The S&P 500 Index

By Matthew Frankel, CFP – Updated Jun 23, 2025 at 3:42 PM

Key Points

The S&P 500 index includes 500 large U.S. companies, representing about 80% of U.S. market value.
You can invest in S&P 500 through low-fee ETFs or mutual funds to gain broad market exposure.
The S&P 500 offers a reliable benchmark for comparing portfolio performance against U.S. stocks.

When it comes to the major U.S. stock indexes, the S&P 500 index is considered the best gauge of the overall stock market's performance and an indicator of how large U.S. corporations are performing.

With that in mind, here’s what all investors should know about the S&P 500 index, how it works, how you can invest in it, and why doing so could be a smart move.

Loading paragraph...

S&P 500 listed repeatedly. — Image source: Getty Images.

Loading image...

Loading paragraph...

Loading pitch...

Loading paragraph...

Loading pitch...

Loading paragraph...

Related investment topics

Loading paragraph...

Top Stocks to Buy and Hold in 2025

Get a list of the best companies to buy and hold for the long haul.

Best Russell 2000 ETFs to Buy in 2025

If you want exposure to hundreds of small-cap stocks, the easiest way is with a Russell 2000 ETF. Discover the top 5 here.

Loading hub_pages...

Loading paragraph...

Loading pitch...

Loading paragraph...

Loading faq...

About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelCFP

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of Motley Fool Money. Matt Frankel has positions in Amazon, Berkshire Hathaway, General Motors, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Goldman Sachs Group, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, Vanguard S&P 500 ETF, and Walmart. The Motley Fool recommends Broadcom and General Motors and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.