The S & P 500 index ("Sipi", "Sepuha") is over 5.74 trillion dollars, an indicator of the value of securities of 500 large companies, which, from the point of view of the Standard & Poor's rating agency, successfully represent all the largest American ones.
The agency itself determines the weight of the company in the index. This happens annually, changes come into effect on the third Friday of September or on an arbitrary date more suitable for the index, and, as always in Through the Looking-Glass, the weighting methodology and calendars are very subjective. But the initial criteria by which you can get into the calculation are quite transparent.
First of all, an index is an ordinary index, equal to the ratio of the value of its shares in the current year to the base year. In a simplified form, this is the value of each of the 500 companies, multiplied by one five hundredth and the weight in the index, which is nothing more than a reflection of the free float. Weighing is carried out using the same, understandable scales.
The reason for such attention to free float is the need to take into account the degree of openness of the company to the market. The emphasis on the roof of state capitalism in relations with the American S & P still will not work. The agency is interested in distinguishing shares owned by strategic investors from securities traded among those whose decisions depend on the value of the securities and the assessment of the company's prospects.
The range of strategic market participants includes:
Other companies,
Most government holdings,
Employees and managers, general directors,
private equity funds, venture funds and private companies trading shares of their own volume, strategic partners,
Holders of blocked shares issued under an agreement whereby they do not give the right to dividends until some event occurs, usually the achievement of a certain level of income;
Financial trusts of employees and their families,
Funds associated with the company,
Holders of non-listed class shares,
Private investors who control 5% or more of the company's shares.
The selection for the S&P 500 index is based on four parameters:
With a market capitalization of at least $5.3 billion and a number of shares outstanding of at least half of the total,
A ratio of annual trading volume to capitalization above 1.0x and a minimum trading volume of 250,000 shares per month within six months prior to the rating decision.
So, the S&P index is a coefficient in points that compares the calculated and base amount company values divided by 500 and multiplied by the share of free float in the total number of shares outstanding. The cost of a futures contract on the S&P 500 repeats the movements of the index and is equal to two hundred and fifty dollars multiplied by the opening quote for the index.
The quote is calculated based on the opening prices of the shares included in its calculation. The scheduled revision is carried out after the close of trading on the third Friday of the last month of each quarter. When revising, prices are taken into account as of the second Friday of the same month. The weight of each company throughout the week is assumed to be equal to one per number of elements in the index. If there are several classes of shares from a company, then within this unit a proportional distribution is made according to market value each class.
Changes in the share of shares from corporate events (share splits, dividend payments, company divisions, changes in the structure of ownership rights) are taken into account in the index after the close of trading on the day before the accounting date. The impact of additional placements is taken into account on the day of the event.
Trading the S&P 500 index reduces the cost of risky investments compared to trading each of its components separately. Low transactions with index futures are explained by three factors.
Previously, the exchange had a Nyse 80A rule that prohibited S&P500 arbitrageurs from using market orders on movements in the Dow Jones Industrial Average over 2%. Instead, they could use orders that depend on the previous move - an order to sell on an increase or buy on a fall. it is possible to sell on an increase in case of a rise in price or sideways movement in the previous tick, and to buy on a fall - in case of a decrease or no change. At the end of the 2000s, the 80A rule was canceled, and now it no longer smooths out the temporal volatility of the market. So there is more volatility, which is in the hands of robots.
S&P 500 futures are also used to hedge risks.
The scheme of the transaction is as follows.
We are looking for what can be better than the market. We find AAPL. We buy shares for 50 thousand dollars, Apple has a beta of 1.0. We multiply the beta by the purchase price and get the amount of $50 thousand, for which we sell on the S&P 500 index as a hedge.
If a company trades better than the market, then when futures fall, a short position on contracts brings more than a loss on shares, and when futures grow, Apple's acquisition gives net profit, even though futures are unprofitable.
Instead of short positions in futures, it is possible to buy options to sell shares at a specified price at any time before the expiration date of the option. But buying options is a non-linear hedge because the relationship between option and stock prices is non-linear. As the stock price rises, the value of puts on them falls, but the rate of its decline slows down. Back in the 1980s, Leland O'Brien Rubinstein Associates came up with the idea of repeating a covered put using a futures contract.
