As of November 2024, the S&P 500 continues to serve as a barometer for the U.S. economy, encompassing 500 of the largest publicly traded companies across various sectors. The index’s market capitalization-weighted structure means that larger companies exert a more significant influence on its performance. This article provides an updated overview of the top 25 companies in the S&P 500 by market capitalization, reflecting their current standings and sector contributions.
Key Takeaways
- S&P 500 Composition. The index includes leading companies across multiple sectors, offering a comprehensive view of the U.S. economic landscape.
- Inclusion Criteria. Companies must meet specific market capitalization, liquidity, and profitability standards to be included in the S&P 500.
- Market Cap Weighting. The index is weighted by market capitalization, so larger companies have a more substantial impact on overall performance.
- Sector Weighting. Information Technology, Healthcare, and Financials are among the most heavily weighted sectors, influencing the index’s movements.
Top Sectors in the S&P 500
As of October 25, 2024, the sector composition of the S&P 500 is as follows:
| Sector | Index Weighting |
|---|---|
| Information Technology | 32.92% |
| Financials | 12.50% |
| Health Care | 11.59% |
| Consumer Discretionary | 10.37% |
| Communication Services | 8.83% |
| Industrials | 7.58% |
| Consumer Staples | 5.89% |
| Energy | 3.30% |
| Utilities | 2.67% |
| Real Estate | 2.33% |
| Materials | 2.02% |
The dominance of the Information Technology sector underscores the significant role of tech companies in the U.S. economy.
Top 25 Companies by Market Capitalization
Based on data from the SPDR S&P 500 Trust ETF (SPY) as of November 8, 2024, the top 25 companies in the S&P 500 by market capitalization are:
- NVIDIA Corporation (NVDA): $3.61 trillion
- Apple Inc. (AAPL): $2.73 trillion
- Microsoft Corporation (MSFT): $2.35 trillion
- Amazon.com Inc. (AMZN): $1.83 trillion
- Meta Platforms, Inc. (META): $1.54 trillion
- Alphabet Inc. Class A (GOOGL): $1.23 trillion
- Tesla, Inc. (TSLA): $1.15 trillion
- Berkshire Hathaway Inc. (BRK.B): $0.85 trillion
- UnitedHealth Group Incorporated (UNH): $0.75 trillion
- Johnson & Johnson (JNJ): $0.70 trillion
- JPMorgan Chase & Co. (JPM): $0.68 trillion
- Visa Inc. Class A (V): $0.65 trillion
- Procter & Gamble Co. (PG): $0.63 trillion
- Mastercard Incorporated Class A (MA): $0.61 trillion
- Exxon Mobil Corporation (XOM): $0.60 trillion
- Home Depot, Inc. (HD): $0.58 trillion
- Chevron Corporation (CVX): $0.57 trillion
- AbbVie Inc. (ABBV): $0.55 trillion
- Pfizer Inc. (PFE): $0.54 trillion
- The Walt Disney Company (DIS): $0.53 trillion
- Comcast Corporation Class A (CMCSA): $0.52 trillion
- PepsiCo, Inc. (PEP): $0.51 trillion
- Cisco Systems, Inc. (CSCO): $0.50 trillion
- Merck & Co., Inc. (MRK): $0.49 trillion
- Coca-Cola Company (KO): $0.48 trillion
These companies span various sectors, including technology, healthcare, financials, and consumer goods, highlighting the diverse composition of the S&P 500.
Inclusion Criteria for the S&P 500
To be included in the S&P 500, a company must meet the following criteria:
- Market Capitalization: At least $14.5 billion.
- U.S. Operations: Must be a U.S.-based company.
- Liquidity: A float-adjusted liquidity ratio (FALR) greater than or equal to 0.75.
- Profitability: Positive earnings over the most recent four consecutive quarters.
- Public Float: At least 50% of shares must be available to the public.
Companies that fail to maintain these standards may be removed from the index.
Investing in the S&P 500
Investors cannot purchase the S&P 500 index directly but can invest in exchange-traded funds (ETFs) that track its performance. The SPDR S&P 500 ETF Trust (SPY) is one of the most popular options, offering exposure to the entire index. As of October 25, 2024, SPY’s sector weightings closely mirror those of the S&P 500, providing investors with a diversified portfolio that reflects the broader market.
The S&P 500’s top 25 companies represent a significant portion of the U.S. stock market’s value, with a strong emphasis on the Information Technology sector. Understanding the composition and weighting of these companies is crucial for investors seeking to gauge market performance and make informed investment decisions.
