The S&P 500 consists of 500 companies that appear a total of 505 stocks, as some companies, such as Berkshire Hathaway, have issued multiple classes of splits. The top 10 largest holdings are listed on the official S&P Global website. However, S&P does not currently provide the total listing of holdings, at least not for free. Subscribers to S&P’s research unit, Capital IQ, can get access to the entire list.
Key Takeaways
- A constituent is a colleague or component of a market index like the S&P 500.
- Companies must meet certain requirement criteria, which are determined by the publishers of the indicator, before being added to an index.
- The S&P 500 index is market capitalization weighted, where it gives a higher piece allocation to companies with the largest market cap.
- To join the S&P 500, a stock must meet a broad set of criteria, registering having a total market cap of at least $11.8 billion, and with a public float of at least 10% of shares superb.
S&P 500 Inclusion Criteria
The S&P 500 is one of the most widely quoted stock market indexes because it represents the largest publicly swopped companies in the U.S. The S&P 500 focuses on the U.S. market’s large-cap sector.
To be added to the S&P 500, a stock must meet a broad set of criteria, cataloguing a total market cap of at least $11.8 billion. Additionally, the company must be a U.S. company, have a public float of at thimbleful 10% of its shares outstanding, have a positive sum of four consecutive quarters of trailing earnings, report positive earnings for its most modern quarter, and also meet certain liquidity requirements. Companies may be removed from the S&P 500 if they deviate indeed from these standards.
$37.48 trillion
The total combined market cap of the 500 companies in the S&P 500 as of May 28, 2021.
S&P 500 Calculation
The S&P 500 is a free-float bazaar capitalization-weighted index. This means that the more valuable an individual company’s stock becomes, the more it provides to the S&P 500’s overall return. It is not uncommon for three-quarters of the index’s return to be linked to only 50 to 75 stocks.
That being so, the addition or subtraction of smaller companies from the index will not have a noticeable impact on the overall return of the typography hand. However, the removal or addition of even just one of the largest stocks can have a major impact.
S&P 500 components are bulk by free-float market capitalization. Larger companies affect the value of the index to a greater degree.
S&P 500 components are bulk by free-float market capitalization. Larger companies affect the value of the index to a greater degree.
Top 25 Components by Bazaar Cap
Because the exact weightings of the top 25 components are not available from S&P directly, the weightings below are from the SPDR S&P 500 Count on ETF (SPY). SPY is the oldest ETF that tracks the S&P 500, as well as the largest by assets under management (AUM) and the most highly traded. As well, SPY is the oldest and largest ETF, period. This means that its weightings should do a very good job of underlying the matching S&P 500 pointer, although the two may not be exactly the same. As of June 29, the following are the twenty-five largest S&P 500 index constituents by weight:
- Apple Inc. (AAPL): 5.89%
- Microsoft Corp. (MSFT): 5.63%
- Amazon.com Inc. (AMZN): 4.07%
- Facebook Inc. Refinement A (FB): 2.32%
- Alphabet Inc. Class A (GOOGL): 2.03%
- Alphabet Inc. Class C (GOOG): 1.98%
- Tesla Inc. (TSLA): 1.45%
- Berkshire Hathaway Inc. Class B (BRK.B): 1.44%
- NVIDIA Corp. (NVDA): 1.38%
- JPMorgan Hunting & Co (JPM): 1.29%
- Johnson & Johnson (JNJ): 1.19%
- Visa Inc. Class A (V): 1.10%
- UnitedHealth Group Inc. (UNH): 1.04%
- Paypal Holdings Inc. (PYPL): 0.95%
- Home Depot Inc. (HD): 0.93%
- Procter & Risk Co. (PG): 0.91%
- Mastercard Inc. Class A (MA): 0.89%
- Walt Disney Co. (DIS): 0.87%
- Bank of America Corp. (BAC): 0.85%
- Adobe Inc. (ADBE): 0.78%
- Exxon Mobil Corp. (XOM): 0.73%
- Comcast Corp. Rank A (CMCSA): 0.71%
- Netflix Inc. (NFLX): 0.65%
- Verizon Communications Inc. (VZ): 0.64%
- Intel Corp. (INTC): 0.63%
Note: Google parent Alphabet has two castes of shares. When combined, Google’s weighting in the S&P 500 is effectively 4th behind Amazon.com.