Buying shares instead of selling puts, plus selling futures instead of shorting futures. Thus, futures largely replace options.
The most common mistake in trading the S&P 500 index is the illusion of victory. Beginners transfer from the banking sector, where they bring a stable, but barely tangible income, in the range of 8-9% per annum in rubles.
The first couple of years, if you hit a wave of growth, inexperienced traders can make both 20% and 25% in dollars. Of course, this is a joy, compared with a miserable 8-9% in rubles, which, by the way, not everyone does yet, because some traders simply have it on their account, and not on a term deposit under high percent. In general, I repeat, the enthusiasm of traders rolls over at the sight of the growth of the market, and it should be so. Not everyone has time to compare their profitability with the market as a whole.
Having made 20%, the guy cannot calm down: on the one hand, he earned twice as much as a bank deposit, he beat inflation many times over, he insured himself against the depreciation of the ruble, and on the other hand, many do more. If a beginner bothers to look at the profitability of sepukha as a whole, then only with rose-colored glasses.
If the market has grown by 30%, and so far only twenty percent has been achieved, for a trader this means that in a year he will do all forty. In reality, of course, if you made 20% and the market made 30%, then you are trading badly. And yet, geniuses in Russia are countless, and anyone who has an extra magpie, which is still not enough for a decent vacation, knows that trading can be learned. Especially if you just follow the index.
Over time, a beginner learns two important things: firstly, you can trade not shares of a little-known bullshit that did not reach the market yield, and not some Dontnow Semiconductors, but the most important S&P500 stock index in the world, and secondly, you can repeat the portfolio index is not completely, but partially. And, going all out, the newcomer even begins to regularly beat the market by three or seven percentage points. But it was not there. The next year the market falls by 25%, but what about the trader? The poor fellow beats the sepukha, yes, by as much as 5 percentage points, which is not a lot for a beginner, by no means ... but the losses are 20%! And then he remembers bank deposit with great reverence. And he curses himself on what the light stands.
Traders who tell the market who they are, what, how much, and why they want to trade are known as sunshine traders. These are stars, celebrities of the stock market or a single investment community. Can I be a star? No, it is better for a normal trader not to become one.
Let's think with our heads. Do you have a lot of trading experience and excellent results? Hmm, that's no reason... If you can count on more high level liquidity, just talking about yourself, then everyone would do it. If the stars light up in the sky, does anyone need it? No. On the contrary, if someone needs it, such a star, at best, will copy the reports of truth-tellers from the Investcafe, sitting over a cup of coffee with four spoons of sugar. Or hire a slave to write. It just doesn't make any sense.
If it were that simple, traders in the know, but little known, would try to hide that they are in the know, and reputable, well-known and well-informed investors would trade through front men or otherwise disguise their status. The trader in the thread who tries to pass off as uninformed bidders is called the wolf in the herd of sheep. But it’s also a no-brainer that the wolf from Wall Street is distinguished, first of all, by deep awareness. And if the guy is very smart, then there is no way to trust him.
Trading in sunlight works well when the trader is sincere and conscientious, and also, importantly, well known, but necessarily not well informed, and everyone knows it. Of course, stars are not born in the Horns and Hooves office. The larger the market volume, the larger the own volume should be and the higher the popularity of the trader who needs to be "under the Sun". Only in this way can an individual bidder gain the trust of the entire market. I see an important consequence of this lemma in that Russian market You can be a lucky star even sitting at home!
Our market is so small and insignificant compared to the Nyse and Nasdaq that it is completely dependent on every sneeze in the stock news. And if you spice it up with the fact that this is an insider, then any tabloid truth will quickly fly to the other side of the Dnieper. And yet, let's return from our sheep, to wolves with. Trading in sunlight is less successful than in the shade for two reasons.
But what about the securities commission and the fight against insider information? It is possible to understand the actual interests of a trader, but for this you need to shovel a sea of information, for which few people have time, and certainly not in a hole, and not even at the monitor screen with open positions. One way or another, solar traders entice others to enter the market, and first of all, franchisors (layering), quarter-stalkers and squeezers. Someday I'll tell you who they are. Thus, being a star is work and a huge responsibility, it is useless (in the sense of no one needs it) work with transient results and a very great danger of falling out of the cage and going rogue.
