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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.