S&P 500
 S&P 500 from 1970 to 2023 | |
| Foundation | March 4, 1957[1] |
|---|---|
| Operator | S&P Dow Jones Indices[2] |
| Exchanges | |
| Trading symbol |
|
| Constituents | 503[3] |
| Type | Large-cap[2] |
| Market cap | US$67.8 trillion (as of May 29, 2026)[3] |
| Weighting method | Free-float capitalization-weighted[4] |
| Related indices | |
| Website | www |
- Information Technology (37.4%)
- Financials (12.0%)
- Communication Services (9.96%)
- Consumer Discretionary (9.41%)
- Health Care (8.96%)
- Industrials (8.86%)
- Consumer Staples (4.57%)
- Energy (2.97%)
- Utilities (2.17%)
- Materials (1.84%)
- Real Estate (1.84%)
The S&P 500 (Standard and Poor's 500)[12] is a stock market index tracking the stock performance of 500 leading companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices and includes approximately 80% of the total market capitalization of U.S. public companies, with an aggregate market cap of more than $61.1 trillion as of December 31, 2025.[2]
The S&P 500 index is a public float weighted/capitalization-weighted index. As of July 2026, the ten largest companies in the index account for approximately 38% of the market capitalization of the index and are, in order of highest to lowest weighting: Nvidia (7.32%), Apple (7.04%), Alphabet (5.89%, including both class A & C shares), Microsoft (4.50%), Amazon (3.69%), Broadcom (2.65%), Meta Platforms (1.99%), Micron Technology (1.71%), Tesla (1.71%), and Lilly (1.49%).[5] The components that have increased their dividends in 25 consecutive years are known as the S&P 500 Dividend Aristocrats.[13] Companies in the S&P 500 derive a collective 72% of revenues from the United States and 28% from other countries.[14]
The index is one of the factors in the computation of the Conference Board Leading Economic Index, which is used to forecast the direction of the economy.[15] The index is associated with many ticker symbols, including ^GSPC,.[16] INX,[17] and SPX, depending on market or website.[18] The S&P 500 is maintained by S&P Dow Jones Indices, a joint venture majority-owned by S&P Global, and its components are selected by a committee.[4]
Investing in the S&P 500
[edit]Mutual and exchange-traded funds
[edit]Index funds, including mutual funds and exchange-traded funds (ETFs), can replicate, before fees and expenses, the performance of the index by holding the same stocks as the index in the same proportions or by holding derivatives that produce the same return as the index. Index funds that attempt to replicate the performance of the index are as follows:
| Exchange-traded funds - United States | |||
| Ticker symbol | Issuer | Expense ratio | Ref |
|---|---|---|---|
| NYSE Arca: SPY (SPDR S&P 500 ETF Trust) |
State Street Corporation | 0.09% | |
| NYSE Arca: VOO | The Vanguard Group | 0.03% | |
| NYSE Arca: IVV | BlackRock iShares | 0.03% | [5] |
| NYSE Arca: SPYM | State Street Corporation | 0.02% | |
| Mutual funds - United States | |||
| Ticker symbol | Issuer | Expense ratio | Ref |
| Nasdaq: FXAIX | Fidelity Investments | 0.015% | |
| Nasdaq: SWPPX | Charles Schwab Corporation | 0.02% | |
| Nasdaq: VFIAX | The Vanguard Group | 0.04% | |
| Nasdaq: PREIX | T. Rowe Price | 0.19% | |
| Exchange-traded funds - Canada | |||
| Ticker symbol | Issuer | Expense ratio | Ref |
| TSX: VFV | The Vanguard Group | 0.09% | |
| TSX: VSP (CAD-hedged) | The Vanguard Group | 0.09% | |
| TSX: XUS | BlackRock iShares | 0.09% | |
| TSX: XSP (CAD-hedged) | BlackRock iShares | 0.09% | |
| UCITS Exchange-traded funds - Europe | |||
| Ticker symbol | Issuer | Expense ratio | Ref |
| SPY5 | State Street Corporation | 0.03% | |
| VUSA | The Vanguard Group | 0.07% | |
| CSPX | BlackRock iShares | 0.07% | |
The SPDR S&P 500 ETF Trust has the highest average daily volume of all S&P 500 ETFs.
