SPDR Portfolio S&P 500 ETF dollar-cost averaging: 11.26% annualized return over 20 years
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The SPDR Portfolio S&P 500 ETF has delivered an annualized return of 11.26% over 20 years, according to a Yahoo Finance analysis. Monthly dollar-cost averaging into the 505-stock fund, which tracks the S&P 500, has been a profitable long-term strategy through downturns since 1928. The analysis comes even as investors weigh risks from the Iran conflict, higher energy costs, inflation and a possible AI stock bust.
S&P 500 Long-Term Record
The S&P 500 has delivered an average annual return of about 10% since 1928, Yahoo Finance reports. That period includes the Great Depression, World War II, the dot-com bubble, the global financial crisis, and the 2020 and 2022 downturns. Despite those disruptions, the index kept growing and has been profitable for long-term investors. The analysis notes that stock market history favors diversified buy-and-hold strategies.
SPDR Portfolio S&P 500 ETF
The State Street SPDR Portfolio S&P 500 ETF holds 505 stocks representing the 500 largest U.S. publicly traded companies and charges a 0.02% expense ratio. The fund has delivered average annual returns of 12.83% over five years, 15.07% over ten years, and 11.26% annualized since its November 2005 inception. Yahoo Finance notes these recent time frames have outperformed the S&P 500's long-term average. The ETF tracks the S&P 500 index.
Dollar-Cost Averaging Scenarios
Yahoo Finance examines investing $300 or $500 per month into the SPDR Portfolio S&P 500 ETF and holding for the long term. The strategy uses dollar-cost averaging to buy the same dollar amount of fund shares each month. The analysis assumes investors keep contributing regardless of market conditions. The article cites the fund's 20-year annualized return of 11.26% as the basis for the strategy.
What's Next
The next test for the strategy will be whether the AI stock boom continues or turns to a bust and whether inflation or interest rates rise further. It remains unclear whether the SPDR Portfolio S&P 500 ETF can sustain its 11.26% 20-year annualized return over the next two decades.
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SPDR Portfolio S&P 500 ETF dollar-cost averaging: 11.26% annualized return over 20 years
