Over the last 10 years the S&P 500 has produced a 13.76% annualized return (as of January 31, 2025). Investing $1,000,000 in the S&P 500 10 years ago would’ve grown to over $3,600,000, which is a phenomenal return! This has led many doctors to ask us: why should we invest in international stocks and small company stocks, when we can make more money simply investing exclusively in the S&P 500?

A Blast From the Past

Since 1926, the S&P 500 has averaged an annualized return of only 10.44%, showing a return gap of more than 3% compared to the last 10 years. Has a new era of investing started? While we cannot answer that for certain, we can look to history to provide context.