Because the S&P 500 consists of a broad basket of stocks without too many small or obscure companies, it contains the companies the most widely owned by individual investors. You may be wondering why the S&P 500 is considered so useful as a market and economic indicator. Berkshire Hathaway Class B (NYSE:BRK.B)ĭata source: Dow Jones S&P Indices.This list and its sequence can, and probably will, change over time. With that in mind, here’s a look at the 10 largest companies of the S&P 500 index as of March 2021. But because the S&P 500 is weighted by market cap, its performance is mostly driven by the performances of the stocks of the largest companies. Obviously, it wouldn’t be practical to list all of the S&P 500 companies here. There’s a difference in numbers here because a few S&P 500 component companies issue more than one class of stock - for example, Alphabet Class C (NASDAQ:GOOG) and Alphabet Class A (NASDAQ:GOOGL) stock are both included in the S&P 500 index. The S&P 500 index is composed of 505 stocks issued by 500 different companies. Which companies are in the S&P 500 index? The value of the S&P 500 index fluctuates continuously throughout the trading day, based on the weighted performance market data of its underlying components. Several of the largest companies in the index have market caps in excess of $1 trillion, and they are more than 200 times larger than the smallest S&P 500 components, which have market caps between $6 billion and $7 billion. One key point to know is that although these are 500 large companies, there’s a wide range. Massive companies such as Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) have a greater impact on the S&P 500 index than relatively smaller companies like Macy’s (NYSE:M) and Harley-Davidson (NYSE:HOG). Each listed company doesn’t simply represent 1/500th of the index. The S&P 500 index is weighted by market capitalization (share price times number of shares outstanding), which means that a company's valuation determines how much influence it has over the index's performance. In this context, the S&P 500 is a common benchmark against which portfolio performance can be evaluated. stocks are performing overall.įrom another angle, the S&P 500, as an index, is a statistical measure of the performance of America’s 500 largest stocks. It is generally considered the best indicator of how U.S. The S&P 500 (also known as the Standard & Poor's 500), a registered trademark of the joint venture S&P Dow Jones Indices, is a stock index that consists of the 500 largest companies in the U.S. With that in mind, here’s what all investors should know about what the S&P 500 index is, how it works, how you can invest in it, and why doing so could be a smart move for you. stock indexes, none is more highly regarded as a barometer of the overall stock market’s performance and an indicator of how large corporations are performing than the S&P 500 index.
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