Over the 33 years from 1993 to 2026, the SPDR S&P 500 ETF (SPY) delivered a cumulative return of roughly 2,770% with dividends reinvested, or about 10.7% annualized before inflation and taxes.
That figure lines up with what many investors treat as a long-run benchmark for U.S. equities. But focusing on returns alone ignores the amount of risk required to earn them. Over that same period, annual volatility for the S&P 500 as measured by the Cboe Volatility Index (VIX) sat near 18.6%, meaning sizable year-to-year swings in the market's "fear index" were the norm.
