Did the ASX 200, NASDAQ 100, or S&P 500 perform better this year?

You might be surprised which index led the field in 2025.

Key points
  • The ASX 200 Index has risen 7.25% this year, recovering from an early decline caused by tariff news, but it remains just below its historical average annual return.
  • In contrast, the S&P 500 Index increased by 17.21% and the NASDAQ-100 Index surged 21.39%.
  • Investors can gain exposure to these indexes through various ASX ETFs, such as BetaShares Australia 200 ETF for the ASX 200, iShares S&P 500 ETF for the S&P 500, and BetaShares NASDAQ 100 ETF.

There are plenty of indexes Aussie investors track to measure their portfolio performance. Here in Australia, the benchmark index is the S&P/ASX 200 Index (ASX: XJO). 

It is made up of the 200 largest Australian companies based on market cap.

It is heavily weighted towards Australia's largest companies like Commonwealth Bank of Australia (ASX: CBA) and mining giants like BHP Group (ASX: BHP). 

Because these companies are significantly larger than most of the others, the ASX 200 index is largely influenced by how these blue-chip companies perform. 

For example, CBA is twice as big as the next largest bank and almost 5x larger than the 11th largest company listed on the ASX. 

A man in his late 60s, retirement age, emerges from the Australian surf carrying a surfboard under his arm and wearing a wetsuit.

Image source: Getty Images

How did the ASX 200 perform this year

The ASX 200 index started the year at 8,201 points. 

It dropped significantly from February to early April, declining more than 14% in that span. 

This was largely due to a strong sell-off in early April as investors reacted to Tariff news from the US. 

After this initial panic, the ASX 200 steadily recovered. 

Prior to Christmas eve, it closed trading at 8,795.70 points, which is an overall rise of 7.25% for the year. 

Overall this sits just below, but close to an average year for the index. 

Motley Fool research shows the ASX 200 has compounded at roughly 9% per annum over the last 10 years, dividends included.

How does this compare to the US?

Two of the key indexes investors pay close attention to in the US are the S&P 500 Index (SP: .INX) and the NASDAQ-100 Index (NASDAQ: NDX). 

The first, the S&P 500 index, is widely regarded as the best single gauge of large-cap U.S. equities. 

The index includes 500 leading companies and covers approximately 80% of available market capitalisation.

Meanwhile, the Nasdaq 100 Index includes 100 of the world's largest non-financial companies listed on the broader Nasdaq sharemarket. 

As a collection of dynamic companies at the forefront of innovation, the Nasdaq 100 Index has come to represent the 'new economy'. 

This year, the S&P 500 Index has risen 17.21%. 

Meanwhile, the NASDAQ-100 Index has risen 21.39%. 

Since 1985 (until December 2024), the NASDAQ-100 index has provided an average annual return of 14.25%, compared to 11.57% for the S&P 500. 

How do investors get exposure?

For investors looking to track these Australian and global indexes, there are many ASX ETFs to choose from. 

For exposure to the ASX 200, some options include: 

To track the S&P 500: 

To track the NASDAQ 100, investors can consider: 

  • BetaShares NASDAQ 100 ETF (ASX: NDQ)
  • Betashares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ)

Motley Fool contributor Aaron Bell has positions in BHP Group and BetaShares Nasdaq 100 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended BHP Group, Betashares Nasdaq 100 ETF - Currency Hedged, 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.

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