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S&P 500 average return explained
The S&P 500 has historically delivered strong long-term returns, which is why many investors use it as a core part of their strategy.
What is the S&P 500?
The S&P 500 is a stock market index that tracks 500 of the largest companies in the United States.
Average return
Historically, the S&P 500 has returned around 8% to 10% annually over the long term.
Why this matters
These returns allow small, consistent investments to grow significantly over time through compounding.
Example
Investing £300 per month for 25 years at 8% could grow into a substantial portfolio.
Try it yourself
Use our investment growth calculator to see your own projections.