The Standard and Poor’s 500 (S&P 500) is a major U.S. stock index, tracking the performance of 500 of the largest companies listed on the U.S. stock exchange. Covering roughly 80 % of the total market cap of U.S. public companies, it had a total market value of over 43 trillion $ as of January 2024.

To be included in the index, companies must meet stringent criteria, such as a minimum market cap of 14.5 billion $ and consistent profitability over the most recent four quarters.

The S&P 500 is market-cap weighted, meaning larger companies have a more significant impact on the index’s movements. For example, giants like Apple and Microsoft have larger weightings compared to smaller firms. This structure reflects not only the size of the companies but also their influence on the broader market.

What’s in the fund? (Top 5)
1. Apple (6.87 %)
2. Microsoft (6.73 %)
3. Nvidia (6.16 %)
4. Amazon (3.62 %)
5. Meta (2.40 %)

Technology is the largest sector in the index, making up 28.2 %, followed by healthcare and financials. These top 10 companies represent a diverse range of industries, yet the index is heavily influenced by tech, which has driven much of its recent growth.

#traderepublic #SP500 #stockmarket #etf

Source:
TR Internal Data
S&P Global, S&P 500 Overview

Disclaimer: This is not financial advice. Investments involve risk. Past performance is not a reliable indicator of future results.