Key insights
- The article suggests that despite short-term market fluctuations, long-term investment in S&P 500 index funds like SPY can yield significant returns. Assuming a historical average of 10% annual return, a $25,000 investment could grow to over $436,000 in 30 years. The piece advocates for a diversified, low-fee approach to build wealth for retirement, but it does not offer any predictive insight into near-term market movements.
The stock market isn't doing all that well in 2026 as the S&P 500 is down 4% year to date. Investors are turning to safer investment options amid all the uncertainty in the world today. You might be tempted to do the same.
Historically, however, investing in the broad index has been a good move for investors, and it's paid off handsomely. Regardless of where you think the market will go in the short term, odds are that it'll go up in the long run. That's why, as long as you're a long-term investor who's willing to remain invested for years and even decades, it can still be a great idea to track the S&P 500.
Here's how much your portfolio might be worth in 30 years, if you were to invest $25,000 in S&P 500 index funds today.
The S&P 500 has historically averaged an annual return of 10%. If it were to continue at that pace, that means you could expect an investment in a fund tracking the index to double roughly every seven years. And the longer you hold, the larger your investment will likely grow.
The table below shows you what a $25,000 investment in an S&P 500 index fund might grow to be over the long term, assuming the index continues to average a 10% return.
After a period of 30 years, your investment would be worth over $436,000. While it won't make you a millionaire, it can certainly help you build up a big nest egg for retirement. And best of all, it comes with minimal long-term risk.
The S&P 500 is a collection of the leading stocks in the world. And you can track it easily using exchange-traded funds (ETFs), such as the SPDR S&P 500 ETF Trust (SPY 0.34%). The fund will give you exposure to the S&P 500, and it has a low expense ratio of just 0.09%. In order to ensure your portfolio balance is as large as it can be, it's critical to keep those fees low.
Investing in the SPDR S&P 500 ETF Trust is an easy way to diversify your portfolio and give you exposure to a wide range of companies through just a single investment. It can be the ultimate no-brainer investment for the long term, as you can be confident that it'll end up rising in value over time.