Overview of the S&P 500 and SPDR S&P 500 ETF

The S&P 500 stands out as an accessible and effective choice for long-term buy-and-hold investors. Since its launch in 1993, the SPDR S&P 500 ETF (SPY) has achieved over 2,700% in returns.

Currently, it is among the largest ETFs available, managing more than $700 billion in assets.

About the SPDR S&P 500 ETF

The SPDR S&P 500 ETF, founded in January 1993, is one of the top five largest ETFs in existence today, boasting assets over $718 billion as of the end of December 2025.

Evolution of the S&P 500

What’s interesting is how the index has shifted over time. Back in the early 1990s, its largest allocations were primarily in energy, industrial, and consumer sectors, with technology making up just about 5%. That’s quite a change, right?

Fast forward to recent years, technology allocations have jumped to around 35%. This all happened after the tech bubble popped and financials, which used to account for about 22%, saw their share plummet during the financial crisis. Currently, tech stocks dominate yet again, holding roughly 34% of the index.

Performance of the SPDR S&P 500 ETF

Throughout its 33 years, the ETF has consistently provided solid returns to investors, generating an average annual return of 10.7%. If you calculate the cumulative return since it started, that’s an impressive 2,740%.

This means that a $1,000 investment made when it first launched would now be valued at about $28,400. Amazing to think about how long-term buy-and-hold strategies can yield such benefits, right? Even through major events like the tech bubble, the financial crisis, and the pandemic, the S&P 500 remains a top choice for long-term investments.

Considerations Before Investing

Before diving into shares of the SPDR S&P 500 ETF Trust, it’s worth reflecting on some factors.

According to our analyst team, there are alternatives they believe might outperform the SPDR S&P 500 ETF Trust. They’ve identified ten stocks that, in their view, could lead to significant returns in the upcoming years.

Notable Stock Recommendations

For example, if you had invested $1,000 in Netflix on December 17, 2004, you would be looking at about $490,703 today. Similarly, if you invested in Nvidia back on April 15, 2005, that $1,000 would have ballooned to about $1,157,689. Quite the returns!

In contrast, the average return of the stock recommendation service is approximately 966%, outpacing the S&P 500’s 194%. It really highlights how some stocks can outperform the index significantly.

Join a community dedicated to retail investors and stay informed about the latest stock recommendations.