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Market-capitalization-weighted index
- The S&P 500 is a market-capitalization-weighted index, meaning that larger companies account for a bigger portion of the index. It tracks around 80% of total U.S. market capitalization.
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How is the S&P 500 market cap calculated?
Is the S&P 500 a float-adjusted index?
Is the S&P 500 a good index?
Is the S&P 500 a value-weighted index?
The S&P 500 has a market capitalization of $42.493 trillion dollars. The total market cap is calculated by summing the market capitalization of every company in the index. Each company's calculated market cap is based on the outstanding float share count.
- How The S&P 500 Works
- How The S&P 500 Is Calculated
- Stocks Removed from The S&P 500
- The Bottom Line
First, the etymology of the term: S&P stands for Standard and Poor’s. Henry Poor was a 19th-century financial analyst who compiled an annual book that listed publicly held railroad companies. His publication merged with those of the StandardStatistics Company in 1941. And 500is the number of stocks that comprise the index. That’s it. The index incl...
Unlike the Dow, which you calculate by just adding up the prices of the component stocks and multiplying by a constant, the S&P 500 is more complex. Several factors influence the index's value besides a company's share price. Instead of adding the constituents' stock prices, the S&P 500 adds the companies’ float-adjusted market capitalization. Also...
With so many components and such stringent criteria, the S&P 500 is dynamic. S&P Dow Jones Indices, the subsidiaryof S&P Global that determines the components of the index, has little patience for slackers. Case in point: United States Steel (X), one of the stalwarts of the 20th-century industry, was listed on the S&P 500 since its inception. In fa...
For the most part, the S&P 500 doesn’t convey information that differs drastically from comparable indices (or vice versa). It broadly matches the more exclusive Dow and the more inclusive Russell 1000. Even so, the S&P 500 represents a happy medium of sorts: comprehensive enough to indicate the relative strength or weakness of the larger economy b...
Sep 22, 2023 · The S&P 500 Index, or Standard & Poor's 500 Index, is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. The index actually has 503 components...
- Will Kenton
- 1 min
Jul 9, 2023 · The S&P 500 covers most areas of the U.S. market, encompassing roughly 80% of the available market cap. How the S&P 500 Index Is Calculated. The S&P 500 Index is a free float-adjusted...
4 days ago · The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities. The index includes 500 leading companies and covers approximately 80% of available market capitalization. Documents. Factsheet. Methodology. Additional Info. At a Glance: SPIVA After-Tax Scorecard. S&P 500® The Gauge of the U.S. Large-Cap Market.
Aug 9, 2023 · The S&P 500 is weighted by market capitalization, so each constituent’s share in the overall index is based on the total market value of all its outstanding shares.
Jan 19, 2024 · The S&P 500 is a stock market index that measures the performance of about 500 companies in the U.S. It includes companies across 11 sectors to offer a picture of the health of the U.S....
