ASX 200 ETF vs S&P 500: which has outperformed over 5 years

ASX Exchange Traded Funds (ETFs) are popular options for investors looking to diversify their portfolio in just one trade. 

They can be set and forget options for investors preferring a pooled investment rather than picking individual stocks. 

One popular investment strategy is to invest in an ASX ETF that tracks the Australian S&P/ASX 200 Index (ASX: XJO) 

Another option is to invest in an ETF that tracks the US S&P 500 Index (SP: .INX). 

While past performance doesn't guarantee future returns, let's compare how these two markets, and two ETFs in particular have fared over the last 5 years.

BetaShares Australia 200 ETF (ASX: A200)

Because you can't invest directly into the benchmark ASX 200 index, let's look at the index tracking BetaShares Australia 200 ETF (ASX: A200).

This ETF aims to track the performance of an index (before fees and expenses) comprising 200 of the largest companies by market capitalisation listed on the ASX.

At the time of writing, Its largest holdings by weight are: 

• Commonwealth Bank of Australia (ASX: CBA) 11.5%
• BHP Group Ltd (ASX: BHP) 7.7% 
• CSL Ltd (ASX: CSL) 4.8%. 

Over the last five years, the S&P/ASX 200 Index (ASX: XJO) has risen 53.52%, while the A200 ETF has slightly outperformed, rising 53.83%. 

This means a $10,000 investment in the A200 ETF 5 years ago would be worth roughly $15,383 today. 

This hypothetical ride of $10,000 invested in A200 would have included several sharp declines, including drops of more than 10% during some spans. 

It's another reminder that investing with a long term outlook can reward patient investors. 

iShares S&P 500 ETF (ASX: IVV)

This ETF simply aims to track the performance of the S&P 500 Index, which is the largest 500 companies on the US stock market by market capitalisation. 

Its largest underlying holdings are: 

• Apple Inc: 6.74%
• Microsoft Corp: 6.21%
• Nvidia Corp: 5.63%

It has risen 106.55% over the past 5 years, slightly ahead of the actual S&P 500 Index (SP: .INX) which has risen 105.23%. 

A hypothetical investment of $10,000 5 years ago in this ASX ETF would be worth approximately $20,655 today. 

Doubling your money in a 5 year span is nothing to complain about! 

Research shows in the last 30 years, the S&P 500 index (in USD) had a compound annual growth rate of approximately 10%. 

So history would suggest the annualised return over the last five years has been particularly fruitful.

While you can't always expect to double your money over a 5 year period, it also reinforces the benefit of long term investing.

The post ASX 200 ETF vs S&P 500: which has outperformed over 5 years appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Bell has positions in BHP Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and iShares S&P 500 ETF. The Motley Fool Australia has recommended BHP Group, CSL, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025