Can I buy shares of the S&P 500?

The S&P 500 isn’t a stock itself, but there are a few ways to buy stock in the companies that make up this benchmark index. If you want to invest in the S&P 500, you have two main options: Buy individual stocks in each of those companies, or buy an S&P 500 index fund or exchange-traded fund, also called an ETF.

How many shares does S&P 500 have?

505 stocks
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.

Can you buy S&P 500 stocks?

The S&P 500 itself is not a stock that can be purchased; it is an index that illustrates the overall direction of the 500 stocks that it tracks. You can buy into a mutual fund that mirrors the performance of the S&P 500, or you can seek to purchase shares in each of the companies that comprise the index.

Should you invest in the S&P 500 index fund?

Because an S&P 500 index fund involves 500 different companies, it makes for an inherently diversified investment. And you could certainly invest in a fund that only tracks those companies that make up the S&P 500. But investment management companies offer many different types of funds and portfolio recommendations.

What is the S&P 500 and how does it work?

The S&P 500 is an index comprised of 500 leading U.S. companies, and it powers some popular index funds. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page.

What is the difference between S&P 500 mutual funds and ETFs?

Contrarily, S&P 500 mutual funds may be either passive or active. They tend to have slightly higher fees than ETFs because of associated 12b-1 costs. Furthermore, mutual funds have slightly different structures, where investors may only buy them at the day’s closing net asset trading value (NAV) price.