S&P 500

Mutual and exchange-traded funds Index funds, including mutual funds and exchange-traded funds (ETFs), can replicate, before fees and expenses, the performance of the index by holding the same stocks as the index in the same proportions. ETFs that replicate the performance of the index are issued by The Vanguard Group (), iShares (), and State Street Corporation (SPDR S&P 500 ETF Trust, and ). The most liquid based on average daily volume is (), although SPY has a higher annual expense ratio of 0.09% compared to 0.03% for VOO and IVV, and 0.02% for SPYM. Mutual funds that track the index are offered by Fidelity Investments, T. Rowe Price, and Charles Schwab Corporation. Direxion offers leveraged ETFs which attempt to produce 3x the daily return of either investing in () or shorting () the S&P 500. ProShares offers 2x daily return () and 3x daily return (). Derivatives In the derivatives market, the Chicago Mercantile Exchange (CME) offers futures contracts that track the index and trade on the exchange floor in an open outcry auction, or on CME's Globex platform, and are the exchange's most popular product. The Chicago Board Options Exchange (CBOE) offers options on the S&P 500 as well as on S&P 500 ETFs, inverse ETFs, and leveraged ETFs. ==History==

In 1860, Henry Varnum Poor formed Poor's Publishing, which published an investor's guide to the railroad industry. In 1923, Standard Statistics Company (founded in 1906 as the Standard Statistics Bureau) began rating mortgage bonds Three years later, it developed a 90-stock index, computed daily. On Monday, March 4, 1957, the index was expanded to its current extent of 500 companies and was renamed the S&P 500 Stock Composite Index. On August 31, 1976, The Vanguard Group offered the first mutual fund to retail investors that tracked the index. On January 22, 1993, the Standard & Poor's Depositary Receipts exchange-traded fund issued by State Street Corporation began trading. Friday, September 17, 2021, was the final trading date for the original SP big contract which began trading in 1982. ==Selection criteria==

Like other indices managed by S&P Dow Jones Indices, but unlike indices such as the Russell 1000 Index which are strictly rule-based, the components of the S&P 500 are selected by a committee. When considering the eligibility of a new addition, the committee assesses the company's merit using the following primary criteria: These market cap eligibility criteria are for addition to an index, not for continued membership. As a result, an index constituent that appears to violate criteria for addition to that index is not removed unless ongoing conditions warrant an index change. • VolumeMinimum monthly trading volume of 250,000 shares in each of the six months leading up to the evaluation date • Stock exchangeMust be publicly listed on the New York Stock Exchange (including NYSE Arca or NYSE American), Nasdaq (Nasdaq Global Select Market, Nasdaq Select Market or the Nasdaq Capital Market) or Cboe (Cboe BZX, Cboe BYX, Cboe EDGA or Cboe EDGX). • DomicileThe company must have its primary listing on a U.S. exchange. • Securities that are ineligible for inclusion in the index are limited partnerships, master limited partnerships and their investment trust units, OTC Bulletin Board issues, closed-end funds, exchange-traded funds, Exchange-traded notes, royalty trusts, tracking stocks, preferred stock, unit trusts, equity warrants, convertible bonds, investment trusts, American depositary receipts, and American depositary shares. A study published by the National Bureau of Economic Research in October 2021 alleged that companies' purchases of ratings services from S&P Global appear to improve their chance of entering the S&P 500, even if they are not the best fit per the rules. ==Performance==

Dividends Since its inception in 1926, the index's compound annual growth rate—including dividends—has been approximately 9.8% (6% after inflation), with the standard deviation of the return, calculated on a monthly basis, over the same time period being 20.81%. While the index has declined in several years by over 30%, it has posted annual increases 70% of the time, with 5% of all trading days resulting in record highs. Returns are generally quoted as price returns (excluding returns from dividends). However, they can also be quoted as total return, which includes returns from dividends and the reinvestment thereof, and "net total return", which reflects the effects of dividend reinvestment after the deduction of withholding tax. == See also ==