If you’re hoping for short-term gains, be ready to take some risk. However, for a 10-year period starting May 31, 2009, a 13.94% annual return rate for FSKAS has been realized. Historically, the stock market average return is about 10% annually. An annual return rate of 7.29% has been the minimum return. This can happen in the middle of the year, and the market can recover by year-end, so a market correction may never show up as a negative in calendar-year total returns. Learn more. Total return is typically expressed as a percentage of the amount that was invested. We are talking about extended periods: 20-30 years or even more. If you want to attempt to earn the average stock market return when you invest in the stock market, there are a few things you can do to get as close as possible. This may be different from the ETF's NAV return. These tools can also be utilized by many speculators for leverage d speculative purposes.Derivative s are used by many for arbitraging by utilizing the price discrimination between different markets. Volatility Makes Average Returns Uncommon Sometimes people like … The long-term annual return rate is what you want to look at due to market volatility and that’s at about 7% for both. That's what buy-and-hold investors have historically earned before inflation. In most cases, that period is one year. 2. Due to the cyclical nature of the economy, recessions tend to be followed by strong recoveries. What does it look like when more abnormal returns occur? In 1957, the year the S&P 500 was created, the stock market saw a loss of almost 11%. (Source: Morning Star) In the long term, the annual stock market return is about 10%. for hedging the risk associated with such investments. Arithmetic mean returns are calculated by adding up all the annual returns from the historical data and then dividing by the number of years in the data set. The average stock market return over the long term is about 10% annually. Buying stocks should be a long-term investment. Total return is the total income earned, i.e., dividends plus capital gains, from an investment over a given period. market return definition: the amount of money earned by investments: . While extreme returns can happen, almost 40% of annual returns have fallen within the -10% to 10% range.. Recessions and Recoveries. Stock Market Returns are subject to risk but now days there are many derivative instrument s like future s, option s, etc. Look at the long term. 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