And yet, it happens that sunshineers make good profits on sepuha. Here we can recall one interesting story about the arbitrage of the S&P 500 and the exchange-traded fund on a spider (SPDR). For several months in 1998-1999, one broker, well known to SPDR market makers, traded orders that were too large. The largest orders were about eight hundred and fifty thousand shares, or about $85 million at the then $100 per share price. In the first few trades, as soon as market makers executed his orders, it immediately became clear that the market was going in the opposite direction, and as a result, large liquidity providers suffered only losses. Broke them, in general.
Soon the broker was "under the hood", he began to pay close attention. Market makers have found that when he wants to trade a large volume, the price almost always goes in his favor after five minutes, and the broker closes these positions on the same day with a substantial profit. Market makers began to hedge their SPDR positions through trades in S&P 500 index futures. After the hedge ended, liquidity providers immediately continued to trade futures in the same direction in order to profit from the relationship between the broker's trades and the subsequent price change.
For nine months, the history of large transactions was repeated 70-90 times. And then suddenly it stopped. But what remained in the memory of the exchange was that the broker usually clearly predicted the subsequent movements of the S&P 500 index. Market makers made him a small fortune, and then themselves, when it dawned on them about the correlation. True, no one on the exchange still knew how the broker's client got information about the future movement of the index.
Then the market makers assumed that the client was trading ahead of large programmable trades or was engaged in the same franchising, but in relation to another trader. Both are violations of the law, both on the part of the client and the broker. Few people knew that the client could be franchising his own orders and that he was a large investment company that followed a strict investment policy that prohibited futures trading but allowed SPDR trades.
Francrunning the S&P 500 in front of itself reduces the costs of programmatic deals when markets are generally highly interconnected but temporarily not moving perfectly in step. By submitting orders to both markets at the same time, the trader received in both markets, and a lot of time passed until the market came to its senses and cleared the actual sizes of positions. However, there was a run in front of oneself, or is it a leisurely fantasy, is still unknown.
Stay up to date with all important United Traders events - subscribe to our
S&P 500 stock index includes shares of 500 US companies with the largest capitalization. The lists of companies are compiled by the analytical company Standard & Poor's, which launched the index back in 1957. Prior to the S&P 500, the company issued other indices, for example, there was an S&P 90.
The S&P 500 index takes into account the shares of companies that are traded on, and represent all sectors of the US economy, so it is believed that it reflects its state as a whole. The index is compiled by Standard and Poor's Corporation, a division of McGrow-Hill.
attractiveness valuable papers The S&P 500 is due to the fact that the listing includes stocks from all industries American economy, which most objectively reflect the state of different markets. Total capitalization reaches 11 trillion dollars.
Currently, the largest share in the index (22.3%) belongs to financial companies. 15% of the index falls on companies in the information technology sector, 10% - on industrial companies. All other sectors of the S&P are represented in the index by various small shares.
The proportions of the company are as follows:
The Standard & Poor's 500 Index, also referred to as the "broad market index", is an index weighted by market capitalization (equal to the product of the number of outstanding shares and the price per share). To be included in the index, companies must have a market capitalization greater than $4 billion.
The calculation is based on the weighted average of the companies' market capitalization, namely the sum of the market prices of shares multiplied by the percentage of companies' capitalization.
The peculiarity of the S&P 500 index is that for its calculation only shares available for trading that are in free float are taken into account.
An example of calculating the S&P 500 index:
The company with the conditional name "Si" issued 1 million shares at a price of $1. The amount of shares in this case will be equal to 1 million dollars. Let's imagine that the total capitalization of the companies included in the S&P 500 index is 100 million. The share of company "A" is 1%, that is, 0.01.
Eq has 10 million shares of 50 cents each. And its contribution to the index will already be equal to $5 million and a share in the capitalization of 5%. Other companies do the same. It should be added here that the value will change with changes in prices and the number of shares.
The composition of companies changes during the year up to 50 times. Any changes in the composition are announced in advance, a few days before the entry into force.
ListedS& P500 such companies are present:
3M Co.
Abbott Laboratories
Aetna Inc.
com Inc.
american express co
Apple Inc.
