Here's the Average Stock Market Return Over the Last 10 Years Understanding stock market returns over the past decade is crucial for investors. This analysis details the average returns of three major U.S. stock market indexes – the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite – providing insights into potential investment strategies. These indexes offer diverse exposure to various sectors and company sizes, reflecting the breadth of the U.S. stock market. **S&P 500: A Broad Market Benchmark** The S&P 500 (^GSPC -0.01%) is arguably the most widely recognized stock market index. It represents 500 of the largest publicly traded companies in the United States, offering a broad representation of the overall market. The index is weighted by market capitalization, meaning larger companies have a greater influence on its performance. This reflects the significant investment activity and economic impact of these leading corporations. The S&P 500’s constituents include both value and growth stocks, spanning all 11 market sectors, providing a diversified portfolio. Approximately 80% of domestic equities and 50% of global equities by market value are represented, making it a comprehensive gauge of the U.S. and global markets. Its wide scope and diversity make it a preferred benchmark for gauging overall market performance. Investors can gain exposure through the Vanguard S&P 500 ETF (VOO 0.04%), a popular and low-cost option. The five largest positions in the index fund are listed below, reflecting the concentration of investment within the S&P 500: * Apple (AAPL)* Microsoft (MSFT)* Amazon (AMZN)* Alphabet (GOOGL)* Tesla (TSLA) **Key Performance:** The S&P 500 returned 235% over the last decade, which is an average of 12.8% annually. At that pace, $150 invested weekly in the Vanguard S&P 500 ETF would be worth $142,200 in 10 years.

**Dow Jones Industrial Average: A Blue Chip Indicator** The Dow Jones Industrial Average (^DJI 0.13%) comprises 30 significant U.S. companies. Unlike the S&P 500, the Dow is weighted by share price, meaning companies with higher stock prices exert a greater influence on the index’s movement. While not governed by strict inclusion criteria, the selection committee prioritizes companies with strong reputations, histories of sustained growth, and widespread investor interest. The Dow Jones Industrial Average is generally considered a barometer for blue-chip stocks – established, financially sound companies that represent the core of the U.S. economy. Accessing this index is typically done through the SPDR Dow Jones Industrial Average ETF Trust (DIA 0.17%). The five largest positions in the index fund are listed below: * UnitedHealth Group (UNH)* Visa (V)* Johnson & Johnson (JNJ)* Home Depot (HD)* Coca-Cola (KO) **Key Performance:** The Dow Jones Industrial Average returned 193% over the last 10 years, equivalent to 11.3% annually. At that pace, $150 invested weekly in the SPDR Dow Jones Industrial Average ETF Trust would be worth $132,300 in a decade.

**Nasdaq Composite: Growth Stock Exposure** The Nasdaq Composite (^IXIC -0.32%) represents over 3,000 companies, predominantly U.S.-based, but also including many technology and growth-oriented businesses listed on the Nasdaq Stock Exchange. The index is weighted by market capitalization, meaning larger companies have a more significant impact. The Nasdaq Composite is widely regarded as a benchmark for growth stocks, particularly those within the technology sector. Investors can gain exposure through the Fidelity Nasdaq Composite Index ETF (ONEQ -0.16%). The five largest positions in the index fund are listed below: * Apple (AAPL)* Microsoft (MSFT)* Alphabet (GOOGL)* Amazon (AMZN)* Nvidia (NVDA) **Key Performance:** The Nasdaq Composite advanced 314% during the last 10 years, for an average of 15.2% annually. At that pace, $150 invested weekly in the Fidelity Nasdaq Composite Index ETF would be worth $159,900 in a decade.