If You'd Thrown $1,000 at the SPDR S&P 500 ETF 33 Years Ago, Here's the Jaw-Dropping Amount You'd Have Now
Key Points
The S&P 500 has been one of the simplest and best options for long-term buy-and-hold investing.
Since its inception in 1993, the SPDR S&P 500 ETF (SPY) has returned more than 2,700%.
The fund is currently one of the largest ETFs in the marketplace with more than $700 billion in assets.
- 10 stocks we like better than SPDR S&P 500 ETF Trust ›
The SPDR S&P 500 ETF (NYSEMKT: SPY) is the original exchange-traded fund (ETF). Launched in January 1993, it's still one of the five biggest ETFs in existence with more than $718 billion in assets under management (AUM) as of Dec. 30, 2025.
What makes up the S&P 500 index has changed radically over time. Back in the early 1990s, the largest allocations belonged to energy, industrials, and consumer stocks. At the time, tech only accounted for about 5% of the index.
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Tech blew up to roughly a 35% allocation right before the tech bubble burst. Financials became the largest sector at around 22% just before the financial crisis cut that number down to the single digits. Today, of course, tech dominates again by accounting for about 34% of the index.
Over the course of its 33-year life, it's also done a terrific job of delivering strong returns for shareholders. Since inception, the fund has produced an average annual return of 10.7%. If you do the math, its cumulative lifetime return roughly comes out to a staggering 2,740%!
That means a single $1,000 investment made when the SPDR S&P 500 ETF launched would today be worth about $28,400!
This is a testament to the power of long-term buy-and-hold investing. Even with the tech bubble, the financial crisis, the COVID bear market, and every correction in between, the S&P 500 has been one of the best long-term investment options available.
Should you buy stock in SPDR S&P 500 ETF Trust right now?
Before you buy stock in SPDR S&P 500 ETF Trust, consider this:
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*Stock Advisor returns as of January 5, 2026.
David Dierking has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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