S&P 500 Index
The S&P 500 index is widely regarded as a major gauge of the U.S. equities market and includes 500 stocks of leading companies representing leading industries of the U.S. economy. By tracking 75% of all U.S. equity, this index provides a broad snapshot of the overall U.S. equity market.
The index is an investable portfolio designed for cost efficient replication or the creation of index-linked products. S&P 500 could be used as building blocks for portfolio construction and as a benchmark for investment performance.
The history of the S&P 500 dates back to 1923, with an expansion to include 500 companies in 1957.
The index constituents exhibit the following characteristics:
• Market Coverage: Approximately 75% of the U.S. equities market
• Weighting: Market capitalization (market value)
• Market Capitalization: Minimum of US$ 4 billion
• Public Float: At least 50%
• Reconstitution: As needed basis
Index Governance and Policy
This index is maintained by the S&P Index Committee, whose members include Standard & Poor's economists and index analysts. It follows a set of published guidelines and policies that provide the transparent methodologies used to maintain the index.