P
Pulsafi

Average Investor Return (2026)

5.5%
Average individual investor 20-year annualized return
Summary

The average individual US investor's 20-year annualized return is approximately 5.5% — meaningfully below the 9-10% the broad market produced over the same period. The gap (called 'behavior gap' or 'investor underperformance') comes from buying high, selling low, market timing, and chasing performance.

Breakdown

Avg investor 20-year return5.5%
S&P 500 20-year return9.5%
Behavior gap~4%
Top reason for underperformanceMarket timing
Cost of behavior gap on $100K, 20yr~$280,000
Source
DALBAR Quantitative Analysis of Investor Behavior (QAIB)· As of 2026-Q1

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All Pulsafi stats are sourced from primary government data and major financial institutions. Read the full methodology and data-sources page.