S&P 500

Definition

The S&P 500 is a stock market index tracking 500 large publicly traded U.S. companies across many sectors.

Why it is important

• Widely used benchmark for U.S. large-cap stocks
• Represents a large share of total U.S. market value
• Common reference point for long-term market performance

How people invest in it

You generally cannot buy the index directly, but you can invest through index funds or ETFs designed to track it.

Practical takeaway

For many investors, broad S&P 500 funds offer a simple starting point for diversified U.S. equity exposure.