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S&P 500 or a global index fund?

The two overlap more than most people think: 72% of a global index is American. The real question is whether you want the other 28%.

A Snowball Index explainer · reviewed 15 Sept 2026 · ~4 min read

Side by side

S&P 500MSCI World
Companies5031,280
Countries123
US share100%72%
Ten largest companies37.6% of the index26.6% of the index
Return per year, last 10 years13.17%13.56%

The S&P 500 figures are from 31 July 2026 and the MSCI World figures from 31 August 2026, both in US dollars with dividends reinvested, so the returns are not for exactly the same period.[1][2] The S&P 500 covers approximately 80% of the available US market value.[1]

What the difference is

What about past returns?

Over the last 20 years the US market has returned more than the global market. In our index comparison the 20-year averages are about 11% and 9% a year. That is the past. Markets that lead in one period have often lagged in the next, and nobody knows which will lead over the coming 20 years.

A global index fund already gives you the S&P 500 companies, plus 22 more countries. Choosing only the S&P 500 is a bet that the United States keeps outperforming. This is general information, not a recommendation.
See both indices side by side over 10, 20 or 25 years.Compare indices

Common questions

Can I own both?

You can, but a global fund already holds the large US companies. Adding an S&P 500 fund on top raises your US share above 72%. Do it only if that is what you want.

Is the S&P 500 riskier?

It is less diversified: one country and a higher share in the ten largest companies. Whether that turns out worse or better depends on how the United States does compared with the rest of the world.

Sources & further reading

We cite independent authorities so you can verify everything yourself. Last reviewed 15 Sept 2026.

  1. S&P Dow Jones Indices — S&P 500 factsheet, 31 July 2026 (copy hosted by TopForeignStocks)
  2. MSCI — MSCI World Index (USD) factsheet, 31 August 2026

Keep learning

How do I start?

Three easy steps.

1
Open an account with a reputable, low-cost platform.
2
Buy a broad index fund – e.g. one tracking MSCI World.
3
Set up a monthly deposit and leave it alone.
Platforms for