The S&P 500 generated an impressive 26.29% total return in 2023, rebounding from an 18.11% setback in 2022. Heading into 2024, investors are looking for ways to maximize their returns. One way to do this is by investing in the S&P 500, a leading barometer for judging the performance of the U.S. stock market. Funds that track this benchmark index have historically provided solid returns for investors.
You don't need to invest in risky stocks to make a lot of money. In fact, billionaire Warren Buffett continually recommends investing in the S&P 500 for its long-term growth potential. If you had invested $1000 in the S&P 500 in the past, you would have seen substantial gains over time.
Since 1971, the S&P 500 has delivered an annualized return of 7.58%, or 10.51% with dividends reinvested. This demonstrates the consistent growth potential of investing in this index. If you are considering investing in the S&P 500, you can use our calculator to find out what you should expect if you invest $10,000 in the S&P 500 exchange-traded fund and wait 20 years.