AT&T Inc.
Bank of America Corp.
Berkshire Hathaway
Caterpillar Inc.
Cisco Systems
Dell Inc.
Exxon Mobil Corp.
FedEx Corporation
General Electric
Hewlett Packard
IBM
Johnson & Johnson
Kroger Co.
Mastercard Inc.
Microsoft Corp.
News Corporation
Oracle Corp.
Philip Morris International
Sprint Nextel Corp.
Target Corp.
Tyson Foods
United Parcel Service
Visa Inc.
Walt Disney Co.
Yahoo Inc.
Yum! Brands Inc.
To be included in the S&P 500 index, the following conditions must be met:
Interestingly, but many do not know that the index itself cannot be bought, because it represents only a numerical value.
Used for US market analytics as economic indicator. For trading and investment, there are derivatives that correlate with the index.
For example, you can earn with the help of options, (CFD), . For these instruments, the name of the index may differ slightly, for example, US 500.
S&P 500 stock index
Futures on the S&P 500 has been the underlying asset on the Chicago Mercantile Exchange (CME) since 1982.
There are also special funds that completely copy the composition of the S&P 500 in the same proportions. One of the most famous such funds was opened in 1976 - Vanguard 500.
In addition, there is also (Exchange Traded Fund) copying the S&P 500. The most liquid shares of the exchange-traded fund (ETF) based on the S&P 500 are traded under the ticker SPY. On US exchanges, the largest SPDR S&P 500 fund was created on the NYSE in 1993. It very accurately shows the dynamics of the S&P 500. In addition to it, IVW and SSO are very popular on the NYSE. The London Stock Exchange has its own analogue - IUSA(ISHARES S&P 500).
Traders most often analyze the leading companies in each of the 10 sectors that have the most significant impact on the index performance.
As you already understand, when analyzing the index, there is no need and need to analyze all companies separately. If the index reflects the state of the US industrial sector, then S&P 500 index reflects the mood and state of all business in America.
In order to predict the price of an index, you need to look not only at import/export data, production volumes, supply and demand levels, but also the mood of the commodity markets, which can greatly affect the share prices of the leading largest companies in the index.
Since the index reflects the state of the US economy, information about the current state of the economy in the country can be useful in the analysis. These are not only speeches of the heads of companies, but also reports of the Ministries of Finance, heads of the Federal Reserve, and other important departments.
In addition, the index lends itself well, since the dollar has a direct impact on the value of the index. Among the majority of analysts on the index, almost all refer to technical analysis.
Technical analysis is more useful in short-term forecasts of the S&P 500
Many factors can influence the price of an index, so it is best to combine different forms analysis. You can watch at the same time breaking news in the sphere of the country's economy, and to follow important events in the stock market, while using technical analysis.
For example , today a series of news on oil has a beneficial effect on the US dollar. In addition, the current mood of the business sector is experiencing seasonal growth.
The S&P 500 is rising all day long.
To make money on the S&P 500 index, we suggest paying attention to binary options. Only they can give you 70% profit in 10-15 minutes. To make a profit, you must make a predictiondirection of the price in a certain period, for example, will the price rise or fall in the next 15 minutes. If your forecast is justified, you instantly receive a profit known in advance.
Opening we chose the index S&P 500:
Then they indicated the end time of the option for 21:40 (after 13 minutes):
The chart shows how, during the option period, the S&P 500 quote continued to rise, our growth condition was fulfilled and we made a profit:
Interesting Facts:
The advantage of the S&P 500 is that it is highly diversified and covers most of America's industries, but it should be understood that less than 45 large companies make up the majority of the index's value.
If you find an error, please highlight a piece of text and click Ctrl+Enter.
The American stock index SP 500 is one of the three leading indicators of the securities market. This figure includes calculations for the free assets of the top 500 US corporations. The shares serviced by this exchange instrument are securities of companies that differ top performance capitalization. The parameter was introduced to exchange platforms on March 4, 1957. Since then, the SP 500 has become the benchmark for the overall capitalization of the US economy.
The abbreviation SP stands for the abbreviation of the term "free-float" - the volume of securities that are in free circulation, with the exception of shares that make up the assets of company owners, government agencies and registered shareholders. Thus, the SP 500 index reflects the total capitalization of leading companies, which is directly related to the liquidity of shares.
