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May 10, 2024 · Stocks; stocks to buy; News Analysts' Top S&P 500 Stocks to Buy Now. Amazon, Nvidia and Microsoft top the list of stocks scoring rare Strong Buy consensus ratings. Some of the other names might ...
Mar 31, 2024 · Along with Newmont Corporation (NYSE:NEM), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Biogen Inc. (NASDAQ:BIIB), is a highly rated S&P 500 stock by analysts. 11. Aptiv PLC (NYSE: APTV) Aptiv ...
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May 10, 2024 · Bank of America recently compiled a list of their best stocks to buy now. The S&P 500 followed up a strong 2023 performance with another quarter of solid gains to kick off 2024.
- Wayne Duggan
- Investing Expert Writer
- Do I need a broker to buy stocks?You need a broker to buy stocks. A broker is a licensed professional who can buy and sell stocks on your behalf. It’s important to research and com...
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- How much should I invest in stocks?How much to invest in stocks depends entirely on your personal financial goals and risk tolerance. A common rule of thumb is to invest between 5% a...
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- How do I pick the right stock?The key to successful stock picking is simply to buy low and sell high. However, there are many ways to accomplish this goal. One way is to anticip...
- Overview
- How are Stocks Selected for the S&P 500?
- Top Sectors in the S&P 500
- Top 25 Companies by Index Weight
- Why Are the S&P 500's Top 25 Stocks Important?
- How Do I Invest in the S&P 500 Index?
- Advantages and Disadvantages of Investing in the S&P 500 Index
- The Bottom Line
The S&P 500—the Standard & Poor's 500 Index—is considered to be one of the best measures of U.S. stock market performance, tracking 500 of the largest and most stable publicly traded companies in the country. The top 25 stocks in the
by weight represent the largest, most influential companies in the index. The index is
, giving more significance to companies with larger market values.
The S&P 500 is one of the best measures of U.S. stock market performance and the health of the economy more broadly.
The index tracks 500 of the largest and most stable publicly traded companies.
The S&P 500 is weighted by market capitalization, which means larger companies have more influence over the performance of the index.
Be a U.S.-based company and trade on a major U.S. exchange
Have a market cap of $15.8 billion or more and a float-adjusted market cap of at least 50% of the index's total company-level minimum market capitalization threshold
in the most recent quarter, along with the past four consecutive quarters
Have a float-adjusted liquidity ratio of 0.75 or greater
Have traded a minimum of 250,000 shares in the previous six months before evaluation
The S&P 500 reconstitutes each June. Companies removed from the index are not replaced until the next annual reconstitution.
The table below lists the S&P 500's top sectors by weighting as of Feb. 20, 2024. The information technology, financials, healthcare, and consumer discretionary sectors carry a cumulative weight of 66%. Meanwhile, the least weighted sectors include utilities, materials, and real estate, with a combined weight of just 6.8%.
Below are the top 25 companies by index weight. The S&P Global website doesn't disclose constituent weights, but we can use the S&P 500's proxy
, the SPDR S&P 500 ETF Trust (
), to cite index weights. Although the ETF's holdings differ slightly from the underlying benchmark, they closely replicate its weights.
February saw some changes to the top 25. Most notable was Tesla’s (
) further decline from number nine, following a
that pointed to slowing demand for its cars. Furthermore, Adobe (
Analyzing the top 25 stocks of the S&P 500 by index weight sheds light on the health of the stock market and broader economy. Since these companies make up a significant part of the index, they reflect the performance of key sectors, major companies, and the benchmark itself. February saw continued gains in tech giants like Microsoft, Apple, Nvidia...
There are several options when considering an investment in the S&P 500, spanning a wide range of risk tolerances and investment styles.
—like the SPDR S&P 500 ETF Trust (
), iShares Core S&P 500 ETF (
), and Vanguard S&P 500 ETF (
Investing in the S&P 500 Index offers key advantages, such as exposure to 500 of the largest U.S. companies, providing a diversified portfolio in a single investment. This diversity typically reduces risk compared to investing in individual stocks. Additionally, the historical performance of the S&P 500 has shown consistent long-term growth, making it a favored choice for investors
with a long-term horizon who can wait out market volatility.
The S&P 500 weights constituent companies by market cap, meaning larger firms carry significantly more weight than those with small market values. As a result, tech giants such as Apple, Microsoft, Nvidia, and Amazon greatly influence the index's performance. Investors closely follow the S&P 500's top 25 stocks by index weighting to gauge the health of the stock market and the broader U.S. economy.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our
A list of all the stocks in the S&P 500 stock index, which is an index of the top 500 biggest companies listed on stock exchanges in the United States. There are a total of 500 companies but more than 500 stock tickers because several companies have more than one stock symbol.
Oct 1, 2023 · The S&P 500 is one of the most popular indexes in the financial space, representing about 500 of the largest companies listed on U.S. stock exchanges.; To be included, companies must meet various ...
