What is the S&P 500?

The S&P 500 tracks the share prices of 500 of the largest U.S. public companies, market-cap weighted. It covers about 80% of U.S. stock-market value and is the default benchmark for "the market".

What does "market-cap weighted" mean?

The 500 companies are not treated equally: each one's weight is proportional to its total market value, so the biggest names move the index far more than the smallest. That is why the S&P 500 can rise on a day when most of its members actually fell — the gap market breadth is designed to reveal.

Frequently asked questions

Can I buy the S&P 500 directly?

Not the index itself, but you can buy a low-cost index fund or ETF that holds all 500 companies in the same proportions.

Why can it rise while most stocks fall?

Because it is cap-weighted: the largest companies move the index far more than the smallest, so a few big winners can lift it.

Is the S&P 500 the same as the Dow?

No — the Dow tracks 30 price-weighted companies; the S&P 500 tracks 500 companies weighted by market value, a much broader gauge.

See it on a ticker

Browse all S&P 500 tickers to see this metric applied to individual companies.

Related terms

Educational research only — not investment advice.