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This Overlooked Index Beats the S&P 500 Over 30 Years

Summarized from MarketWatch.com - Top Stories

One under-the-radar index has quietly outperformed the S&P 500 over three decades. The math isn't even close.

Everyone defaults to the S&P 500. It's the benchmark. It's what your 401(k) brochure shows. But defaulting to the obvious play doesn't mean you're making the best one — and a 30-year track record is hard to argue with.

MarketWatch ran the numbers across three full decades, and the results point to a lesser-known index that has consistently outpaced America's most celebrated benchmark. We're not talking about a marginal edge here. The gap is significant enough that ignoring it could be costing you real money over time.

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This is the kind of long-horizon data that should matter most to you if you're a buy-and-hold investor. Short-term noise is irrelevant. What counts is compounding — and if a different index compounds faster over 30 years, that's your signal to pay attention.

The takeaway isn't to panic-sell your S&P 500 ETF tomorrow. It's to recognize that the most popular option isn't automatically the best option. Diversifying your index exposure, or at minimum understanding what else is out there, is just smart portfolio hygiene.

Continue reading at MarketWatch.com

Frequently Asked Questions

Q.What index outperforms the S&P 500 over 30 years?

MarketWatch identified a lesser-known index that has outpaced the S&P 500 over a 30-year period, though the specific index is detailed in the full article.

Q.How significant is the performance gap between this index and the S&P 500?

According to MarketWatch's analysis, the margin of outperformance over 30 years is substantial — described as 'not even close.'

Q.Should I switch from the S&P 500 to a different index based on this data?

The analysis covers a 30-year window, making it most relevant for long-term, buy-and-hold investors who prioritize compounding returns over time.

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