Vanguard S&P 500 ETF's Stunning 3-Year Run: What Crypto Can Learn

The Vanguard S&. P 500 ETF's performance between 2023 and 2025 is a benchmark-defying feat. In this three-year stretch, it posted a total return of 26.3% in 2023, 25% in 2024, and 17.8% in 2025, including dividends. These figures significantly outpace the long-term S&. P 500 average annual total return of 9% to 10%. Such gains weren't just numbers on a spreadsheet, they represented real market dominance, particularly among megacap growth stocks which propelled the market to unprecedented heights.

During this period, the S&. P 500 didn't just outshine value stocks. it also overshadowed most sectors, driven by significant contributions from companies like Nvidia. Alone, Nvidia added an astonishing $4.1 trillion in market cap, underscoring the influence of tech giants in the broader equity market. For investors, simply holding an S&. P 500 ETF was the ticket to riding this wave, demonstrating the power of passive investment strategies in seizing market opportunities.

But what does this mean for the world of crypto? In a space often characterized by volatility, the ETF's steady climb offers a lesson in market resilience and the benefits of diversification. As crypto investors look to replicate such success, the focus should perhaps shift more toward projects with reliable backing and clear long-term viability. Look, the reserve composition matters more than the peg. Here’s the thing: while crypto isn't mirror the stock market exactly, understanding what drives traditional market success can inform smarter crypto strategies.