The S&P 500 more than doubled in value between the start of 2020 and Oct. 15, 2025. Investing in the large-cap index is a great way to increase your net worth over time, but also a boring way to make a buck — especially compared to owning luxury handbags.

The question is: Can investing in luxury handbags produce returns comparable to the S&P 500? A study by FashioNica analyzed the value gains of high-end handbags, sneakers, jewelry, and watches between 2020 and 2025. The goal was to identify which pieces had appreciated the most and compare their performance to the financial markets.

Collector fashion pieces vs. the S&P 500

Sadly, the logo’d pieces all underperformed relative to the S&P 500. One, a pricey Chanel bag, got close with a 93% gain. Another, a Louis Vuitton x Supreme courier truck, added $64,500 to its value for a 76% gain.

Fashion v. finance: The five-year scorecard

Here’s a look at the best performers and how much they appreciated. Prices shown are in U.S. dollars.

1. Chanel Classic Flap bag: The five-year front-runner

The Chanel Classic Flap bag (2.55 Reissue Medium/225) was the item that appreciated the most, climbing 93% in value between 2020 and 2025. Coco Chanel designed this bag in February 1955 and the reissue was released on its 50^th anniversary.

2. Louis Vuitton × Supreme trunk: The heavyweight gainer

The limited-edition Louis Vuitton × Supreme Malle Courrier 90 trunk gained the most in dollars, up $64,500 in five years. The trunk was a product of a heavily promoted 2017 collab with streetwear brand Supreme.  

The trunk uses signature Louis Vuitton details including a Gaboon wood body, cowhide leather trim, metal hardware, and quilted interior lining. It also has a Supreme logo across the center.

3. Louis Vuitton x Takashi Murakami Multicolor Speedy 30

Another LV collab delivered the third-best return among the fashion pieces analyzed. Marc Jacobs, LV’s creative director at the time, partnered with Japanese pop artist Takashi Murakami to update the LV monogram using more than 30 silk-screened colors. The colorful bag was introduced in Spring/Summer 2003.

Read next: How to tell if your Louis Vuitton is fake

4. Hermès Birkin 35 Porosus Crocodile Black

The Hermès contribution to the top-five list is the Birkin 35 Porosus Crocodile bag in black, considered one of the world’s rarest bags. The material, skin of the salt-water Crocodylus porosus, is a premium exotic leather known for scales that are larger in the center of the bag and get smaller towards the edges. The purse’s shiny black exterior is complemented by gold hardware.

The Hermès bag has a current estimated value of $64,000, which is 73% higher than its price tag in 2020.

5. Chanel Graffiti Backpack

The Chanel Graffiti Backpack was introduced in the Spring/Summer 2014 collection under Karl Lagerfeld. The canvas bag has a worn, rebellious look adorned with signature brand details, including quilted panels, chain straps, and the 31 Rue Cambon Paris stamp.

You wouldn’t expect a canvas Chanel bag to carry a price tag of $15,000, but hey, there are stranger things.

Read next: Deals on designers! 9 online clothing auction sites

How to invest in luxury

The FashionNica study reports that seven of the top 10 most-appreciating fashion pieces were handbags. Luxury purses from Chanel, Louis Vuitton, and Hermès consistently outperformed sneakers, watches, and jewelry.

Does this mean high-end handbags are a legit investment category? Possibly, but I doubt anyone’s recommending you cash out your 401(k) to buy luxury purses. What you could do is dabble in fashion investing for the same reasons some people collect classic cars: It’s fun and there could be upside.

Follow these guidelines to incorporate your fashion sense into your wealth plan safely:

• Start small. Luxury handbags fall into the alternative asset category. Specifically, they are collectibles like fine art or wine. They can appreciate, but growth isn’t guaranteed, linear, or predictable. Often, you don’t know a collectible’s value until you try to sell it. For those reasons, it’s wise to keep your fashion investment limited to 2% or less of your total portfolio.
• Prioritize storage. You will get the most investment value from a bag that remains unused and well-protected from the elements. If you want to carry your luxury bag now and then, you can — knowing there could be a trade-off. Any signs of wear will lower its gain potential.
• Keep everything. Investors like documentation and complete sets. Store the bag, original packaging, and your receipt in a safe place.
• Lean into the classics. Opt for classic logos, such as Chanel, Hermes, and Louis Vuitton. Bags with neutral colors and classic hardware are safer options than trendier, “it” bags.
• Choose limited runs wisely. Limited editions and special collaborations can be investment hits, or they can flop quickly at the season’s end. Choose something different only if you have an eye for pieces that have staying power.
• Invest for the love of fashion, not for the gains. Don’t use your rent money to buy luxury handbags. The appreciation timeline can be long and uncertain. There are no guarantees with any investment, and collectible fashion pieces are no different.

Luxury fashion won’t replace your retirement fund — but sometimes style and value do overlap. The best approach is to buy what you love and take good care of it. If that pricey bag pays you back 20 years from now, awesome. If not, well, that’s why investors stay diversified.