Modified S&P 500 ETFs
[edit]ETFs that invest in all 500 components of the S&P 500 with equal weighting are offered by Invesco (NYSE Arca: RSP; 0.20% expense ratio)[19] and, for European investors, BlackRock iShares (EWSP/EWSA).[20]
ProShares offers ex-sector ETFs; these invest in all stocks in the S&P 500 excluding those of a single industry such as technology (NYSE Arca: SPXT; 0.09% expense ratio)[21] or energy (NYSE Arca: SPXE; 0.09% expense ratio).[22]
Buffer ETFs, which invest in the S&P 500 but limit potential upside in exchange for a preset level of downside protection, are offered by PGIM.
Leveraged ETFs
[edit]Leveraged ETFs attempt to produce a multiple of the daily return of either investing in or shorting the index.
| Leveraged ETFs | ||||
| Ticker symbol | Issuer | Leverage | Expense ratio | Ref |
|---|---|---|---|---|
| NYSE Arca: SPXL | Direxion | 3x long | 0.84% | [23] |
| NYSE Arca: SPXS | Direxion | 3x short | 1.04% | [23] |
| NYSE Arca: UPRO | ProShares | 3x long | 0.89% | [24] |
| NYSE Arca: SSO | ProShares | 2x long | 0.87% | [25] |
Derivatives
[edit]The Chicago Mercantile Exchange (CME), via its Globex Trading System, offers S&P 500 futures contracts. Cboe Global Markets offers options on the S&P 500 as well as on ETFs that track the index.
History
[edit]In 1860, Henry Varnum Poor formed Poor's Publishing, which published an investor's guide to the railroad industry.[26] In 1923, Standard Statistics Company (founded in 1906 as the Standard Statistics Bureau) began rating mortgage bonds[26] and developed its first stock market index consisting of the stocks of 233 U.S. companies, computed weekly.[1] Three years later, it developed a 90-stock index, computed daily.[1] In 1941, Poor's Publishing merged with Standard Statistics Company to form Standard & Poor's.[26][27]
On Monday, March 4, 1957, the index was expanded to its current extent of 500 companies and was renamed the S&P 500 Stock Composite Index.[1] In 1962, Ultronic Systems became the compiler of the S&P indices including the S&P 500 Stock Composite Index, the 425 Stock Industrial Index, the 50 Stock Utility Index, and the 25 Stock Rail Index.[28] On August 31, 1976, The Vanguard Group offered the first mutual fund to retail investors that tracked the index.[1] On April 21, 1982, the Chicago Mercantile Exchange began trading futures based on the index.[1] On July 1, 1983, the Chicago Board Options Exchange began trading options based on the index.[1] Beginning in 1986, the index value was updated every 15 seconds, or 1,559 times per trading day, with price updates disseminated by Reuters. Prior to this, it had been updated once every minute.[29]
On January 22, 1993, the Standard & Poor's Depositary Receipts exchange-traded fund issued by State Street Corporation began trading.[1] On September 9, 1997, CME Group introduced the S&P E-mini futures contract.[1] In 2005, the index transitioned to a public float-adjusted capitalization-weighting.[30] Friday, September 17, 2021, was the final trading date for the original SP big contract which began trading in 1982.[31]
Selection criteria
[edit]Like other indices managed by S&P Dow Jones Indices, but unlike indices such as the Russell 1000 Index which are strictly rule-based, the components of the S&P 500 are selected by a committee. When considering the eligibility of a new addition, the committee assesses the company's merit using the following primary criteria:[4]
- Market capitalization - Market capitalization must be greater than or equal to US$22.7 billion for addition to the S&P 500 (not for continued eligibility).[32]
- Market liquidity and public float – Annual dollar value traded to float-adjusted market capitalization is greater than 0.75.[33]
- Volume – Minimum monthly trading volume of 250,000 shares in each of the six months leading up to the evaluation date
- Stock exchange – Must be publicly listed on the New York Stock Exchange (including NYSE Arca or NYSE American), Nasdaq (Nasdaq Global Select Market, Nasdaq Select Market or the Nasdaq Capital Market) or Cboe (Cboe BZX, Cboe BYX, Cboe EDGA or Cboe EDGX).