The higher this indicator, the more reliable and promising is the company included in the registry serviced by this parameter. The formation of the stock index is carried out by the well-known analytical firm Standard & Poor’s, which at one time became the founder of this popular exchange instrument.
This capitalization indicator reflects the position of the leading players in the most important sectors of the economy, including world-famous companies in the following ratios;
For obvious reasons, the list of companies is constantly changing - corporations with higher capitalization are crowding out problem projects, whose shares bring losses to traders due to low liquidity and high spreads.
Currently, the top ten stable participants in this rating include such well-known brands as APPLE, Microsoft, Amazon, Facebook, Jonson&Jonson. To be included in this prestigious register, a company must have a total capitalization of at least $6.1 billion and a daily turnover of securities of at least $250,000 per trading day within six months.
| Company | Capitalization in % |
|---|---|
| Exxon Mobil Corp. | 3.1172% |
| Apple Inc. | 2.4098% |
| Microsoft Corporation | 2.0327% |
| Procter & Gamble | 1.8204% |
| General Electric Co. | 1.7028% |
| Intl Business Machines Corp. | 1.6814% |
| Johnson & Johnson | 1.6238% |
| JP Morgan Chase & Co | 1.6101% |
| AT&T Inc. | 1.5419% |
| Chevron Corp. | 1.5091% |
This parameter is calculated using a special formula, the basic value of which is the share of shares intended for free sale and purchase without any restrictions. In most cases, the SP 500 is analyzed in tandem with the famous Dow Jones index, which allows you to do more accurate forecasts for the most current securities. Moreover, the graphs of these two leading stock indices, since 1960, are practically the same, if you do not take into account the more “venerable” age of the Dow Jones indicator (born in 1896), which has collected much more data for analysis.
The maximum value of SP 500 for the summer of 2017 was above 2000, and in the crisis year of 2009 this parameter fell below 1000 positions. The companies included in the basket of this index are guided by international markets with a priority in the segment of information technology, large industrial projects and financial services.
This landmark exchange parameter quite accurately reflects the position of the American economy as a whole. The higher the SP 500, the better the investment climate in the long run. It is enough to evaluate the graph of this indicator over the past 5 years to understand that the economic potential of the United States has approximately doubled over this time. Of course, this does not mean the same increase in the value of corporate securities included in the indexed register. However, in general, we can talk about the positive dynamics of the stock market, which strongly affects the capitalization of shares of leading players.
Monitoring the SP 500 index will be especially useful for all traders, without exception, who want to have up-to-date information about leading American corporations. This stock indicator itself is a fairly popular investment asset that is bought and sold using futures through the Chicago Stock Exchange, where such forecasts are traded almost around the clock.
This project is listed on the New York Stock Exchange investment fund SPDR SP 500, which has the highest liquidity among all instruments exchange market. It is the shares of this fund that are deservedly considered the most promising and reliable investment that allows you to really earn money with minimal risks.
Greetings! What I like about the stock market is its “predictability”. Just yesterday, all analysts unanimously recommended buying "X" and dumping "Y". But then there is a referendum in the UK or a drought in Brazil ... And now you need to buy "Y" and sell "X" as soon as possible.
Don't believe? Let's see how the dynamics of the SP500 index reacts to the latest events. But the S&P500 is considered one of the most predictable benchmarks not only in the US, but also in the world!
Today, the S&P 500 index (stock ticker SPX) includes shares of five hundred US giant companies in leading sectors of the economy. I will not list all the participants, I will name only a few "big names": Oracle, Nike, Procter & Gamble, Coca-Cola, McDonalds, Microsoft, Visa, Xerox and Apple. All in all, it is the most accurate US and business sentiment in America.
Analysts consider its ability to respond almost online to the growth of an industry and the popularity of a particular company as another big plus. For example, in the “dense” 1980, the share of the technology sector in the index was only 9%, and today there are already 21% of such companies in the “ESP”!
The index was developed and launched in 1957 by an international rating agency Standard & Poor's. True, in Russia this company is better known for news like "Standart & Poor's agency downgraded Russia's credit rating to a speculative level."
