Discover why the S&P 500 is widely regarded as the best single gauge of U.S. large-cap equities and the world's most-tracked index by AUM.
[TRANSCRIPT]
The 500: A Brief Look at an Index Icon
This is the story of the S&P 500®: one of the world’s most iconic and influential stock market benchmarks
But what makes The 500® so special?
Quite simply, the S&P 500 is widely regarded as the best single gauge of U.S. large-cap equities and it is the world’s most-tracked index by AUM
Investors globally rely on The 500 as a reflection of the U.S. economy, encompassing a diverse range of 11 GICS® sectors including Information Technology, Financials, Energy and Health Care
The constituents of The 500 are some of the most recognized and successful brands in the world
From Apple and Microsoft to Coca-Cola and Johnson & Johnson, the S&P 500 includes companies that touch virtually every aspect of our daily lives
The index is also considerably broad, covering about 80% of the U.S. equity market capitalization
However, its influence extends beyond the U.S. because it covers over 50% of the global equity market as well
That’s why this renowned index is a barometer for global markets and influences investment decisions worldwide
The S&P 500 also has a large, robust trading ecosystem spanning several types of investment products, including futures and options, that helps boost liquidity
For years, the S&P 500 has also been the most-widely used index in fixed indexed annuities and structured products
Many of the largest exchange-traded funds (ETFs) and mutual funds in the world track The 500
Over the past two decades, our SPIVA® Scorecards show that 91.8% of U.S. Large-Cap funds underperformed The 500
For example, the S&P 500 is a common yardstick for measuring the performance of active U.S. large-cap equity funds—and history shows it’s very tough to beat
And with over 65 years of live index history, market participants, academics and economists analyze S&P 500 performance and index constituents to understand how the U.S. market has evolved
The S&P 500 also serves as the basis for other flagship indices such as the S&P 500 Equal Weight Index, S&P 500 Factor Indices and Cboe Volatility Index (VIX®) and underpins some of the latest multi-asset index innovations
To learn more about the S&P 500 and its global impact, visit spglobal.com/spdji/en/landing/investment-themes/the-500
