zaro

What is the Average Return on the Stock Market Last 3 Years?

Published in Stock Market Returns 2 mins read

The average return on the stock market over the last three years, as primarily represented by the S&P 500 index, is 32.09%.

Understanding the S&P 500 3-Year Return

This figure specifically refers to the investment return an investor would have received for holding the S&P 500 index for a three-year period, excluding any dividends paid out during that time. The S&P 500 is widely regarded as a key benchmark for the overall performance of the U.S. stock market, as it includes 500 of the largest publicly traded companies in the United States.

Here's a comparison of recent S&P 500 3-year returns and long-term averages:

Metric Return (%)
S&P 500 3 Year Return (Current) 32.09
S&P 500 3 Year Return (Last Month) 23.89
S&P 500 3 Year Return (Last Year) 26.13
Long-Term Average 23.35

Contextualizing Market Performance

The current 3-year return of 32.09% demonstrates a period of strong growth, notably surpassing both its value from a month ago (23.89%) and a year ago (26.13%). Furthermore, this performance is higher than the long-term average return of 23.35%, indicating a particularly robust period for the market.

For investors, understanding such benchmarks can provide valuable context:

  • Snapshot of Market Health: A higher-than-average return indicates a strong period of market appreciation.
  • Portfolio Comparison: This benchmark allows investors to compare the performance of their own portfolios against a broad market indicator.

For more detailed insights into market indicators, you can explore resources such as YCharts.