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The S&P 500Known for providing a snapshot of the US economy, the S&P 500 is a stock market index composed of 500 large US companies across a variety of industries, including telecommunications, technology, and financial services. Created in 1957 by financial data firm Standard & Poor's (now S&P Global), the index represents roughly 80% of the US stock market's value. The companies in the S&P 500 are chosen by a selection committee with strict criteria: They must be profitable for the four most recent quarters, have a market capitalization above $22.7B, and more. Each company in the index is weighted by its market capitalization, so companies with higher market caps have a greater impact on the index. The S&P 500 is a list of stocks, not an actual security. However, investors can buy into financial vehicles like index funds that track the S&P 500's performance, giving them exposure to the index with relatively low long-term risk and minimal management.Explore The S&P 500

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S&P Global, the company that makes the S&P 500, is listed on the S&P 500When the S&P 500 index was released in 1957, it was helpful for investors, but not necessarily profitable. S&P Global now makes more than $1B a year just from selling its index data. Alongside its other services, like credit ratings, S&P Global makes more than $14B a year. NPR The Dow Jones Industrial Average vs the S&P 500: Which one is a better representation of the economy?The Dow and S&P 500 are both indices meant to provide a broad representation of the economy. The Dow has 30 companies and is weighted by share price, while the S&P 500 has 500 different companies weighted by market capitalization. Since the indices are so different, investors don't always agree on which index is a better representation of the economy—though the two move in the same direction more than 90% of the time. TheStreet Why some say the S&P 500 has effectively become an AI fundThe S&P 500 is a market-cap-weighted index, which means companies with larger market capitalizations have a larger impact on the index's overall performance. Many of the top companies in the index are currently tech companies—including Nvidia, Microsoft, Alphabet, and Apple—that all have large investments in artificial intelligence. As a result, some analysts are concerned that the index is overly exposed to risky AI investments. CNBC Some argue that the S&P 500 is actually an actively managed indexSome critics of the S&P 500's selection process argue that human involvement makes it an actively managed index. S&P Global maintains that while a human selects the stocks in the index, those decisions are not made with the intent of maximizing performance, but rather, to provide a snapshot of the largest companies across different industries. UChicago The S&P 500 is composed of 500 companies, but has more than 500 total listingsSince some large companies have dual-class stock structures (like Alphabet and Fox Corporation), there are multiple listings on the S&P 500 for the same company. S&P Global has banned and then reversed bans on companies with dual-class structures multiple times since first allowing dual-class stocks in 2014. CIO In late 2025, the top 10 companies in the S&P 500 made up more than 40% of the index's total valueThis raised concerns for investors about the index's risk exposure. As many large tech companies continued posting record highs, analysts argued that the top-heavy index was becoming less representative of the economy as a whole. Before the S&P 500 launched in 1957, Standard and Poor's had a daily index with just 90 companiesUnlike previous indices from S&P, the S&P 500 could be computed in real time using computer technology that tracked stock tickers across stock exchanges. This innovation is partly what led to 500 companies being listed on the index, a huge increase from the 90 companies in S&P's flagship index when the company had to do all the analysis by hand. Yahoo Finance See a timeline of S&P Global's history—the company behind the S&P 500From the 1941 merger of Standard Statistics and Poor's Publishing to the creation of the S&P 500 in 1957, the company that created the famous index has long been a leader in financial intelligence. S&P Global Read how Vanguard's founder used the S&P 500 to revolutionize retail investingJohn Bogle, the founder of The Vanguard Group, created a fund that tracked the S&P 500 in 1976. That fund created an unprecedented opportunity for individual retail investors, brought down fees across the board, and popularized the belief that passive, low-cost index fund investments would outperform actively managed portfolios long-term. Wharton The S&P 500 selection committee has strict rules around adding a company to the indexWhile the decision to add a company to the index is ultimately up to the selection committee, any prospective company has to meet some criteria to be considered. To join, the company must have been profitable for the last four quarters, must have a market capitalization exceeding $22.7B, and meet certain requirements around tradeable stock availability (or float). Charles Schwab Investors rely on the S&P 500 as a benchmark for the state of the economySince the index represents a broad range of diverse industries, it's become a proxy for the market itself and a common benchmark for investors to compare returns and performance patterns against. Generally speaking, when someone says a stock is under- or out-performing the market, that actually means under- or out-performing the S&P 500. Investopedia Watch how the S&P 500 is actually calculatedAfter accounting for each company's float-adjusted market capitalization (a metric that combines the price of a company's stock, the total number of shares, and the stock's float, which means how many shares are actually available), the S&P 500 formula uses a divisor to create the index number. However, what the divisor is and what it represents are secrets. Financial Times The S&P 500, managed by the same company, is another major stock indexAlso run by S&P Dow Jones Indices, the S&P 500 tracks 500 large US firms using market-value weighting. Many analysts view it as a more accurate gauge of the American economy. SP Global How the S&P 500 performed in the first 100 days of each modern US presidential termThe S&P 500 was up 5.3% during President Donald Trump's first 100 days in office during his first term as president, and down 7.1% during the first 100 days of his second term. Visual Capitalist The S&P 500 has an average intra-year drawdown of -16%In a given year, the value of the S&P 500 can significantly fluctuate. An intra-year drawdown is the most significant difference between the index's peak and lowest point. Creative Planning The S&P 500 yields a roughly 10.5% average annual returnTthe factors that go into that calculation are multifaceted—from how inflation impacts it to the stocks themselves. During periods of high inflation, stock performance can be stunted by investor concerns, for instance. The average return also varies based on whether dividends are included. SmartAsset Read about the evolution of the S&P 500 and its recession recoverySince the S&P 500 is considered a bellwether index (meaning it represents the health of the US economy), its value is important for investors in both bull and bear markets. The S&P 500 has been impacted by recessions and downturns, from the 1970s oil crisis to the dot-com crash of the early 2000s. Investopedia S&P 500 stocks that have increased their dividends for 25 consecutive years are called 'dividend aristocrats' Dividend aristocrats are considered the best of the best on the S&P 500—all with market capitalizations above $3B, more than $5M in daily trading volume, and consecutive dividend growth for a minimum of 25 years. Some examples of dividend aristocrats are Coca-Cola, Procter & Gamble, and Walmart. US News & World Report Read about the 'gatekeeper' of the stock market, former index chair at S&P GlobalDavid Blitzer, the former index chair at S&P Global, earned the nickname "gatekeeper" of the stock market after helping decide which companies made it into the S&P 500 for 24 years. Blitzer became a legend in the world of indexing and has a reputation for being even-tempered and always wearing a bow tie. Quartz A 'large-cap' company has a market capitalization of more than $10BThe S&P 500 is primarily composed of large-cap companies. The idea is that the index provides a big-picture view of the economy by assessing the performance of many of the largest public companies across different industries. The median market capitalization of companies listed on the S&P 500 is around $40B. Investopedia Listen to the methods and strategy of the secretive S&P 500 selection committeeStocks are added to the S&P 500 by a secret selection committee that meets regularly to assess which companies can remain in the index, which companies need to be added, and which companies no longer meet the criteria. The members of the committee used to be public, but S&P Global decided to keep its members confidential after companies sent packages, letters, and gifts to try to make it into the index. Spotify Some institutional investors are growing wary of private equity, as certain investments underperform traditional market indicesPrivate equity often attracts investors who can afford to tie up capital for long periods of time in exchange for higher returns than traditional investments. For many years, private equity at least tracked with the S&P 500 in terms of returns to investors, but in 2024 and 2025, it underperformed and posted declining returns. Center for Economic and Policy Research Learn how to invest in index funds with this step-by-step guideThere are a few questions experts suggest answering before investing in an index fund, such as your goals for your investment and the index you want to track. This article walks you through those questions to help you get started. NerdWallet 90 percent of active managers of large public funds underperformHigh fees tend to eat away at whatever edge professional managers accrue, resulting in most such funds performing worse than their underlying benchmark indexes like the S&P 500. Ancap Financial Critics argue the Dow no longer reflects the modern economyWith