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S&P 500

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S&P 500
S&P 500 from 1970 to 2023
FoundationMarch 4, 1957; 69 years ago (1957-03-04)[1]
OperatorS&P Dow Jones Indices[2]
Exchanges
Trading symbol
  • ^GSPC
  • $SPX
  • SPX
  • .SPX
  • .INX
Constituents503[3]
TypeLarge-cap[2]
Market capUS$67.8 trillion
(as of May 29, 2026)[3]
Weighting methodFree-float capitalization-weighted[4]
Related indices
Websitewww.spglobal.com/spdji/en/indices/equity/sp-500/
Industry classification of the components of the index per the Global Industry Classification Standard as of July 1, 2026[5]
  1. Information Technology (37.4%)
  2. Financials (12.0%)
  3. Communication Services (9.96%)
  4. Consumer Discretionary (9.41%)
  5. Health Care (8.96%)
  6. Industrials (8.86%)
  7. Consumer Staples (4.57%)
  8. Energy (2.97%)
  9. Utilities (2.17%)
  10. Materials (1.84%)
  11. Real Estate (1.84%)

The S&P 500 (Standard and Poor's 500)[6] 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. The index is associated with many ticker symbols, including ^GSPC,.[7] INX,[8] and SPX, depending on market or website.[9] The S&P 500 is maintained by S&P Dow Jones Indices, owned 73% by S&P Global and 27% by CME Group, and its components are selected by a committee.[4]

Products linked to the S&P 500 include index funds (exchange-traded funds/ETFs and mutual funds) as well as derivatives (options and futures contracts), which are available for trading in many countries with the goal of replicating the performance of the index. Also available are modified index funds; they replicate the performance of the index with modifications such as the use of covered call strategies, equal weighting, performance buffers, leverage, or they exclude certain sectors, all with the goal of changing the risk/return and yield. The SPDR S&P 500 ETF Trust, with approximately $800 billion in assets, has the highest average daily volume of all S&P 500 ETFs. In total, there was approximately $13 trillion in assets tracking the index as of December 31, 2024.[10]

The component companies which have increased their dividends over 25 consecutive years are known as the S&P 500 Dividend Aristocrats.[11] Companies in the S&P 500 derive a collective 72% of revenues from the United States and 28% from other countries.[12] 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.[13]

History

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In 1860, Henry Varnum Poor published the History of Railroads and Canals in the United States, an reference guide to the railroad industry for investors; in 1868 he published the book's follow-up, Poor's Manual of the Railroads of the United States.[14] In 1923, Standard Statistics Company (founded in 1906 as the Standard Statistics Bureau) began rating mortgage bonds[14] 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 company merged with Standard Statistics Company to form Standard & Poor's.[14][15]

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.[16] 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.[17]

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.[18] Friday, September 17, 2021, was the final trading date for the original SP big contract which began trading in 1982.[19]

Selection criteria

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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]

  1. 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).[20]
  2. Market liquidity and public float – Annual dollar value traded to float-adjusted market capitalization is greater than 0.75.[21]
  3. Volume – Minimum monthly trading volume of 250,000 shares in each of the six months leading up to the evaluation date
  4. 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).
  5. Domicile – The company must have its primary listing on a U.S. exchange.[22]
  6. 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]
  7. 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]
  8. 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]
  9. 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.[23][24]

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.[25][26]

Performance

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S&P 500 Buybacks and Dividends (quarterly)
  Stock buyback
  Dividends
S&P 500 annual returns
S&P 500 annual returns

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%,[27] it has posted annual increases 70% of the time,[28] with 5% of all trading days resulting in record highs.[29]

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]

Show / Hide table
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

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References

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  1. 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.
  2. 1 2 3 4 "S&P 500®". S&P Global.
  3. 1 2 "S&P 500®". S&P Dow Jones Indices. S&P Global.
  4. 1 2 3 4 5 6 7 "S&P U.S. Indices Methodology" (PDF). S&P Global. June 2026.
  5. ↑ "iShares Core S&P 500 ETF". iShares. BlackRock.
  6. ↑ "S&P 500". Encyclopædia Britannica.
  7. ↑ "Yahoo! Finance: ^GSPC". Yahoo! Finance.
  8. ↑ "Google Finance: .INX". Google Finance.
  9. ↑ "S&P 500 Index Quote". MarketWatch.
  10. ↑ "S&P Dow Jones Indices". S&P Global.
  11. ↑ 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.
  12. ↑ "How tariffs are forecast to affect US stocks". Goldman Sachs. February 7, 2025.
  13. ↑ "Global Business Cycle Indicators". The Conference Board.
  14. 1 2 3 "Our History". S&P Global.
  15. ↑ Riggs, Thomas, ed. (2015). "Standard & Poor's". Gale Encyclopedia of U.S. Economic History. Vol. 3 (2nd ed.). Gale. p. 1256. Gale CX3611000855.
  16. ↑ "Vast stock wire network being extended to coast". The New York Times. June 4, 1962.
  17. ↑ Duggan, Wayne. "This Day In Market History, June 13: S&P 500 Quotes Delivered Every 15 Seconds - SPDR S&P 500 (ARCA:SPY)". Benzinga.
  18. ↑ "Equity Index Underlying Supplement". United States Securities and Exchange Commission. March 22, 2012.
  19. ↑ "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.
  20. ↑ "S&P Dow Jones Indices Announces Update to S&P Composite 1500 Market Cap Guidelines" (PDF). S&P Global (Press release). July 1, 2025.
  21. ↑ "S&P Dow Jones Indices Announces Update to S&P Composite 1500 Market Cap Guidelines" (PDF). S&P Global. January 4, 2022.
  22. ↑ "S&P 500 Index". Corporate Finance Institute.
  23. ↑ Fitzgerald, Jay. "Stock Price Reactions to Index Inclusion". National Bureau of Economic Research.
  24. ↑ Krantz, Matt (July 5, 2013). "Do stocks soar if they get into the S&P 500?". USA TODAY.
  25. ↑ Kun Li, Xin; Wei, Shang-Jin (October 2021). "Is Stock Index Membership for Sale?". National Bureau of Economic Research.
  26. ↑ Lee, Justina (October 12, 2021). "S&P 500 Membership May Be 'For Sale,' NBER Research Suggests". Bloomberg News.
  27. ↑ 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.
  28. ↑ Carlozo, Lou (October 2, 2018). "Why Investors Love the S&P 500". U.S. News & World Report.
  29. ↑ Carlson, Ben (February 27, 2020). "Worried about the stock market? Resist the urge to panic". Fortune.
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