What is the S&P and how does it affect me?

Investing can be a complicated game, and you want to make sure you get your money's worth.What is the S&P 500? Standard and Poor 500 One topic people always want to talk about is the Standards & Poor's 500 Index or S&P 500 for short.

The S&P 500 is made up of 500 of the world largest and most profitable companies whose market capitalization is worth an estimated 6.1 billion. People see it as the leading indicator of equities in the United States and is a direct reflection of how well the large-cap universe is doing at the current time. It sets the bar for market value weighted index for the U.S. stock market and other S&P indexes. The five companies with the highest weights are Apple, Alphabet, Microsoft, Amazon, and Facebook.

What does the S&P 500 mean for you?

Performance wise, the S&P 500 is a concise gauge of large-cap American equities, meaning it is an amazing way to get a good return on your investments. Most people do quite well with S&P investments as it is a stable market with lucrative returns.

For more information on the Standards & Poor's 500 Index contact West Financial Group.