By this criterion, the S&P 500 does not include, for example, the brainchild of Warren Buffett - Berkshire Hathaway. The fact is that the lion's share of BRK.A's securities is concentrated in the hands of members of the Buffett family, and is not in free circulation. The low liquidity of the stock means that the actions of just two or three investors can quickly change the value of Berkshire Hathaway. And given its serious capitalization, this will affect the price of the entire index as a whole.
Since 1976, the benchmark has shown steady growth (especially in the 1980s and 1990s). In the new 21st century, the index has experienced only two serious declines. The first occurred in the wake of the bursting of the dot-com bubble in the early 2000s, the second - won back the consequences of the 2008 crisis. Since 2010, he has confidently caught and grew every year. It is interesting that since 1985 (that is, for thirty years) it has risen in price by 30 times!
On June 6, 2016, the SP500 index reached its maximum value since the beginning of 2016 - 2109.41 points. The main catalyst is the speech of the head of the Fed in Philadelphia. Janet Yellen said that rates will rise gradually and only on the back of strong macroeconomic data.
What impact did the UK referendum have on him? After the announcement of the results of Brexit, US stock indices fell by 2.5-3%. On June 24, the S&P lost 3.3% in value at once.
And on June 28, S&P Capital calculated losses from “force majeure”: in just two working days, the stock markets lost about $3 trillion. At the same time, $1 trillion. fell just on the five hundredth. And this was the third largest drop in the history of the index. In fairness, I note that not only he collapsed, but also others to.
What will happen next, no one knows yet. Until the market stabilizes, the index can sharply “jump” both in one direction and in the other. And to build at least short-term forecasts, it is necessary that three indicators find a new equilibrium point at once. "Three whales" is the pound sterling rate, the euro rate and securities quotes. And as far as I understand, such a moment will come very soon.
Let me remind you that before the ill-fated referendum, the forecasts for the S&P 500 boiled down to the fact that by the end of 2016 it should rise to 2200.
You cannot buy and sell the S&P 500 index directly - it is just a numerical value that is calculated using a special algorithm. In its pure form, it is needed not by investors, but by analysts.
Derivatives are used for trading. financial instruments, which are based on the index and exactly replicate its movement. Options for such assets:
What are your forecasts for the end of this year? Subscribe to updates and don't forget to share links to the most interesting posts with your friends!
The value of the Standard & Poor's 500 index today. Stock index quotes Standard & Poor's online. Streaming chart of the Standard & Poor's 500 Index (S&P 500) in real time. S&P 500 futures chart online. The time on the chart is Moscow GMT+3.
Daily schedule. One division (one candlestick) is one day.
The timeframe (time interval of quotes on the chart) can be changed independently, in the upper left part of the chart. From 1 minute to 1 month.
There is no need to update the S&P 500 index chart online, the prices come in real time. Standard Poors 500 forecast.
All you have to do is save the page to your favorites so that you can return to it and, if necessary, find out the current values of the S&P 500 index. To save the page to your favorites, press the keyboard shortcut Ctrl + D. Press the Ctrl key and without releasing it press the D key.
(wait a few seconds after the page loads - the graph will appear)
Find any chart you need online:
FOREX CHARTS
CRYPTOCURRENCY CHARTS
CHARTS OF MARKET INDICES
COMMODITY CHARTS
The Standard & Poor's 500 is an index of the 500 largest US companies listed on the New York stock exchange and the NASDAQ (industrial, transportation, financial, technology and utility companies). The S&P 500 index includes companies from all sectors of the economy. Such a complex index, in comparison with the Dow Jones index (30 stocks), more fully shows the general situation in the American market. stock market. The S&P 500 index is also called the barometer of the American economy.
There is also the less popular Standard & Poor’s 100 stock index. It includes the 100 largest US corporations (the S&P 500, as mentioned above, contains the 500 largest joint-stock companies).
The composition of the S&P 500 index is determined by a special committee. The company is evaluated according to several main parameters: market capitalization (preferably from 4 billion dollars), liquidity, legal address (naturally, only the United States), the share of shares in free float (only corporations pass this criterion, they are joint-stock companies), sector of the economy, financial stability, the circulation period for open market and the period of listing on the stock exchange.
And a number of other indexes.
