You often hear that the stock market has an average return of around 10%. That’s true – but the average return does NOT mean you’ll likely earn a 10% return in any given year. Here are some mind-blowing facts:

  1. From 1926-2020, the S&P 500 had an average return of about 10%, BUT annual returns came within two percentage points of the average (9-11%) in only 6 of the last 95 years.
  2. Yearly returns during this time ranged as high as 54% and as low as -43%.
  3. Since 1926, annual returns have been positive 70 times and negative 25 times.

Keeping this range of returns in perspective can help you stick to a long-term plan and ride out the inevitable ups and downs.

Data from “The Bumpy Road to the Market’s Long-Term Average,” Dimensional Fund Advisors.

Past performance is no guarantee of future results. Actual returns may be lower. Investing risks include loss of principal and fluctuating value. There is no guarantee an investment strategy will be successful.
Indices are not available for direct investment. Index returns are not representative of actual portfolios and do not reflect costs and fees associated with an actual investment.
In US dollars. S&P data © 2021 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

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