Here is the average stock market return over the last 15 years

More than 5,700 companies are listed on the New York Stock Exchange and Nasdaq, the two largest U.S. securities trading platforms. Some of these companies are grouped into indices that measure different aspects of the national stock market. Some indices are quite broad, while others are rather specialized.

The three most popular U.S. stock indexes are in the black this year. The wide range S&P500 (^GSPC 0.04%) advanced by 15%, the star value Dow Jones Industrial Average (^DJI 0.25%) grew by 4%, and the sector is focused on growth Nasdaq Composite Index (^IXIC 0.22%) advanced 19%.

Read on to find out how the three stock indexes have performed over the past 15 years.

The S&P 500: 15-year return of 495% (12.6% per year)

The S&P 500 tracks 500 large, profitable U.S. companies. The index is weighted by market capitalization, so larger companies have more influence on its performance. It includes value stocks and growth stocks from all 11 market sectors and covers approximately 80% of U.S. stocks by market capitalization.

The S&P 500 is generally considered the best benchmark for the entire U.S. stock market due to its scale and diversity. Investors can gain exposure to the index via the Vanguard S&P 500 ETF (FLIGHT 0.09%)The index fund's five largest holdings are listed by weighting below.

1. Microsoft: 6.9%
2. Apple: 6.3%
3. Nvidia: 6.1%
4. Alphabet: 4.2%
5. Amazon: 3.6%

The S&P 500 has returned 495% over the past 15 years, which equates to 12.6% per year. At this rate, $50 invested each week in the Vanguard S&P 500 ETF would be worth $101,000 in 15 years and $705,000 in 30 years.

Dow Jones Industrial Average: 15-year return of 362% (10.7% per year)

The Dow Jones Industrial Average tracks 30 American companies. The index is weighted by share price, so companies with more expensive shares have more influence on its performance. It is not governed by strict inclusion criteria, but the selection committee focuses on companies with a good reputation, a history of sustained growth and broad interest among investors.

The Dow Jones Industrial Average is generally considered a barometer for blue chip stocks. Investors can gain exposure to the index through the SPDR Dow Jones Industrial Average ETF (DIA 0.23%). The index fund's five largest holdings are listed below by weighting.

1. UnitedHealth Group: 8.1%
2. Goldman Sachs Group: 7.8%
3. Microsoft: 7.6%
4. Home deposit: 5.7%
5. Caterpillar: 5.5%

The Dow Jones Industrial Average has returned 362% over the past 15 years, which equates to 10.7% per year. At this rate, $50 invested each week in the SPDR Dow Jones Industrial Average ETF would be worth $87,000 in 15 years and $488,000 in 30 years.

Nasdaq Composite: 15-year return of 873% (16.4% per year)

The Nasdaq Composite tracks more than 3,000 companies, the vast majority of which are domestic. The index is weighted by market capitalization, so the most valuable companies have the greatest impact on its performance. Only stocks listed exclusively on the Nasdaq Stock Exchange are included.

The Nasdaq Composite is widely considered a benchmark for growth stocks, particularly those in the technology sector. Investors can gain exposure to the index by purchasing shares of the Fidelity Nasdaq Compound ETF (ONEQ 0.16%). The index fund's five largest holdings are listed below by weighting.

1. Microsoft: 11.4%
2. Apple: 10.9%
3. Nvidia: 10.1%
4. Alphabet: 7.4%
5. Amazon: 6.8%

The Nasdaq Composite has returned 873% over the past 15 years, which equates to 16.4% per year. At this rate, $50 invested each week in the Fidelity Nasdaq Composite ETF would be worth $137,000 in 15 years and $1.4 million in 30 years.

Regular investments and patience are the keys to stock market success

The US stock market has performed well over the past 15 years. But investors shouldn't expect identical returns in the future. Returns fluctuate depending on the economic environment. For example, the U.S. economy was recovering from the Great Recession 15 years ago, so domestic stocks were poised to soar. But the U.S. economy was heading into the Great Recession of the past 20 years, so the domestic market was poised for decline.

The chart below shows the performance of the three major US stock indexes over different periods. It is important to note that performance is measured by price returns, which means that dividend payments have been excluded. Note that all three stock indexes have had lower annual returns over the past 20 years compared to the past 15 years.

The three major U.S. stock indexes have generally generated robust returns in the past, but their performance has fluctuated over different periods due to variations in economic climate.

Dividend payments contribute significantly to the performance of the three main stock indices. For example, if dividends had been reinvested over the past 20 years, the S&P 500 would have returned 10.3% per year, the Dow Jones Industrial Average would have returned 9.2% per year, and the Nasdaq Composite would have returned 12.5% ​​per year. % per year.

Going forward, the U.S. stock market will continue to create wealth for patient investors, but its performance will fluctuate based on transitory macroeconomic factors like inflation and interest rates. Investors can offset these fluctuations by regularly adding money to any index funds that track the S&P 500, Dow Jones Industrial Average, or Nasdaq Composite. In other words, avoid strategies that depend on market timing.