only 30 companies and a price-weighted formula, skeptics say the DJIA underrepresents vast sectors of the market. They claim it is outdated, though its close correlation with the broader S&P 500 keeps it relevant. Entrepreneur Stock indices track markets through groupings of companiesA stock index measures the performance of selected companies, offering a snapshot of market trends. Examples include the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite. Whyze There are ETFs that track lawmakers' stock purchasesIf you can’t get enough politics in your life, why not invest like a politician? Because members of Congress are required to disclose their stock purchases, you can do just that, and the NANC and KRUZ ETFs make it even easier. NANC, referencing Nancy Pelosi, holds a basket of stocks that Democratic politicians have purchased. KRUZ, referencing Ted Cruz, holds a basket of Republican-held stocks. Financial Times Explore a list of the world’s weirdest and wildest ETFs Whether you’re leaping straight into the future and looking for stocks picked by AI, a sci-fi aficionado who wants to invest in space travel, or a drama enthusiast looking to make money on stock market volatility, the ETF market’s weird corners have something for you. Bankrate The first US ETF was launched in 1993Exchange-traded funds are relatively new inventions, and they’ve grown significantly in popularity during their few decades of existence. They were first created as an alternative to mutual funds. A colorful visualization depicts the entire history of ETFs. Visual Capitalist The SPDR S&P 500 ETF is one of the most highly traded funds on the marketState Street, a popular ETF issuer, is responsible for the SPDR S&P 500 ETF. This fund trades under the SPY ticker, and State Street maintains a web page with key facts and figures on SPY. For instance, its expense ratio is 0.0945%, or $9.45 on an initial $10K investment. State Street Global Advisors An expense ratio represents the cost to own an ETF over the course of the yearFor instance, an expense ratio of 0.5% would add a cost of $50 on an investment of $10K. And while expense ratios have on average decreased in recent years, a particularly hefty fee can still eat into total profits. Bankrate There are monthly dividend ETFs that pay you to hold them Traditional dividend stocks and funds pay out quarterly, or four times a year. A select group of stocks and funds pay out monthly, putting cash in investors’ hands 12 times a year. These monthly dividend funds are popular because their regular payouts can help keep budgets on track. Investopedia Dividends are payments made by a corporation to its shareholdersFrom the Dutch East India Company paying out the first dividends over 400 years ago to the word “dividend’s” ancient Latin roots, Dividend.com has a full explainer of this investing perk and how individuals can earn income while holding dividend-paying stocks or ETFs. Dividend.com See the top 100 ETFs by trading volumeThis list grabs the top 100 by trading volume, or the average number of shares that have traded hands over a 3-month period. Top of the list is a semiconductor-focused fund from Direxion, followed by other tech-centric offerings. VettaFi Play a game that reveals if investors with a crystal ball make better tradesThe "crystal ball" game reveals how well you would do trading stocks and bonds if you could see the front page of the Wall Street Journal one day in advance. Elm Wealth What happens when a hedge fund grows too big, too fast?Dmitry Balyasny, who heads what has become one of the top US hedge fund firms, got a crash course in finance as a teenager, when he started trading stocks—and started losing money. Balyasny went on to lose a whole lot more money. But, this time, it wasn’t his to lose. To find out more about his firm’s remarkable comeback, read this article. Institutional Investor One $100 investment in the Medallion Fund skyrockets over timeThe Medallion Fund, the famously secretive quant fund that invests billions of dollars for the partners and employees of a single firm with a legendary track record, has trounced the market for more than three decades. While its results are an extreme outlier, this visualization showcases the power of compound interest. Visual Capitalist The stock market's volatility between 2017 and 2025, visualizedThe CBOE Volatility Index measures expected stock market volatility using the prices of options on the S&P 500. When traders expect large moves in the market, options prices tend to rise as more options are purchased to bet on the direction of the move. Visual Capitalist What a $1K investment in P&G stock 20 years ago would be worth todayIf someone put $1K into P&G stock 20 years ago, it would be worth about $5.2K in 2025, making its annualized return about 8.6%. For context, the S&P 500 has had an annualized return of 10.7% over the same time period. Kiplinger A step-by-step guide for potential retail investorsInstead of purchasing individual stocks and bonds, new investors may want to start in funds that track an index—like the S&P 500—or that hold a group of themed stocks. Bankrate

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