Want to invest in the S&P 500 index? Here are the top 50 companies listed in the S&P 500 by weight. Many investors use this index as a benchmark for their portfolio. There are also some ETF (Exchange Traded Funds) and mutual funds that offer index fund mimicking the S&P 500 components allocation.
Beating the performance of this index is the goal of almost every investor, hedge fund, and equity portfolio manager. If you are interested to benchmark your portfolio using this index, get to know which companies make up the S&P 500.
What is S&P 500?
S&P 500 is a stock market index that tracks the performance of roughly the 500 largest companies in the United States of America. It is widely regarded as the representation of the US stock market because it covers over 80% of the total US stock market capitalization.
Top 50 Companies in the S&P 500 By Weight:
|Facebook Inc. Class A||FB|
|Alphabet Inc. Class A||GOOGL|
|Alphabet Inc. Class C||GOOG|
|Berkshire Hathaway Inc. Class B||BRK.B|
|Johnson & Johnson||JNJ|
|JPMorgan Chase & Co.||JPM|
|Visa Inc. Class A||V|
|Walt Disney Company||DIS|
|Procter & Gamble Co.||PG|
|PayPal Holdings Inc.||PYPL|
|UnitedHealth Group Inc.||UNH|
|Home Depot Inc.||HD|
|MasterCard Inc. Class A||MA|
|Bank of America Corp.||BAC|
|Comcast Corp. Class A||CMCSA|
|Verizon Communications Inc.||VZ|
|Exxon Mobil Corp.||XOM|
|Cisco Systems Inc.||CSCO|
|Thermo Fisher Scientific Inc.||TMO|
|Merck & Co. Inc.||MRK|
|NIKE Inc. Class B||NKE|
|NextEra Energy Inc.||NEE|
|Accenture Plc Class A||ACN|
|Eli Lilly and Company||LLY|
|Texas Instruments Inc.||TXN|
|Costco Wholesale Corp.||COST|
|Honeywell International Inc.||HON|
If you’d rather want to know the top 50 companies in the S&P 500 so that you can choose which companies to allocate your funds according to your risk appetite and interest, the list above can guide your strategy.
Some investors are trading with the top 10 companies, some prefer the top 25, while others want the whole 500 in one basket of index fund. If you are interested to invest in an index fund that mimics the performance of the S&P 500, check out the next guide below.
How to Invest in S&P 500?
1. Invest in S&P 500 through CFD broker
In the modern world, we can already invest online using a trusted broker like eToro. The world’s top indices are available on eToro platform. You can start investing in any index like S&P 500, NASDAQ 100, Dow Jones 30 and many more.
2. Invest in S&P 500 Index Funds
The best way to invest in S&P 500 index fund is by investing in an ETF, mutual fund or UITF with S&P 500 as their benchmark.
Some of the best S&P 500 index ETFs include iShares Core S&P 500 ETF (IVV), SPDR S&P 500 (SPY), and Vanguard S&P 500 ETF (VOO).
Benefits of Investing in S&P 500 Index Funds
According to Warren Buffett, the best retirement plan is to put 10% of your funds in short-term government bonds and 90% in an S&P 500-tracking ETFs.
S&P 500 Index Funds are ETF (Exchange Traded Funds) of mutual funds that track the performance of the S&P 500. One advantage of investing in index fund is diversification because your fund will be allocated among different high-quality stocks.
Another benefit of investing in index funds is they are managed by portfolio experts who already know how to grow your money with different equities.