Glossary entry
The S&P 500 measures the performance of 500 leading large companies in the United States. Constituents are selected under the index provider's rules, and weights reflect float-adjusted market capitalization. It is a benchmark rather than a security; funds and derivatives can seek to track its performance with their own costs and risks.
Illustrative example
If a heavily weighted company falls while several smaller constituents rise, the index can still decline because contributions depend on constituent weights.
What to consider
The index does not represent every US company, and an index-linked product may differ from the benchmark after fees and tracking effects.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.