• The S&P 500 index includes the top 500 US public companies, with a focus on market capitalization.

  • The S&P 500 was launched in 1957 by Standard and Poor’s.
  • The S&P is a floating point index, which means that the market capitalization of companies in the index is governed by the number of shares available for public trading.
  • Due to its depth and diversity, the S&P 500 is widely considered one of the best indicators of large US stocks and even the entire stock market.
  • You can’t directly invest in the S&P 500 because it’s an index, but you can invest in one of the many funds that use it as a benchmark by tracking its composition and performance.