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2021 S&P 500 Return

The S&P 500 Worth index returned 26.61% in 2021. Utilizing a greater calculation which incorporates dividend reinvestment, the S&P 500 returned 28.41%.

Maximizing 2021 S&P 500 Return: Purchase It, Maintain It, and Reinvest It

There are two methods to compute an annual return, and the numbers I simply quoted you assume you probably did all of your investing in a single yr. Particularly, the above returns assume you got the market open on January 4, 2021, and offered on the precise shut on December 31, 2021.

Should you alternatively meant a “one-year span”, these two returns, respectively, are 26.893% and 28.705%. This assumes, as an alternative, that you simply purchased the December 31, 2020 shut.

S&P 500 Index Worth Calculation

Worth Based mostly On 2021 Start Dec 31 Shut Return
Jan 4 Open 3764.61 4766.18 26.605%
Dec 31 Shut 3756.07 4766.18 26.893%

S&P 500 Whole Return Worth Calculation

Worth Based mostly On 2021 Start Dec 31 Shut Return
Jan 4 Open 7,777.41 9,986.70 28.407%
Dec 31 Shut 7,759.35 9,986.70 28.705%

Dividends Matter

Yearly, I speak about how the precise date you choose would not a lot matter… so long as you retain your timeframes constant. Nevertheless, you do have to thoughts these dividends!

Even with a pandemic raging within the background and all kinds of geopolitical worries, corporations continued to pay dividends constantly. Even in the event you did not reinvest your dividends, except you burned your dividend checks or in any other case discarded your proceeds, you do have to account for that further achieve.

Supply on the 2021 S&P 500 Return Calculations

S&P Dow Jones Indices owns the S&P 500 Index and the entire return index. They solely added the entire return index in 1987; earlier than then, it’s important to assemble your personal index proxy to see how the index has fared.

We now have a set of investing calculators and instruments – most together with provisions for dividend, coupon, or curiosity reinvestment. Listed here are some which spotlight the S&P 500:

The 2021 S&P 500 Return

You will discover the S&P 500 and Whole Return index at Yahoo!. This is a graph displaying the delta in 2021:

S&P 500 in 2021: Reinvested Dividends versus Worth Returns

All you needed to do to select up an additional 1.802 proportion factors of return? Reinvest your dividends.Sure, it isn’t precise because of the timing of your funds and purchases, slippage in the event you had really made the order as an alternative of solely in concept, taxes, and the like. Nevertheless – it was a really actual quantity.

Different years:

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