The average company tenure in the S&P 500 is now among the lowest on record. On average, companies remain in the index for about 15 years before being replaced or moving into smaller indexes. The 2000s also saw relatively short tenures, averaging around 17.3 years, likely influenced by the fallout from the Dot-com Bubble. This trend highlights how quickly markets evolve and underscores the value of diversification and passive investing as companies rise and fall over time.
Source: Innosight , Statista, Apollo Chief Economist, The Business Week Graphic
Notes: Average company lifespan on S&P 500 index in years (rolling-7-year average) and decade averages.
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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