The S&P 500 Index…Part I
The S&P 500 index (one of the world’s largest indices) is a market-weighted index that measures the stock performance of the 500 largest companies listed on stock exchanges in the US. The companies on the index are also estimated to account for c. 90% of the total US equity market.
The infographics in this post utilized data from Bloomberg Fidelity Design #SlickCharts and #FKNol to visualize the composition of the companies on the S&P 500 index.
As trends have suggested, the largest sector on the S&P is IT with companies valued at $12.2tn. This figure accounts for 22% of the total market cap of the companies on the S&P 500 Index. The second and third largest are consumer discretionary and healthcare with $7.6tn (13.7%) and $6.9tn (12.6%) respectively. Real estate is the smallest with $1.4tn (2.6%). As expected, the largest company on the index is #Apple with a market cap of $2.03tn. This accounts for 17% of the IT market cap on the index. #Amazon is the largest company under consumer discretionary, accounting for 21% of that sector’s market cap. #Alphabet (#Google ‘s parent company) constitutes 14% of the communication services market cap. This also applies to #BerkshireHathaway and #JohnsonandJohnson which account for 8% and 6% of financial services and healthcare sectors respectively.
A further review indicates that the largest 20 companies on the index account for 37% of the market cap of the companies on the S&P Index. 15% is from the IT sector followed by 8% from communication services and 6% from consumer discretionary sectors. All other sectors in the top 20 constitute 9%. IT has 6 companies among the 20 largest followed by 4 from communication services and 3 each from financial services and consumer staples. The remaining 4 companies are spread across healthcare (1), industrials (1) and consumer discretionary (2).
Does any info here fascinate you? Let’s know in the comment section.
….Stay tuned for the next post on the performance of the sectors & companies on the S&P 500 Index
