc8ef217e

The S&P 500 has delivered an average annual return of 10.56%, but when adjusted for inflation, the real return is 6.69%, learn how to calculate historical

1. The S&P 500 has generated an average annual return of 10.56% since 1957, but when adjusted for inflation, the real return drops to 6.69% [1]. This historical performance provides crucial context for investors deciding how to utilize online broker platforms to prepare for their financial futures through investing.

| At a glance | |
|---|---|
| Average Annual Return | 10.56% |
| Inflation-Adjusted Return | 6.69% |
| Total Return with Dividends | 10.09% (since 1928) |
| Inflation-Adjusted Total Return | 6.81% (since 1928) |

## Historical Performance
The S&P 500's historical performance is a rich history of bull and bear markets, devastating crashes, remarkable recoveries, and significant shifts in the types of companies represented in the index [1]. A $100 investment in 1957 would have grown to over $98,000 by May 2026, but when adjusted for inflation, the investment would be worth about $8,400 in 2026 purchasing power [1]. The index's average annualized return from 1928 to the third quarter of the latest quarter was 10.09%, and when adjusted for inflation, the real average annualized return for the same period is 6.81% [1].

## What Drove the Move
The S&P 500's returns have been affected by various market conditions, including postwar boom, stagflation, internet boom and bust, financial crisis, and the pandemic [1]. The index has weathered recessions, inflation spikes, market bubbles, and global crises, and its long-term average annual return has been driven by a few major companies [1]. Investors cannot directly invest in the S&P 500, but they can add the SPY ETF or other S&P 500 index funds to their portfolio [1].

| Period | Average Annual Return |
| --- | --- |
| 1957-1969 | 10.51% |
| 1970-1981 | 5.62% |
| 1990-2002 | 10.34% |
| 2007-2009 | -4.38% |
| 2009-2020 | 13.56% |

## What to Watch
* The next S&P 500 index fund performance report
* The inflation-adjusted total return calculation for the latest quarter
* The average annual return of the S&P 500 for the current year

The S&P 500's historical performance provides valuable lessons about market behavior, risk management, and the power of compound interest [1]. As investors look to the future, they must consider the index's patterns of returns and the impact of inflation on their investments [1].

## Sources
1. Investopedia — [S&P 500 Average Returns and Historical Performance](https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp)
2. Ofdollarsanddata — [S&P 500 Historical Return Calculator [With Dividends] – Of Dollars And Data](https://ofdollarsanddata.com/sp500-calculator/)

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Cite as: TrendWatcher, "S&P 500 Historical Returns", https://www.trendwatcher.in/article/c2655505-db3e-4e4c-80fe-023cc8ef217e