What is the S&P 500?

The S&P 500 is one of the most important stock indices in the world. The index tracks the performance of 500 large publicly listed companies in the United States. As a result, the S&P 500 provides a broad picture of the American economy.

 

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The S&P 500 is often regarded as the main benchmark for the US stock market.

 

The index includes companies from various sectors, such as technology, healthcare, industry and consumer goods. Larger companies have a greater influence on the level of the index than smaller companies within the list. Because the S&P 500 consists of 500 companies, it is generally more stable than a single individual share.

 

Many investors use the S&P 500 to compare their returns or to invest broadly in the American market through an ETF.

 

 

 

 

 

 

Short example:

 

Suppose the S&P 500 stands at 4,000 points. Over the course of a year, the 500 companies increase on average by 8%. The index then rises to 4,320 points. If you have invested €2,000 in an ETF that tracks the S&P 500, your investment grows by approximately 8% to €2,160. If the index declines by 8%, your investment decreases to approximately €1,840.

 


Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult a professional advisor when making financial decisions. The information and tips provided on this website are based on the personal insights and experience of our analysts and are intended for educational purposes only.

 

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