- Domicile – The company must have its primary listing on a U.S. exchange.[34]
- Profitability – Net income from continuing operations must be positive for the most recent quarter, and the sum of the most recent four consecutive quarters.[4]
- Seasoning period – Newly-public companies (via IPO or via SPAC merger, but excepting corporate spin-offs of existing members) are not eligible until they have traded for at least 12 months.[4]
- Sector balance – The weights in the index of different market sectors (based on grouping members together by their respective GICS sector classifications) would ideally approximate the weights of those sectors among the constituents of the S&P Total Market Index who fulfil the S&P 500's market capitalization criterion.[4]
- Securities that are ineligible for inclusion in the index are limited partnerships, master limited partnerships and their investment trust units, OTC Bulletin Board issues, closed-end funds, exchange-traded funds, Exchange-traded notes, royalty trusts, tracking stocks, preferred stock, unit trusts, equity warrants, convertible bonds, investment trusts, American depositary receipts, and American depositary shares.[4]
A stock may rise in value when it is added to the index since index funds must purchase that stock to continue tracking the index.[35][36]
A study published by the National Bureau of Economic Research in October 2021 alleged that companies' purchases of ratings services from S&P Global appear to improve their chance of entering the S&P 500, even if they are not the best fit per the rules.[37][38]
Performance
[edit]
Stock buyback
Dividends
Since its inception in 1926, the index's compound annual growth rate—including dividends—has been approximately 9.8% (6% after inflation), with the standard deviation of the return, calculated on a monthly basis, over the same time period being 20.81%. While the index has declined in several years by over 30%,[39] it has posted annual increases 70% of the time,[40] with 5% of all trading days resulting in record highs.[41]
Returns are generally quoted as price returns (excluding returns from dividends). However, they can also be quoted as total return, which includes returns from dividends and the reinvestment thereof, and "net total return", which reflects the effects of dividend reinvestment after the deduction of withholding tax.[2]
| Year | Change in Index |
Total Annual Return, including dividends |
Annualized Return over | ||||
|---|---|---|---|---|---|---|---|
| 5 years | 10 years | 15 years | 20 years | 25 years | |||
| 1961 | 23.13% | - | - | - | - | - | - |
| 1962 | −11.81% | - | - | - | - | - | - |
| 1963 | 18.89% | - | - | - | - | - | - |
| 1964 | 12.97% | - | - | - | - | - | - |
| 1965 | 9.06% | - | - | - | - | - | - |
| 1966 | −13.09% | - | - | - | - | - | - |
| 1967 | 20.09% | - | - | - | - | - | - |
| 1968 | 7.66% | - | - | - | - | - | - |
| 1969 | −11.36% | - | - | - | - | - | - |
| 1970 | 0.10% | 4.01% | - | - | - | - | - |
| 1971 | 10.79% | 14.31% | - | - | - | - | - |
| 1972 | 15.63% | 18.98% | - | - | - | - | - |
| 1973 | −17.37% | −14.66% | - | - | - | - | - |
| 1974 | −29.72% | −26.47% | −2.35% | - | - | - | - |
| 1975 | 31.55% | 37.20% | 3.21% | - | - | - | - |
| 1976 | 19.15% | 23.84% | 4.87% | - | - | - | - |
| 1977 | −11.50% | −7.18% | −0.21% | - | - | - | - |
| 1978 | 1.06% | 6.56% | 4.32% | - | - | - | - |
| 1979 | 12.31% | 18.44% | 14.76% | 5.86% | - | - | - |
| 1980 | 25.77% | 32.50% | 13.96% | 8.45% | - | - | - |
| 1981 | −9.73% | −4.92% | 8.10% | 6.47% | - | - | - |
