The S&P 500 consists of 500 companies that issue a total of 505 stocks, as some companies, such as Berkshire Hathaway, have issued multiple classes of shares. The top 10 largest holdings are listed on the official S&P Global website. However, S&P does not currently provide the total list of holdings, at least not for free. Subscribers to S&P's research unit, Capital IQ, can get access to the entire list.
- A constituent is a member 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 index, before being added to an index.
- The S&P 500 index is market capitalization weighted, where it gives a higher percentage allocation to companies with the largest market cap.
- To join the S&P 500, a stock must meet a broad set of criteria, including having a total market cap of at least $11.8 billion, and with a public float of at least 10% of shares outstanding.
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 traded 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, including 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 least 10% of its shares outstanding, have a positive sum of four consecutive quarters of trailing earnings, report positive earnings for its most recent quarter, and also meet certain liquidity requirements. Companies may be removed from the S&P 500 if they deviate substantially from these standards.
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 market capitalization-weighted index. This means that the more valuable an individual company's stock becomes, the more it contributes 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.
Therefore, the addition or subtraction of smaller companies from the index will not have a noticeable impact on the overall return of the index. However, the removal or addition of even just one of the largest stocks can have a major impact.
S&P 500 components are weighted by free-float market capitalization. Larger companies affect the value of the index to a greater degree.
Top 25 Components by Market 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 Trust 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. Moreover, 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 index, 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. Class 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 Chase & 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 & Gamble 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. Class 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 classes of shares. When combined, Google's weighting in the S&P 500 is effectively 4th behind Amazon.com.