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What is the S&P 500?

The S&P 500 is the index of the 500 largest listed US companies: the world's most used reference for "how the market is doing".

Created by Standard & Poor's, the index weights companies by market capitalization: giants like Apple, Microsoft and Nvidia count far more than smaller members. It covers about 80% of the entire US stock market's value.

Historically the S&P 500 has returned roughly 7–10% per year over long horizons, dividends included, while going through drawdowns of more than 50%. It's the foundation of most passive portfolios.

Concrete example

Someone who bought an S&P 500 ETF in 2010 and reinvested dividends would have more than quadrupled their capital by 2024 — while riding through the 2020 crash and the 2022 bear market.

How you see it in InsiderFlow

On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.

Frequently asked questions

How do you invest in the S&P 500?

The simplest way is an ETF that tracks it, listed on European exchanges too, with very low annual costs.

Are the S&P 500 and the Nasdaq the same thing?

No: the Nasdaq-100 gathers 100 large (mostly tech) companies listed on the Nasdaq exchange, while the S&P 500 covers 500 companies across all sectors.

Related terms

What is a stock index?What is an ETF?What is the Nasdaq?