| 1982 | 14.76% | 21.55% | 14.09% | 6.70% | - | - | - |
| 1983 | 17.27% | 22.56% | 17.32% | 10.63% | - | - | - |
| 1984 | 1.40% | 6.27% | 14.81% | 14.78% | 8.76% | - | - |
| 1985 | 26.33% | 31.73% | 14.67% | 14.32% | 10.49% | - | - |
| 1986 | 14.62% | 18.67% | 19.87% | 13.83% | 10.76% | - | - |
| 1987 | 2.03% | 5.25% | 16.47% | 15.27% | 9.86% | - | - |
| 1988 | 12.40% | 16.61% | 15.31% | 16.31% | 12.17% | - | - |
| 1989 | 27.25% | 31.69% | 20.37% | 17.55% | 16.61% | 11.55% | - |
| 1990 | −6.56% | −3.10% | 13.20% | 13.93% | 13.94% | 11.16% | - |
| 1991 | 26.31% | 30.47% | 15.36% | 17.59% | 14.34% | 11.90% | - |
| 1992 | 4.46% | 7.62% | 15.88% | 16.17% | 15.47% | 11.34% | - |
| 1993 | 7.06% | 10.08% | 14.55% | 14.93% | 15.72% | 12.76% | - |
| 1994 | −1.54% | 1.32% | 8.70% | 14.38% | 14.52% | 14.58% | 10.98% |
| 1995 | 34.11% | 37.58% | 16.59% | 14.88% | 14.81% | 14.60% | 12.22% |
| 1996 | 20.26% | 22.96% | 15.22% | 15.29% | 16.80% | 14.56% | 12.55% |
| 1997 | 31.01% | 33.36% | 20.27% | 18.05% | 17.52% | 16.65% | 13.07% |
| 1998 | 26.67% | 28.58% | 24.06% | 19.21% | 17.90% | 17.75% | 14.94% |
| 1999 | 19.53% | 21.04% | 28.56% | 18.21% | 18.93% | 17.88% | 17.25% |
| 2000 | −10.14% | −9.10% | 18.33% | 17.46% | 16.02% | 15.68% | 15.34% |
| 2001 | −13.04% | −11.89% | 10.70% | 12.94% | 13.74% | 15.24% | 13.78% |
| 2002 | −23.37% | −22.10% | −0.59% | 9.34% | 11.48% | 12.71% | 12.98% |
| 2003 | 26.38% | 28.68% | −0.57% | 11.07% | 12.22% | 12.98% | 13.84% |
| 2004 | 8.99% | 10.88% | −2.30% | 12.07% | 10.94% | 13.22% | 13.54% |
| 2005 | 3.00% | 4.91% | 0.54% | 9.07% | 11.52% | 11.94% | 12.48% |
| 2006 | 13.62% | 15.79% | 6.19% | 8.42% | 10.64% | 11.80% | 13.37% |
| 2007 | 3.53% | 5.49% | 12.83% | 5.91% | 10.49% | 11.82% | 12.73% |
| 2008 | −38.49% | −37.00% | −2.19% | −1.38% | 6.46% | 8.43% | 9.77% |
| 2009 | 23.45% | 26.46% | 0.41% | −0.95% | 8.04% | 8.21% | 10.54% |
| 2010 | 12.78% | 15.06% | 2.29% | 1.41% | 6.76% | 9.14% | 9.94% |
| 2011 | −0.00% | 2.11% | −0.25% | 2.92% | 5.45% | 7.81% | 9.28% |
| 2012 | 13.41% | 16.00% | 1.66% | 7.10% | 4.47% | 8.22% | 9.71% |
| 2013 | 29.60% | 32.39% | 17.94% | 7.40% | 4.68% | 9.22% | 10.26% |
| 2014 | 11.39% | 13.69% | 15.45% | 7.67% | 4.24% | 9.85% | 9.62% |
| 2015 | −0.73% | 1.38% | 12.57% | 7.30% | 5.00% | 8.19% | 9.82% |
| 2016 | 9.54% | 11.96% | 14.66% | 6.94% | 6.69% | 7.68% | 9.15% |
| 2017 | 19.42% | 21.83% | 15.79% | 8.49% | 9.92% | 7.19% | 9.69% |
| 2018 | −6.24% | −4.38% | 8.49% | 13.12% | 7.77% | 5.62% | 9.07% |
| 2019 | 28.88% | 31.49% | 11.70% | 13.56% | 9.00% | 6.06% | 10.22% |
| 2020 | 16.26% | 18.40% | 15.22% | 13.89% | 9.88% | 7.47% | 9.56% |
| 2021 | 26.89% | 28.71% | 18.48% | 16.55% | 10.66% | 9.52% | 9.76% |
| 2022 | −19.44% | −18.11% | 9.43% | 12.56% | 8.80% | 9.80% | 7.64% |
| 2023 | 24.23% | 26.29% | 15.69% | 12.03% | 13.97% | 9.69% | 7.56% |
| 2024 | 23.31% | 25.02% | 14.53% | 13.10% | 13.88% | 10.35% | 7.70% |
| 2025 | 16.39% | 17.88% | 14.43% | 14.82% | 14.07% | 11.00% | 8.82% |
| High | 34.11% | 37.58% | 28.56% | 19.21% | 18.93% | 17.88% | 17.25% |
| Low | −38.49% | −37.00% | −2.35% | −1.38% | 4.24% | 5.62% | 7.56% |
| Median | 12.59% | 15.90% | 14.26% | 12.94% | 10.85% | 11.16% | 10.24% |
| Year | Change in Index |
Total Annual Return, including dividends |
Annualized Return over | ||||
| 5 years | 10 years | 15 years | 20 years | 25 years | |||
See also
[edit]References
[edit]- 1 2 3 4 5 6 7 8 9 Valetkevitch, Caroline (May 6, 2013). "Key dates and milestones in the S&P 500's history". Reuters.
