If You Invest $1,000 in the Vanguard S&P 500 ETF Right Now, Here’s What History Says It Could Be Worth in 20 Years Investing is one of the best ways to create long-term wealth.
And while past performance doesn’t guarantee future returns, the market as a whole has always marched higher over the long run
Investing in individual stocks can actually be quite difficult, as most stocks underperform the market; J.P. Morgan analysts found that about 40% of stocks produced negative total returns between 1980 and 2020. It also didn’t matter what sectors you invested in, as all had their fair share of losers.
However, the market as a whole during this stretch performed well, led by a group of megawinners that outperformed the Russell 3000 Index by 500% or more. About 10% of the stocks in the Russell 3000, which comprises the 3,000 largest companies in the U.S., met this criterion. And it is largely these megawinners that have helped power the S&P 500 higher over the years, as well.