Here is the average stock market return over the past 15 years:

The New York Stock Exchange and the Nasdaq Stock Exchange, two of the largest stock trading platforms in the United States, have over 5,700 companies listed on them. Some of these companies are grouped into indexes that measure different aspects of the national stock market. Some indexes are very broad, while others are fairly niche.

All three major U.S. stock indexes are in the black this year. S&P 500 (^GSPC 0.16%) Up 15% and blue chip stock Dow Jones Industrial Average (^DJI 0.04%) 4% increase, growth-oriented Nasdaq Composite Index (^IXIC 0.49%) It increased by 19%.

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

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

The S&P 500 tracks the 500 largest, most profitable US companies. The index is weighted by market capitalization, giving larger companies a greater influence on performance. The index includes value and growth stocks from all 11 market sectors and covers approximately 80% of US stocks by market capitalization.

The S&P 500 is generally considered to be the best benchmark for the entire U.S. stock market because of its scope and diversity. Investors can: Vanguard S&P 500 ETF (VOO 0.11%)The top five index fund positions are listed below in order of weighting.

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 pace, investing $50 per week into 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% annualized)

The Dow Jones Industrial Average tracks 30 US companies. The index is weighted by stock price, meaning that companies with higher stock prices have a greater influence on their performance. There are no strict inclusion criteria, but the selection committee focuses on companies that have a good reputation, a history of sustained growth, and widespread investor interest.

The Dow Jones Industrial Average is generally considered a barometer of blue-chip stocks. Investors SPDR Dow Jones Industrial Average ETF (diameter 0.06%)The top five index fund positions are listed below in order of weighting.

1. UnitedHealth Group: 8.1%
2. Goldman Sachs Group: 7.8%
3. Microsoft: 7.6%
4. Home Depot: 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, investing $50 per week in the SPDR Dow Jones Industrial Average ETF would be worth $87,000 after 15 years and $488,000 after 30 years.

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

The Nasdaq Composite Index tracks over 3,000 companies, the majority of which are domestic. The index is weighted by market capitalization, meaning that companies with higher market capitalizations have a greater influence on performance. It includes only stocks that are listed exclusively on the Nasdaq stock exchange.

The Nasdaq Composite Index is widely regarded as a benchmark for growth stocks, especially in the technology sector. Investors can gain exposure to the index by purchasing Nasdaq Composite stocks. Fidelity Nasdaq Composite ETF (One Ex 0.44%)The top five index fund positions are listed below in order of weighting.

1. Microsoft: 11.4%
2. apple: 10.9%
3. NVIDIA: 10.1%
4. alphabet: 7.4%
5. Amazon: 6.8%

The Nasdaq Composite Index has returned 873% over the past 15 years, which equates to 16.4% per year. If you invested $50 per week into the Fidelity Nasdaq Composite ETF at this pace, it would be worth $137,000 in 15 years and $1.4 million in 30 years.

Regular investments and patience are the keys to success in the stock market

The U.S. stock market has performed well over the past 15 years. However, investors should not expect the same returns in the future. Returns fluctuate with the economic environment. For example, 15 years ago, the U.S. economy was recovering from the Great Recession, so domestic stocks were poised to soar. But 20 years ago, the U.S. economy was heading toward the Great Recession, so domestic markets were poised to decline.

The chart below shows how the three major US stock indexes have performed over various periods. It’s important to note that performance is measured in price returns and excludes dividends. Notice that all three stock indexes have had lower annualized returns over the past 20 years compared to the past 15 years.

The three major U.S. stock indexes have delivered generally strong returns to date, but their performance has fluctuated over time due to changes in the economic situation.

Dividend payments are a major contributor to the performance of the three major stock indexes. 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 Index would have returned 12.5% ​​per year.

Looking ahead, the U.S. stock market will continue to generate wealth for patient investors, but its performance will fluctuate based on temporary macroeconomic factors such as inflation and interest rates. Investors can compensate for these fluctuations by continually adding money to index funds that track the S&P 500, Dow Jones Industrial Average, or Nasdaq Composite Index. In other words, strategies that rely on market timing should be avoided.