Is The S And P 500 A Good Deal?

s and p 500
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Back To Basics With The S And P 500

The S&P 500 Index

Do you know what the S And P 500 is? Before moving on you need to understand what the S&P 500 is. The Standard & Poors 500, most often referred to as the S&P 500 Index, is a group of 500 large U.S company stocks, used as a benchmark to measure the U.S stock market overall. It is because of this that many mutual funds as well as index funds hold the same stocks as the SP500 does in an attempt to duplicate returns. The symbol for trading the S&P 500 is SPX.

S&P Trading

Many financial experts strongly believe that the S and P 500 is a solid investment choice due to the companies that make up the index. Keep in mind though that since the S&P 500 index is composed of 500 stocks, the performance of the index gyrates like any other stock based on the market. So if market fluctuations keep you up at night, you may want to steer clear of the S&P 500.

Some of the common U.S companies within the index include 3M Company, Abbott Laboratories, Allstate, American Express, Apple, AT&T, Bank of America, Baxter, Bed Bath & Beyond, Best Buy, Boeing, Bristol-Myers Squibb, CarMax, Cisco, Coca-Cola, Delta Airlines, Dow Chemical, EBay, Estee Lauder, Exxon Mobil, Facebook, Family Dollar Stores, Ford Motor Company, The Gap, General Electric, General Mills, General Motors, Google, Hasbro, Home Depot, Intel, Johnson & Johnson, Kellogg, Kimberly-Clark, Kraft Foods, Lowe’s, Macy’s, Mattel, McDonalds, MetLife, Netflix, Nike, Oracle, PepsiCo, PetSmart, Pfizer, Procter & Gamble, Ross Stores, Sherwin-Williams, Southwest Airlines, Smucker, Staples, Target, Texas Instruments, Time Warner, Tyson Foods, Under Armour, Urban Outfitters, Verizon, Walgreens, Walmart, Whirlpool, Whole Foods Market, Xerox and Yahoo.

Is the S&P 500 index a good deal? If market gyrations do not bother you and you want to invest in some of the companies listed above which make up the index, it might just be the investment you are looking for.


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