S&P 500 returns historically average about 10.26% annually with dividends reinvested, yet the max drawdown in 2022 hit 25.4% from the peak. This article ties participation, returns, and risk across equities, fixed income, alternatives, and global markets using the statistics investors actually track. It also highlights where behavioral finance and selection biases can distort results, including the 68% of individual investors who underperform the market each year.
Key Takeaways
- Global REIT index returned 9.2% annually from 2000-2023.
- 68% of individual investors underperform the market annually.
- The S&P 500 Index has historically returned an average of 10.26% annually from 1928 to 2023, including dividends reinvested.
- U.S. 10-year Treasury yield averaged 4.25% from 1962 to 2023.
- China A-shares P/E averaged 15x vs. global 18x 2010-2023.
- 60/40 portfolio (stocks/bonds) returned 8.5% annually 1926-2023.
Key statistics show strong growth and steady performance, offering investors confidence in future returns.
Related reading
01 · Category
Alternatives22 stats
01
Global REIT index returned 9.2% annually from 2000-2023.
02
U.S. commercial real estate cap rates average 6.5% for offices in 2023.
03
Gold price increased 7.8% annually from 1971-2023 post-gold standard.
04
Bitcoin annualized return since 2010 is over 200%, but with 80% volatility.
05
Hedge funds averaged 7.1% net returns from 1990-2023.
06
Private equity buyouts returned 15.2% annually 1986-2022.
07
Commodities (GSCI) returned 5.4% annually 1970-2023.
08
U.S. farmland values rose 5.1% annually 1992-2023.
09
Timberland investments returned 8.9% annually long-term.
10
Art market (Mei Moses) returned 6.5% annually 1986-2023.
11
Venture capital median IRR is 2.4x multiples since inception.
12
Infrastructure funds returned 10.5% annually 2000-2023.
13
Silver price volatility is 25% annualized vs. gold's 15%.
14
REIT dividend yields average 4.2% for equity REITs.
15
Oil futures contango costs average 5% annually.
16
Collectibles like wine returned 8.2% annually via Liv-ex index.
17
Cryptocurrency market cap reached $2.5 trillion peak in 2021.
18
Peer-to-peer lending defaults average 4-6% on platforms.
19
Carbon credits traded $851 billion in 2022.
20
Shipping container investments yield 8-10% leases.
21
Whiskey cask investments returned 12% annually historically.
22
Royalty trusts in energy yield 7-9% dividends.
Interpretation
Alternatives Interpretation
In the Alternatives space, the standout message is that returns vary wildly by asset, from steady double digit outcomes like private equity buyouts at 15.2% annually and a 9.2% REIT track record to much higher but far more turbulent bets like Bitcoin with an annualized return over 200% alongside 80% volatility.
02 · Category
Behavioral Finance24 stats
01
68% of individual investors underperform the market annually.
02
Average investor return is 5.5% vs. S&P 10.7% over 30 years.
03
Loss aversion causes investors to sell winners too early 20% more often.
04
Herding behavior amplified 1987 crash by 30%.
05
Overconfidence leads to 1.5% annual underperformance.
06
40% of investors chase past performance.
07
Disposition effect: hold losers 2x longer than winners.
08
Recency bias causes 15% allocation shift post-bull markets.
09
Anchoring to purchase price affects 25% of sell decisions.
10
Confirmation bias in 78% of retail trader news consumption.
11
Endowment effect values owned stocks 20-30% higher.
12
Mental accounting separates gains/losses into buckets 60% of time.
13
Status quo bias retains underperforming funds 45% longer.
14
Hindsight bias post-event: 80% claim they predicted it.
15
Availability bias favors recent events, skewing risk perception by 25%.
16
Social proof: 55% mimic top holdings of famous investors.
17
Regret aversion delays rebalancing by 3 months on average.
18
Framing effect: gains framed as % beat $ amounts 70% preference.
19
Hyperbolic discounting favors now over future at 2:1 ratio.
20
Illusion of control in active trading boosts volume 50%.
21
Gambler's fallacy after streaks affects 35% of trades.
22
Self-attribution bias claims skill after wins 65% of time.
23
House money effect risks more after gains 40%.
24
Diversification insufficiency: naive 1/N rule used by 80% retail.
Interpretation
Behavioral Finance Interpretation
Behavioral finance shows up clearly in the numbers, since 68% of individual investors underperform the market each year and average returns lag far behind the S&P 500 at 5.5% versus 10.7% over 30 years, suggesting that biases like loss aversion, herding, and overconfidence systematically erode performance.
03 · Category
Equities30 stats
01
The S&P 500 Index has historically returned an average of 10.26% annually from 1928 to 2023, including dividends reinvested.
02
From 1957 to 2023, the S&P 500's compound annual growth rate (CAGR) was 10.67% with dividends.
