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Everyone talks about the “S&P 500”
But what is it?
How do you buy some of it?
Let me explain!
Sit back, relax, and enjoy
(thread)
But what is it?
How do you buy some of it?
Let me explain!
Sit back, relax, and enjoy
(thread)
The S&P 500 is a stock market index
Made up of 500 (hence the name) large-cap companies
The 500 companies account for about 80% of the American equity market by capitalization
(Actually, there are 505 stocks since it includes two share classes of stock from 5 companies
)
Made up of 500 (hence the name) large-cap companies
The 500 companies account for about 80% of the American equity market by capitalization
(Actually, there are 505 stocks since it includes two share classes of stock from 5 companies
)
Here are some of the stocks listed on the S&P 500... it would be a lot of stocks to list them all, but I’ll list a few of the more popular ones!
Remember, there are technically 505, but 5 come from two sets of share classes... so it’s 500 companies!!
Remember, there are technically 505, but 5 come from two sets of share classes... so it’s 500 companies!!
$ABBV 
$AFL
$ALK
$MO
$AMZN
$AAPL
$T
$CAT
$CVX
$KO
$COST
$DPZ
$HSY
$HD
$KSU
$MA
$NFLX
$PG
$O
$WMT
$XRX
$AFL
$ALK
$MO
$AMZN
$AAPL
$T
$CAT
$CVX
$KO
$COST
$DPZ
$HSY
$HD
$KSU
$MA
$NFLX
$PG
$O
$WMT
$XRX
That’s a list of 20... of the 500 total companies on the index
If you want to see the full index, I’d recommend going to Wikipedia (sorry to my high school English teacher lol)
Or just google “list of companies on S&P 500”!!
If you want to see the full index, I’d recommend going to Wikipedia (sorry to my high school English teacher lol)
Or just google “list of companies on S&P 500”!!
Notice how some of these companies pay dividends
$MMM
$JNJ
$T
$O
But also some of these companies don’t
$AMZN
$FB
$NFLX
$GOOG
And no, $TSLA is not currently on the S&P 500
$MMM
$JNJ
$T
$O
But also some of these companies don’t
$AMZN
$FB
$NFLX
$GOOG
And no, $TSLA is not currently on the S&P 500
What if you don’t want to pick your stocks, but you want to invest in the S&P 500?
Here are some popular index funds that mimic the S&P 500!!
$SPY
$VOO
$IVV
$FXAIX
$SWPPX
$VFINX
Here are some popular index funds that mimic the S&P 500!!
$SPY
$VOO
$IVV
$FXAIX
$SWPPX
$VFINX
So you know the companies, you know some index funds
BUT
How does the S&P 500 perform?
According to CNBC, the average annualized return of the S&P 500 index over the past 90 years is 9.8%
That’s a really solid average return
BUT
How does the S&P 500 perform?
According to CNBC, the average annualized return of the S&P 500 index over the past 90 years is 9.8%
That’s a really solid average return
Remember, that is average return YoY
Some years it returned 12%
Some years it returned -3%
Some years it returned 20%
Some years it returned -10%
That is why TIME IN the market is important
Ride the down years out and DON’T SELL
Some years it returned 12%
Some years it returned -3%
Some years it returned 20%
Some years it returned -10%
That is why TIME IN the market is important
Ride the down years out and DON’T SELL
Also remember that historical performance does not guarantee future performance
But, generally speaking, the S&P 500 goes up
It covers majority of the stock market, so when the overall stock market does good, so does the S&P 500
But, generally speaking, the S&P 500 goes up
It covers majority of the stock market, so when the overall stock market does good, so does the S&P 500
Personally, majority of my dividend portfolio is made up of S&P 500 stocks
HOWEVER
Just because a stock is listed on the S&P 500 doesn’t mean it is a good investment
Always, always, always do your research before buying stocks!!
*this thread is not investing advice
HOWEVER
Just because a stock is listed on the S&P 500 doesn’t mean it is a good investment
Always, always, always do your research before buying stocks!!
*this thread is not investing advice
That’s all I have today
Class is dismissed
I hope you enjoyed this thread and learned more about one of the most popular index’s for the stock market!!
If you are wanting to learn more about investing or dividends, send me a DM!
Thanks
@DecadeInvestor
Class is dismissed
I hope you enjoyed this thread and learned more about one of the most popular index’s for the stock market!!
If you are wanting to learn more about investing or dividends, send me a DM!
Thanks
@DecadeInvestor
