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What Is the S&P 500? And Why It Matters to Every Investor

By user on July 11, 2025

Overview:
The S&P 500 tracks the 500 largest U.S. companies. It’s the gold standard benchmark for market performance.

Why It Matters:

  • Covers all major industries.
  • Historically returns ~10% annually.
  • Easier and safer than stock-picking for beginners.
  • ETF example: SPY and VOO.

Cool Fact:
If you invested $1,000 in the S&P 500 in 2000, you’d have over $5,000+ today (even after crashes).