03
Over the past 20 years ending 2023, the S&P 500 annualized return was 9.7%, outperforming inflation by 6.8%.
04
The NASDAQ Composite Index averaged 11.8% annual returns from 1971 to 2023.
05
Dividend yield on the S&P 500 averaged 4.1% during the 1970s decade.
06
In 2022, the S&P 500 experienced a maximum drawdown of 25.4% from its peak.
07
Small-cap stocks (Russell 2000) returned 11.9% annually from 1979 to 2023.
08
Value stocks outperformed growth stocks by 4.5% annually from 1927 to 2023.
09
The Dow Jones Industrial Average has compounded at 7.5% annually since 1896.
10
Tech sector in S&P 500 grew from 8% to 29% of index weight from 2000 to 2023.
11
S&P 500 forward P/E ratio averaged 16.8x from 1871 to 2023.
12
Earnings growth for S&P 500 companies averaged 6.7% annually over the last 10 years to 2023.
13
70% of S&P 500 daily moves are less than 1% since 1950.
14
Beta of S&P 500 to itself is 1.0, with average stock beta at 1.1.
15
Sharpe ratio for S&P 500 buy-and-hold from 1926-2023 is 0.42.
16
Number of S&P 500 companies increased from 500 in 1957 to over 500 today with reconstitutions.
17
Average annual volatility (standard deviation) of S&P 500 returns is 15.2% from 1928-2023.
18
S&P 500 has positive returns in 73% of calendar years since 1928.
19
Best single-year S&P 500 return was 53.99% in 1933.
20
Worst single-year S&P 500 return was -43.84% in 1931.
21
S&P 500 median annual return from 1928-2023 is 11.9%.
22
Turnover rate in S&P 500 is about 4-5% annually due to reconstitutions.
23
Magnificent 7 stocks accounted for 28% of S&P 500 market cap in 2023.
24
Average market cap of S&P 500 constituents is $85 billion as of 2023.
25
S&P 500 price-to-book ratio averaged 2.9x from 1976-2023.
26
Institutional ownership in S&P 500 stocks averages 80%.
27
Average dividend payout ratio for S&P 500 is 38% over the last decade.
28
S&P 500 Dividend Aristocrats have outperformed the broader index by 2% annually since 2005.
29
Number of IPOs on NYSE/Nasdaq averaged 150 per year from 2010-2019.
30
Average first-day IPO pop was 18% in 2021.
Interpretation
Equities Interpretation
For equities, the S&P 500’s long-run power is clear with about 10.26% average annual returns from 1928 to 2023 including dividends, and even over the past 20 years it delivered 9.7% annually while beating inflation by 6.8%, though 2022 still showed the downside with a 25.4% maximum drawdown.
More related reading
04 · Category
Fixed Income25 stats
01
U.S. 10-year Treasury yield averaged 4.25% from 1962 to 2023.
02
Investment-grade corporate bonds returned 5.2% annually from 1973-2023.
03
High-yield junk bonds averaged 8.1% annual returns from 1983-2023.
04
Duration of Bloomberg U.S. Aggregate Bond Index is 6.2 years as of 2023.
05
Yield to maturity on AAA municipals averaged 3.5% over 20 years to 2023.
06
In 2022, long-term Treasuries lost 31% amid rising rates.
07
Credit spreads for BBB corporates averaged 150 bps over Treasuries since 2000.
08
TIPS inflation-protected securities returned 4.1% annually since 1997.
09
Average coupon on outstanding U.S. Treasuries is 2.5% as of 2023.
10
Emerging market sovereign debt yields averaged 6.8% from 2000-2023.
11
Mortgage-backed securities (MBS) prepayment rate averages 10% annually.
12
30-year fixed mortgage rates peaked at 18.63% in 1981.
13
Bond market size exceeded $130 trillion globally in 2023.
14
U.S. corporate bond issuance hit $2 trillion in 2021.
15
Default rate on high-yield bonds averaged 3.1% annually since 1981.
16
Sharpe ratio for U.S. Aggregate Bonds 1976-2023 is 0.52.
17
62% of bond returns are from yield, 38% from price changes historically.
18
Callable bond premium averages 20-50 bps over non-callable.
19
Inflation erodes bond purchasing power by 2.5% annually on average.
20
Zero-coupon Treasury STRIPS yield curve slope is 1.2% (10y-2y) in 2023.
21
Agency debt spreads over Treasuries average 10 bps.
22
U.S. municipal bond market size is $4 trillion outstanding.
23
Tax-equivalent yield for munis at 40% bracket and 3% yield is 5%.
24
Leveraged loans returned 5.9% annually since 1992.
25
S&P U.S. Preferred Stock Index yield averages 5.8%.
Interpretation
Fixed Income Interpretation
Fixed income has offered compelling long run returns, with investment grade bonds averaging 5.2% annually from 1973 to 2023 and junk bonds 8.1%, yet the 31% loss on long term Treasuries in 2022 shows that rising rates can quickly overpower those gains.
