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Welcome to our guide to stocks in the S&P 500. Perfect for seeing how this index works and which S&P 500 stocks you should trade as a CFD at CAPEX!
The S&P 500 is a stock market index that tracks the performance of 500 stocks in the US. It is the leading US economic indicator and is used to measure the overall health of the stock market. All stocks in the S&P 500 are from publicly traded large-cap companies who are based in the US. These contain fewer tech brands than those in the NASDAQ, yet more high-cap stocks than the Dow. The S&P 500 features companies from many different sectors of the US economy. These include manufacturing, industrials, agriculturals, healthcare, technology, banking, financials and much more.
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Stocks in the S&P 500 can be bought or sold individually. This means that you could buy tech stocks like Apple and Amazon, or stocks in some iconic American companies like Walmart and McDonalds. You can also invest in indices that track the performance of the whole S&P 500.
At CAPEX, we let you trade CFDs in both of these investment options. This means that you can benefit from the rise and fall in the value of these assets without having to actually buy the stocks or indices themselves. A quick and easy way to take advantage of the sustained growth of the S&P 500.
The S&P 500 index was introduced in 1957 by two financial investment companies, Standard and Poor. It’s an index that aims to track the performances of the 500 leading US companies according to market capitalization. As a result, the S&P 500 provides a useful benchmark by which you can judge the investment in any asset you find at an online broker such as us at CAPEX.com.
The index tracks the market cap value of all of the stocks in the S&P 500. This refers to the total value of all of the shares that have been sold by a particular company. The stocks in the S&P cover a range of industries from information technology and healthcare to financials and industrials. It will be updated with additions and deletions that correspond with the changing fortunes of the largest companies in the US.
The list of stocks in the S&P 500 reads like a who’s who of US business. It features everything from long-standing US companies like Procter & Gamble to iconic ‘big tech’ brands such as Apple. In fact, the biggest stocks in the S&P 500 recently have predominantly been technology companies such as Microsoft, Amazon, Facebook, Tesla and Google.
Beyond these headline-grabbing brands, you’ll find many other major US names ranging from Johnson & Johnson to Visa and beyond. Other notable names include JPMorgan Chase & Co, MasterCard, Walt Disney, Exxon Mobil and Verizon.
It’s an index that covers all industries with real estate, energy, communication services and much more being heavily featured. The good news is that all of these stocks in the S&P 500 can be traded in the form of CFDs at CAPEX.
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It’s definitely a good idea to follow the progress of stocks in the S&P 500. This is because the index has enjoyed an average annual return of over 12% over the past decade. As a result, the best performing stocks in the S&P 500 could be a good investment if traded in the form of CFDs at CAPEX. Whether you’re investing in Apple shares or are researching the Netflix stock price, there’s plenty of confidence that can be gained in knowing that these stocks are featured in the S&P 500.
Remember that the value of stocks in the S&P 500 also offers you a good indication of the nation’s economic health beyond the stock market. This is because it offers a handy benchmark for judging the value of any economic asset, plus it gives you an instant picture of consumer confidence. All of which can prove invaluable when figuring out which CFDs to trade at CAPEX.
The S&P 500 is a dynamic tool that is constantly adjusted to account for the changes in the marketplace. Along with being rebalanced every three months, a committee will check each featured stock according to factors of industry, size and liquidity. Roughly speaking, this means each S&P 500 company should have a market capitalization of nearly $12 billion and have a public float with a significant number of shares outstanding. All of which shows that the S&P 500 only features the largest brands in the US.
At CAPEX, we offer you a quick and easy way to trade on all stocks featured in the S&P 500. This is because we feature a CFD method of trading. As a result, you won’t have to go through the long winded process of actually buying each individual stock outright. Instead, you’ll simply be able to benefit from the price rises or falls of any S&P stock.
Plus we should note the fact that you can even trade CFDs for the entire value of indices such as the S&P 500. This is alongside a range of other indices for the Dow and indices and all over the world. A great way to benefit from the rising value of the global stock markets.
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The S&P 500 is one of many indices that aim to help you make sense of market fluctuations in the US. Each of these indices will focus on different kinds of stocks and they will use different mechanisms to chart the progress of the featured companies.
For example, the stocks in the S&P 500 are weighted differently from those in the Dow Jones Industrial Average. The S&P 500 index is weighted according to market capitalization. As such, a higher percentage of this index is given to those with the largest market cap such as Apple and Microsoft, compared to smaller brands like Macy’s.
However, the Dow is a price weighted index which means that it is the stock price, along with dividends that influence how the index performs. Plus the S&P 500 covers all industry sectors as opposed to the NASDAQ that is technology-focused. With CAPEX, besides the stocks in the S&P 500, you’ll be able to trade stocks in the Dow and NASDAQ, so you’ll have plenty of options to choose from.
By now, you’ll understand that the S&P 500 is an incredibly helpful index for your online trades. Not only does it give you a snapshot of the health of the US stock market, but any company featured in the index could be worth a look in terms of your investment portfolio.
As long as you remember that any form of trading is risky by nature, then investing in stocks in the S&P 500 could be seen as a safe bet. After all, the index has enjoyed strong returns over the past decade, and it’s never been easier to invest in the S&P 500. This is especially true if you choose to do so through the CFDs on offer at CAPEX. So sign up and start trading in the biggest stocks in the US.