Indexy a trhy
S&P 500: what the index contains and why it sits at the heart of portfolios
Key takeaways
- S&P 500 groups roughly 500 of the largest publicly traded companies in the USA.
- It is weighted by market capitalisation, so a handful of giant firms carry a large weight.
- Historically it has delivered roughly 7–10 % per year nominally over the long run, but with large swings.
- As a Czech investor you can buy it through Irish UCITS ETFs (e.g. CSPX accumulating, VUSA distributing).
- The main current risk is concentration in a few technology giants.
S&P 500 is the world's most-watched equity index and the natural core of most passive investors' portfolios. But what exactly does it contain?
What the index contains
The index groups roughly 500 of the largest US companies across sectors — technology, healthcare, financials, consumer goods, industrials. It is not mechanically the "500 biggest"; a committee decides inclusion based on rules covering size, liquidity and earnings history. Together, the index covers around 80 % of the value of the US equity market.
How it is weighted
S&P 500 is weighted by market capitalisation — the bigger the company, the larger its share. The consequence: several of the largest technology firms (Apple, Microsoft, NVIDIA, Alphabet, Amazon and others) together make up a large portion of the index. That is both a strength (you let winners grow) and a risk (concentration at the top).
What returns and risks it carries
Over the long run, S&P 500 has returned roughly 7–10 % per year nominally (with dividends reinvested), but the journey was far from smooth — the index repeatedly fell 30–50 % and then recovered. In the short term it is a bumpy ride; over the long term it is an engine of growth.
How to buy it from the Czech Republic
American ETFs (SPY, VOO) cannot be bought in the EU; instead you use their Irish UCITS equivalents: CSPX (accumulating, tax-efficient for growth) or VUSA (distributing, pays a dividend). Both have very low fees. You can find them in the ETF overview; a separate article explains why the Irish domicile matters.
FAQ
How many companies are in S&P 500?
Roughly 500 of the largest US companies. The exact composition changes continuously according to the index rules and committee decisions.
What is the long-term return of S&P 500?
Historically roughly 7–10 % per year nominally with dividends reinvested, but with large swings. Past returns do not guarantee future results.
How can I buy S&P 500 from the Czech Republic?
Through Irish UCITS ETFs such as CSPX (accumulating) or VUSA (distributing) via a standard broker.
Is S&P 500 sufficiently diversified?
It covers 500 companies, but today it is concentrated in a few giants. Anyone wanting broader diversification can add a global index.