Shocker: The S&P 500 is underperforming the stock market

Only a small minority of the companies in the S&P 500 provides all of the index’s excess return over cash each year, according to research by Professor of Finance Hank Bessembinder, who is the Francis J. and Mary B. Labriola Endowed Chair in Competitive Business. He evaluated lifetime returns to every U.S. common stock traded on the New York and American stock exchanges and the Nasdaq since 1926.

In this article published June 27, 2019, on MarketWatch:

The best-performing 4% of listed companies explain the net gain for the entire U.S. stock market from 1926 through 2016.


Hank Bessembinder, professor of finance and Francis J. and Mary B. Labriola Endowed Chair in Competitive Business