- 1 2 3 4 "S&P 500®". S&P Global.
- 1 2 "S&P 500®". S&P Dow Jones Indices. S&P Global.
- 1 2 3 4 5 6 7 "S&P U.S. Indices Methodology" (PDF). S&P Global. June 2026.
- 1 2 3 "iShares Core S&P 500 ETF". iShares. BlackRock.
- ↑ "S&P 500 INDEX (^SPX)". Choose Max (time period), "Historical prices", "monthly": Yahoo Finance.
- ↑ "S&P 500 (^GSPC)". Yahoo!Finance.
- ↑ "CPI Inflation Data". InflationData.com.
- ↑ "National Debt Data". US Treasury.gov.
- ↑ "GDP". BEA, US Department of Commerce.
- ↑ "Gold". USA Gold, Daily Gold Price History.
- ↑ "S&P 500". Encyclopædia Britannica.
- ↑ S&P Dividend Aristocrats Indices Methodology (PDF) (Report). S&P Dow Jones Indices. September 1, 2023. p. 4. Archived (PDF) from the original on November 23, 2023.
- ↑ "How tariffs are forecast to affect US stocks". Goldman Sachs. February 7, 2025.
- ↑ "Global Business Cycle Indicators". The Conference Board.
- ↑ "Yahoo! Finance: ^GSPC". Yahoo! Finance.
- ↑ "Google Finance: .INX". Google Finance.
- ↑ "S&P 500 Index Quote". MarketWatch.
- ↑ "Invesco S&P 500® Equal Weight ETF". Invesco.
- ↑ "iShares S&P 500 Equal Weight UCITS ETF". iShares.
- ↑ "S&P 500 Ex-Technology ETF". ProShares.
- ↑ "S&P 500 Ex-Energy ETF". ProShares.
- 1 2 "SPXL SPXS". Direxion.
- ↑ "UltraPro S&P500". ProShares.
- ↑ "Ultra S&P500". ProShares.
- 1 2 3 "Our History". S&P Global.
- ↑ Riggs, Thomas, ed. (2015). "Standard & Poor's". Gale Encyclopedia of U.S. Economic History. Vol. 3 (2nd ed.). Gale. p. 1256. Gale CX3611000855.
- ↑ "Vast stock wire network being extended to coast". The New York Times. June 4, 1962.
- ↑ Duggan, Wayne. "This Day In Market History, June 13: S&P 500 Quotes Delivered Every 15 Seconds - SPDR S&P 500 (ARCA:SPY)". Benzinga.
- ↑ "Equity Index Underlying Supplement". United States Securities and Exchange Commission. March 22, 2012.
- ↑ "Termination of Trading, Conversion and Delisting of Standard-Size Standard and Poor's 500 Stock Price Index Futures and Options on Standard and Poor's 500 Stock Price Index Futures Contracts" (PDF). CME Group. August 6, 2021.
- ↑ "S&P Dow Jones Indices Announces Update to S&P Composite 1500 Market Cap Guidelines" (PDF). S&P Global (Press release). July 1, 2025.
- ↑ "S&P Dow Jones Indices Announces Update to S&P Composite 1500 Market Cap Guidelines" (PDF). S&P Global. January 4, 2022.
- ↑ "S&P 500 Index". Corporate Finance Institute.
- ↑ Fitzgerald, Jay. "Stock Price Reactions to Index Inclusion". National Bureau of Economic Research.
- ↑ Krantz, Matt (July 5, 2013). "Do stocks soar if they get into the S&P 500?". USA TODAY.
- ↑ Kun Li, Xin; Wei, Shang-Jin (October 2021). "Is Stock Index Membership for Sale?". National Bureau of Economic Research.
- ↑ Lee, Justina (October 12, 2021). "S&P 500 Membership May Be 'For Sale,' NBER Research Suggests". Bloomberg News.
- ↑ Santoli, Michael (June 18, 2017). "The S&P 500 has already met its average return for a full year, but don't expect it to stay here". CNBC.
- ↑ Carlozo, Lou (October 2, 2018). "Why Investors Love the S&P 500". U.S. News & World Report.
- ↑ Carlson, Ben (February 27, 2020). "Worried about the stock market? Resist the urge to panic". Fortune.