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How to Invest in S&P 500?
Author: Maks Artemov
Dear Clients and Partners,
In this article, we will discuss trading S&P 500. In the exchange, this index is trading under the ticker US500; today, it can be found in many popular trading terminals.
What is S&P500?
S&P 500 was created by Standard and Poor’s (currently S&P Global) on March 4th, 1957.
Earlier, another index called Dow Jones Industrial Average Index used to be popular. It included the 30 largest industrial companies. Also, other indices were there; however, they covered only a small group of companies, hence, did not represent the whole picture of market moods.Standard and Poor’s went their own way and decided to create an index that would show the market situation on the whole and not just the state of things in the industrial sector. This is how the S&P 500 appeared.
The new index was comprised of 500 large companies with the biggest capitalization from various sectors. However, the number of companies and the exact contents of the index remains prone to change.
What are the companies in the S&P 500?
The index includes the 500 largest companies traded in the US stock market. To be listed in the index, a company must comply with the following requirements:
The leaders of the index are currently the giants of the IT and banking sectors, such as:
S&P 500 is calculated based on weighted capitalization, which means companies that have larger capitalization have more influence.
How to invest in the S&P 500?
S&P 500 is good for not only intraday trading but medium-term investments as well. Thanks to many market players being interested, the index demonstrates high volatility and liquidity during the trading session. Also, you can go on trading after the trading session ends, though liquidity will shrink.
The only limitation for future investors is the high price of the index, which entails the use of leverage or the increase of the deposit.
Read more at R Blog - RoboForex
Sincerely,
RoboForex team
Author: Maks Artemov
Dear Clients and Partners,
In this article, we will discuss trading S&P 500. In the exchange, this index is trading under the ticker US500; today, it can be found in many popular trading terminals.
What is S&P500?
S&P 500 was created by Standard and Poor’s (currently S&P Global) on March 4th, 1957.
Earlier, another index called Dow Jones Industrial Average Index used to be popular. It included the 30 largest industrial companies. Also, other indices were there; however, they covered only a small group of companies, hence, did not represent the whole picture of market moods.Standard and Poor’s went their own way and decided to create an index that would show the market situation on the whole and not just the state of things in the industrial sector. This is how the S&P 500 appeared.
The new index was comprised of 500 large companies with the biggest capitalization from various sectors. However, the number of companies and the exact contents of the index remains prone to change.
What are the companies in the S&P 500?
The index includes the 500 largest companies traded in the US stock market. To be listed in the index, a company must comply with the following requirements:
- capitalization no less than 6 billion USD.
- registered in the USA.
- stock liquidity (the number of stocks traded) no less than 250,000 per month.
- no less than 50% of the stocks available for free trade.
- profitability during the four last months of the accounting period.
The leaders of the index are currently the giants of the IT and banking sectors, such as:
- Apple Inc (NASDAQ: AAPL).
- Microsoft Corporation (NASDAQ: MSFT).
- Amazon.com Inc (NASDAQ: AMZN).
- Facebook Inc (NASDAQ: FB).
- JPMorgan Chase & Co (NYSE: JPM).
S&P 500 is calculated based on weighted capitalization, which means companies that have larger capitalization have more influence.
How to invest in the S&P 500?
S&P 500 is good for not only intraday trading but medium-term investments as well. Thanks to many market players being interested, the index demonstrates high volatility and liquidity during the trading session. Also, you can go on trading after the trading session ends, though liquidity will shrink.
The only limitation for future investors is the high price of the index, which entails the use of leverage or the increase of the deposit.
Read more at R Blog - RoboForex
Sincerely,
RoboForex team