Watch: These Are the Types of Returns Investors Should Expect From the S&P 500

The broad S&P 500 is up 18.7% so far this year, but investors shouldn't count on this type of return every year.

Fredrik Axsater, EVP & Head of Strategic Segments, Wells Fargo Asset Management, expects a long-term return of 7% annually from the S&P 500.

However, a new Wells Fargo (WFC) - Get Report survey, released Tuesday, showed that 72% of respondents feel optimistic about their investment goals over the next five years. Given the recent record rally in stocks, some investors may be disappointed as more muted stock returns come back into play. 

Axater sees opportunities in overseas stocks, whose economies aren't as far along in their recoveries as the U.S. is.

Watch More with TheStreet:

• Uncle Sam Wants His Piece of Your Bitcoin
• These Big Technology Names Are Part of an Impact Investing ETF
• Here Is One Major Factor to Watch in the Markets in 2018
• Forget Bitcoin: Check Out 5 of the Weirdest Cryptocurrencies