Markets
S&P 500
Definition
Standard & Poor's 500 — an index of 500 of the largest US publicly traded companies. Widely considered the best single measure of the US stock market. Average annual return since 1926: approximately 10%.
Related Terms
Benchmark
A standard against which investment performance is measured. The S&P 500 is the most common benchmark for US stocks. Fund managers are evaluated on their ability to beat their benchmark.
Index Fund
A mutual fund or ETF designed to track the performance of a specific market index like the S&P 500. Index funds offer broad diversification, minimal management, and very low fees. Warren Buffett recommends them for most investors.
Get Smarter About Investing
Free weekly market insights, calculator updates, and investing education.