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S&P 500 Index (^GSPC) Sharpe Ratio: 1.86

Index · Currency in USD · Last updated Jun 13, 2026

The S&P 500 Index (GSPC, or SP500), is a stock market index that represents the performance of the 500 largest publicly traded companies in the US. The index comprises many industries, including technology, healthcare, financials, consumer staples, etc. It is widely considered a leading indicator of the overall performance of the US stock market. It is often used as a benchmark for the performance of mutual funds, ETFs, and other investment products.

The S&P 500 Index is calculated by Standard & Poor's, a financial services company. It is a market-capitalization-weighted index, meaning that the weight of each company in the index is based on its market capitalization (the value of its outstanding shares of stock). The index is rebalanced periodically to reflect the current market conditions.

The S&P 500 Index is often used as a benchmark for the performance of mutual funds, ETFs, and other investment products because it provides broad exposure to the US stock market and represents a diverse range of industries. In addition, many investors use the S&P 500 Index as a benchmark for their portfolio performance, or they may invest in products that track the index's performance, such as ETFs.

^GSPC's Sharpe Ratio of 1.86 indicates that for each unit of volatility, it generates 1.86 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 13, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

^GSPC Sharpe Ratio Rank

^GSPC Sharpe Ratio Rank: 71.672
Above Average

^GSPC ranks above 71.6% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating above-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Above-average risk-adjusted returns with room for improvement
  • Compare against category peers to gauge relative positioning
  • Monitor for movement toward top tier or decline toward median
  • Consider pairing with top-tier holdings to improve portfolio efficiency

^GSPC Sharpe Ratio Market Positioning

The chart shows ^GSPC's Sharpe Ratio relative to all indices on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.35 or lower
  • Yellow zone (middle 50%): 0.35 to 1.98
  • Green zone (top 25%): 1.98 or higher
  • Top 1%: 4.82+
  • Median: 1.51 — half of all investments score higher

How it compares to other similar indices

The table compares ^GSPC's Sharpe Ratio with other similar indices across multiple time periods, showing relative risk-adjusted performance.

Data shows 1-, 5-, and 10-year periods, plus each index's all-time average, as of Jun 13, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
^CASHXUS Money Market Index259.86
^NWXARCA Networking4.82
^SOXPHLX Semiconductor Index4.21
^DJUSSTDow Jones U.S. Iron & Steel Index3.37
^PUTCBOE S&P 500 PutWrite Index2.50
^XAXNYSE American Composite Index2.25
^IMXLDow Jones Islamic Market Titans 100 Index2.21
^NDXTNASDAQ 100 Technology Sector Index2.20
^DJTDow Jones Transportation Average2.17
^W1DOWDow Jones Global Index2.14
^GSPCS&P 500 Index1.86

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows ^GSPC's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when ^GSPC consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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How does ^GSPC fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

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