S&P 500 Company List

by Gavin in Blog

June 27, 2021 • 0 comments

Below you will find the SP500 company list.

We will also look at the history of the S&P500 index as well as the biggest companies in the index.

Enjoy!

Contents

• Introduction
• History
• What Are The Biggest Companies In The S&P 500?
• List Of S&P 500 ETF’s And Futures
• How To Invest In The S&P500?
• S&P 500 Company List

Introduction

The Standard and Poor’s 500, referred to as S&P 500, is the stock market index that derives its value from the 500 largest companies listed on the United States stock exchanges.

The top 25 companies account for around 27.5% of the total market capitalization of the index.

The S&P 500 index is used in Conference Board Leading Economic Index computation as one of the factors to forecast economic direction.

The CAGR of the index since its inception in 1926, including dividends, has been around 9.8% or 6% inflation adjusted.

Source: Macrotrends

History

Henry Varnum Poor published an investor’s guide related to the railroad industry by forming Poor’s Publishing in 1860.

The Standard Statistics Company developed its first stock market index consisting of 233 companies of the U.S., computed weekly.

It created an index composed of 90 stocks in 1926, with computation derived daily.

Poor’s Publishing and Standard Statistics merged to form Standard & Poor’s in 1941.

The index was renamed as S&P 500 stock composite index in 1957 by expanding to 500 companies.

It transitioned to a public-float weighted basis in 2005.

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What Are the Biggest Companies in the S&P 500?

The biggest companies in the S&P500 index as of June 2021 are:

Apple – $2.1T
Microsoft – $1.8T
Amazon – $1.6T
Alphabet – $1.4T
Facebook – $839B
Tesla – $641B

Cleary tech has been a big outperformer in recent years, but this can change over time.

It is interesting to look back over past decades to see which were the biggest companies in the past.

Microsoft is the only company that has been in the top 10 since the 2000’s.

Apple has only been in the list since the 2010’s.

The list below from Charlie Bilello shows that the biggest companies list is constantly changing. Which will be the biggest companies in ten years’ time?

That is how you need to think about investing.

Will Tesla eventually become bigger than Apple, Amazon, and Microsoft if the electric car and self-driving revolution picks up steam in the next decade?

Of the companies above, will any of them be the next Eastman Kodak or Sears Roebuck? It is hard to image, but it is possible.

List of S&P 500 ETF’s and futures

Below is a list of some of the most popular ETF’s and futures on the S&P 500.

These can be a great way to create diversified investments without having to make bets on specific stocks.

How to Invest in the S&P500?

To invest in the S&P 500, you will first need a reputable broker.

We recommend Interactive Brokers but ThinkorSwim is also ok. Schwab is good these days and Tasty Works is ok if you are looking to do basic option strategies.

Once you become proficient at trading options there is a whole new world of investing opportunities for you.

When buying shares in SPY for example, you can only profit through dividends and rising stock prices.

With options, you can profit in up, down, and sideways markets.

Check out these educational articles if you want to learn more about option trading.

Full SP500 Company List

Below you can find the full SP500 company list.

Trade safe!

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.