All of this is correct, but the standard S&P 500 index doesn't include dividends...

hudibras on Dec 11, 2016 | parent | context | favorite | on: Ask HN: What was your best passive income in 2016?

All of this is correct, but the standard S&P 500 index doesn't include dividends, so your typical index fund will (should) do 1-4% better each year than the S&P 500. The S&P 500 does have a lesser-known version that includes the total returns: https://www.google.com/finance?q=INDEXSP%3ASP500TR&ei=WWJNWK...

smileysteve on Dec 11, 2016 [–]

Index funds such as SPY do include the dividends. VGO (specifically) also has a 1.94% yield.