Pound vs S&P 500 since 1972

straight answer

-49% × 6,939%

Updated July 2026 · BLS / FRED · daily closing prices (not exportable)

Since 1972, Pound is down 49% against the dollar and S&P 500 is 6,939% in dollars. S&P 500 held up better. Held as cash, Pound earns no interest, so that line is the exchange rate, not a return.

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Base 100 since 1972

018653731559674611972198119901999200820182027LibraS&P 500
Each line starts at 100 in 1972; values in U.S. dollars.

Why compare British Pound and S&P 500

This duel sets a former reserve currency against the benchmark of American stocks, and the search behind it is really about two different jobs money can do. The pound is an exchange rate held as cash it earns no interest, so its line is only the move against the dollar, not a return. The S&P 500 is a real asset that compounds, the price index of the 500 largest U.S. companies; its total-return figure with dividends would be higher still. The durable pattern is stark: the pound drifts in a range and offers no yield by itself, while stocks climb over the long run but make you pay with deep drawdowns. It is the classic contrast between holding hard cash and owning a slice of the world's most-watched equity market.

Returns by window

WindowBritish PoundS&P 500
1 year 1% 15%
5 years -3% 66%
10 years 1% 237%
since 1972 -49% 6,939%
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The price of return: risk

AssetAnnual volatilityWorst drop
Pound 10% -59%
S&P 500 15% -53%

$10,000 in each, since 1972

AssetValue today
Pound $5,145
S&P 500 $703,882

Frequently asked questions

Pound or S&P 500: which held up better?

Since 1972, S&P 500 is ahead in dollar terms. But a currency held as cash earns no interest, so its figure is the move against the U.S. dollar, not a return.

Is a currency line a return?

No. Holding cash in any currency earns no interest by itself, so the line is only the exchange-rate move against the dollar. A real asset (gold, an index) carries a return — that contrast is the point of this page.

Does the bigger move mean the better holding?

Not on its own — yield and risk matter, and this is not investment advice. The page shows the dollar move and the largest drop; for cash, also weigh the interest you could earn elsewhere.

Keep exploring

U.S. inflation

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Descriptive, educational content computed from official public data. Not investment advice. Past performance does not guarantee future results.