05 · Category
Global Markets22 stats
01
China A-shares P/E averaged 15x vs. global 18x 2010-2023.
02
MSCI Emerging Markets Index returned 7.9% annually 1988-2023.
03
Euro Stoxx 50 averaged 7.2% returns 1990-2023.
04
Nikkei 225 CAGR 5.1% since 1989 bubble peak to 2023.
05
Brazil Bovespa returned 10.4% annualized in USD 1994-2023.
06
India Nifty 50 grew 12.1% annually 2000-2023.
07
Currency risk: USD vs. EUR volatility 10% annually.
08
ADRs represent 20% of U.S. trading volume for foreign stocks.
09
Frontier markets volatility 25% vs. EM 18%.
10
Saudi Arabia Tadawul returned 8.5% since IPO reforms.
11
Global stock market cap $110 trillion in 2023, U.S. 60%.
12
Carry trade yen unwind caused 15% EM currency drop 2022.
13
MSCI ACWI ex-US returned 6.8% vs. US 10.2% 2000-2023.
14
Dividend yield in Europe averages 3.5% vs. US 1.6%.
15
Russia RTS index down 90% from peak due to sanctions.
16
Taiwan Weighted Index tech-heavy 70% weight.
17
Africa equity markets grew 8% annually 2010-2023.
18
GDR trading volume $50 billion annually.
19
Sovereign wealth funds AUM $11 trillion in 2023.
20
Foreign ownership in Japan stocks 30%.
21
LatAm bonds yield 7.5% average.
22
ASEAN markets correlation to US 0.6.
Interpretation
Global Markets Interpretation
Across global markets, long term returns have varied widely, with India’s Nifty 50 leading at 12.1% annually from 2000 to 2023 while China A shares traded at a comparatively lower 15x average P/E versus the global 18x from 2010 to 2023, underscoring how regional valuation and growth prospects have driven performance differences.
06 · Category
Portfolio Management22 stats
01
60/40 portfolio (stocks/bonds) returned 8.5% annually 1926-2023.
02
Diversification reduced portfolio volatility by 30% in 2008 crash.
03
Rebalancing annually adds 0.5-1% to returns long-term.
04
Target-date funds assets under management hit $3.5 trillion in 2023.
05
Monte Carlo simulations show 95% success rate for 4% withdrawal over 30 years.
06
Dollar-cost averaging outperforms lump sum in 68% of 10-year periods.
07
ETF assets grew from $1 trillion in 2010 to $10 trillion in 2023.
08
Smart beta strategies capture 80% of factor premia.
09
ESG funds inflows reached $350 billion in 2021.
10
Robo-advisors manage $1 trillion AUM as of 2023.
11
Factor timing success rate is below 50% for value/momentum.
12
Maximum drawdown in balanced portfolios averages 20-25% in crashes.
13
Tax-loss harvesting saves 1% annually in taxable accounts.
14
Glide path in target-date funds shifts from 90/10 to 50/50 equities.
15
Overlay strategies reduce transaction costs by 50%.
16
Core-satellite allocation: 70% passive, 30% active typically.
17
Risk parity portfolios equalize volatility contributions.
18
All-weather portfolio (Bridgewater) targets 10% volatility.
19
Tactical asset allocation beats strategic in 55% of periods.
20
Withdrawal rate sustainability: 3.5% for 40 years at 90% confidence.
21
85% of active funds underperform benchmarks over 10 years.
22
Home bias: U.S. investors allocate 70% to domestic equities.
Interpretation
Portfolio Management Interpretation
Portfolio management has proven its value as a durable system, with a classic 60/40 mix delivering 8.5% annually over 1926 to 2023 and diversification cutting volatility by 30% during the 2008 crash, while annual rebalancing adds about 0.5 to 1% to long term returns.
report visual · Key figures
Where returns have come from across asset classes
Long-run return averages vary widely by asset type—from equities to real assets—highlighting why asset allocation matters.
9.2%
Global REIT index returned 9.2% annually from 2000-2023.
7.1%
Hedge funds averaged 7.1% net returns from 1990-2023.
15.2%
Private equity buyouts returned 15.2% annually 1986-2022.
5.4%
Commodities (GSCI) returned 5.4% annually 1970-2023.
4.1%
TIPS inflation-protected securities returned 4.1% annually since 1997.
5.2%
Investment-grade corporate bonds returned 5.2% annually from 1973-2023.
Reference
Cite This Report
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APA
Leah Kessler. (2026, February 13). Investing Statistics. Gitnux. https://gitnux.org/investing-statistics
MLA
Leah Kessler. "Investing Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/investing-statistics.
Chicago
Leah Kessler. 2026. "Investing Statistics." Gitnux. https://gitnux.org/investing-statistics.
Sources & references
83 datasets cited across this report · attribution is report-level