Has the ASX 200 or S&P 500 been a better investment this year?

Here in Australia, the S&P/ASX 200 Index (ASX: XJO) acts as the benchmark index. 

It includes the 200 largest Australian companies based on market capitalisation. 

The index is also market-cap weighted, meaning bigger companies have more influence on the index’s movement

In simple terms: it shows how the top slice of the Australian stock market is performing overall.

Here in Australia, it has a strong weighting towards big banks and mining companies, which make up most of the largest companies. 

Investors often monitor the performance of this index to compare how their portfolio compares. 

Many Aussie investors also compare the ASX 200 index to the benchmark index in the US – the S&P 500 Index (SP: .INX). 

The S&P 500 tracks the performance of 500 of the largest publicly traded companies in the United States.

Unlike the ASX 200, it is weighted heavily towards technology giants like Apple (NASDAQ: AAPL) and consumer discretionary stocks like Amazon (NASDAQ: AMZN. 

How do you invest in these markets?

The simplest way for investors to gain exposure to these markets is through ASX ETFs. 

If you are looking to track the performance of the ASX 200, two options to consider are: 

• iShares Core S&P/ASX 200 ETF (ASX: IOZ)
• BetaShares Australia 200 ETF (ASX: A200). 

Meanwhile, for exposure to the S&P 500, investors may consider: 

• iShares S&P 500 ETF (ASX: IVV)
• SPDR S&P 500 ETF Trust (ASX: SPY). 

There are also several alternatives to these ASX ETFs that may provide a slightly different focus for investors to consider. 

For example, investors looking for slightly more diversification in the Australian market could consider the Global X Australia 300 Etf (ASX: A300). 

As the name suggests, it includes the 300 largest companies rather than the traditional 200. 

Focussing on the US, another popular investment is in the BetaShares NASDAQ 100 ETF (ASX: NDQ). 

This index is often referred to as representing the new economy – including 100 of the largest non-financial companies listed on the Nasdaq in the US. 

My colleague Grace Alvino explains why investors may target this fund instead of the traditional S&P 500 in her article from this morning. 

It’s also important to note that investors do not have to decide between one or the other.

Many investors choose to include both US and Australian focussed funds in their portfolio.

Which is performing better this year?

So far in 2026, the ASX 200 has increased by approximately 2.7%. 

Considering a fall of 9% during March, it has shown resilience to geopolitical volatility this year. 

Meanwhile in the US, the S&P 500 has increased 1.59%. 

Finally, the NASDAQ-100 Index (NASDAQ: NDX) is currently tracking somewhere in between the two, rising 2.5% year to date. 

The post Has the ASX 200 or S&P 500 been a better investment this year? appeared first on The Motley Fool Australia.

More reading

• 3 top ASX ETFs I’d buy and hold for 10 years (and why)
• How I would build the ultimate beginner portfolio with $10,000
• Why ASX investors dumped IVV ETF last month
• How ASX ETF investors repositioned as the Iran war shook markets
• I’m planning to buy loads of these ASX ETFs for my retirement

Motley Fool contributor Aaron Bell has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, and iShares S&P 500 ETF and is short shares of Apple and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.