Summary: What You Can Get From This Article
If you’ve ever wondered whether Apple’s stock (AAPL) actually outperforms the S&P 500, and how you can figure that out for yourself—even if you’re not a Wall Street pro—this article will walk you through it. I’ll share my hands-on experience checking Apple’s annualized returns, stacking them up against the S&P 500, and even point out some of the quirky differences I found along the way. Plus, I’ll show you where to grab reliable data, and round things out with a comparison table on how different countries verify trading standards (just to keep things interesting and globally relevant). You’ll get practical steps, real screenshots, and a few stories of my own blunders so you don’t repeat them.
Can We Really Compare Apple’s Stock to the S&P 500?
This is actually a more common question than you’d think. I first tried to answer it during the 2022 market rollercoaster. My thinking was: if I’d just bought Apple instead of a boring index fund, would I be richer, or would I have missed out? You’d be surprised how many people just assume Apple beats everything, but the data tells a more nuanced story.
Step 1: Get the Right Data—Don’t Just Rely on Hype
First, you need accurate, historical total return data (including dividends) for both Apple and the S&P 500. I use Portfolio Visualizer for this, since it gives both price and total return charts. Yahoo Finance (AAPL historical data) is okay for quick checks, but it doesn’t always factor in dividends, which slightly underestimates the real return.
Here’s how I do it, step by step (with screenshots below):
- Go to Portfolio Visualizer.
- Under “Portfolio 1”, type in “AAPL”. For “Portfolio 2”, type “VFIAX” (which tracks S&P 500).
- Set the start date. I usually pick 10 years for a fair comparison, but you can go back further (though Apple’s IPO was 1980, so don’t go before that).
- Hit “Analyze Portfolios”.
Okay, full disclosure: The first time I did this, I totally forgot to set “Reinvest Dividends”, so the S&P 500 looked way worse than it actually is. Rookie move! Remember to always check the “Reinvest Dividends” box.
What you’ll see is a side-by-side, annualized return, and a growth chart. In my latest run (June 2014 - June 2024), here’s what the data showed:
- Apple (AAPL) Annualized Return: 27.3%
- S&P 500 Annualized Return (VFIAX): 12.9%
(Source: Portfolio Visualizer, 2024)
Step 2: Double-Check With a Second Source
Because I’m kind of obsessive (and because sometimes data sources differ a little), I usually check YCharts or Morningstar for validation. Sometimes, YCharts’ numbers are a tad lower, but the general magnitude is the same.
Just for fun, I once tried doing this in Excel with Yahoo’s historical data. It took forever, and I messed up the split-adjustments, so my numbers were off by a mile. Honestly, unless you love spreadsheets, just use Portfolio Visualizer or YCharts.
Why Does Apple Outperform? But Will It Last?
Here’s where things get interesting. For the last decade, Apple’s stock has absolutely crushed the S&P 500. Its 10-year annualized return, as of mid-2024, is more than double the index. But! If you look at the S&P 500’s own fact sheet, the long-term average annual return is about 10-11% (including dividends).
Apple’s edge comes from its explosive growth, massive buybacks, and, frankly, a bit of “tech darling” status. But there’s no law saying this will always be the case. Even Warren Buffett, who owns a huge chunk of Apple via Berkshire Hathaway, has warned that the tech landscape can shift fast (CNBC, 2023).
Let’s Compare: Apple vs. S&P 500 Return Table (Past 1, 5, 10 Years)
| Period | AAPL Annualized Return | S&P 500 Annualized Return | Source |
|---|---|---|---|
| 1 Year | 12.6% | 22.5% | Portfolio Visualizer |
| 5 Years | 34.7% | 15.2% | Portfolio Visualizer |
| 10 Years | 27.3% | 12.9% | Portfolio Visualizer |
The 1-year number is a bit of a fluke, as Apple had a rare underperformance in 2023-2024. Over 5 and 10 years, Apple is way ahead.
Regulatory Angle: "Verified Trade" Standards—A Global Comparison
You might wonder, what does “verified trade” mean on an international scale, and why does it matter for stock markets? Well, the reliability of return data, trade execution, and even index construction can vary by country. Let’s look at a few different standards.
| Country | Standard Name | Legal Basis | Enforcement Body | Key Notes |
|---|---|---|---|---|
| USA | Regulation NMS | SEC Rule 611 | U.S. Securities and Exchange Commission (SEC) | Requires “best execution” and trade verification; source |
| EU | MiFID II | Directive 2014/65/EU | European Securities and Markets Authority (ESMA) | Requires pre- and post-trade transparency; source |
| China | Securities Law, Article 120+ | China Securities Law | China Securities Regulatory Commission (CSRC) | Emphasizes trade authenticity and anti-manipulation; source |
| Japan | Financial Instruments and Exchange Act | Act No. 25 of 1948 | Financial Services Agency (FSA) | Focus on "fair price formation"; source |
Real-World Example: US vs EU Stock Trade Verification Dispute
Let’s say a US investor buys Apple shares on a European platform. Under SEC Regulation NMS, the trade must be executed at the best available price and promptly reported. But under MiFID II, there’s also a requirement for transparency before and after the trade. Sometimes, disputes arise over settlement timing or what counts as “verified”—I’ve actually seen a friend’s trade get stuck in “pending” limbo for days because the clearing standards weren’t harmonized. It’s a headache, but it shows how these rules impact real investors trying to compare performance globally.
Expert Take: What Does This All Mean for Investors?
I once asked a former S&P Dow Jones Indices rep at a CFA Society event, “Does Apple’s outperformance really mean I should just skip the S&P 500?” His answer stuck with me: “Past returns are no guarantee. Apple’s dominance is partly why the S&P 500 did so well—because Apple is such a big chunk of it. But single-stock risk is real. If you want to sleep at night, own both.” I tend to agree, even if it’s less exciting.
Conclusion: The Real Answer (And My Take)
So, is Apple’s annualized return higher than the S&P 500? Yes, by a wide margin over the last decade—more than double, according to Portfolio Visualizer and other sources. But, the S&P 500 offers stability and diversification that a single stock just can’t match. My own experiments (including some silly Excel mishaps) taught me that it pays to check your data, use tools that include dividends, and not assume past performance will always repeat.
If you’re curious, go try these tools yourself. Compare Apple to other tech giants, or even to emerging market indices. And always, always check the underlying standards—whether that’s how a trade is verified, or how returns are calculated. If you’re trading internationally, be aware of different regulatory standards, which can affect everything from how fast your trade settles to whether your returns are really what you think they are.
Final tip: Diversify, but don’t be afraid to double-check the numbers on your favorites. Sometimes, the story is even better than the hype.
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