The Weightage of the S&P 500 Index is one of the critical criteria that any investor should be aware of. Weightage benefits are: (1) Understanding which sector or company impacts the index most (2) Helps investors to invest in high-weight companies called Blue Chip Stocks so they can make good returns on it.
The index is calculated based on the free-float market capitalization of the index constituents and covers almost 75% of the total US stock market. The contribution or impact of every company in the S&P 500 is equal to its weightage which is given below.
S&P 500 Companies By Weight (2022)
The top 10 holdings, with a combined value of about $14 trillion, account for about 30% of the S&P 500’s capitalization. These are good starting points for investors who want to know how the broader market moves.
S&P 500 Sector Weightage (2022)
As of March 2022, the S&P 500 sector weightage by total market capitalization was: Energy (4.8%), Industrials (7.8%), Technology (27.1%), Consumer Durable (10.9%), Consumer Staples (8.8%), Health Care (14.4%) and Financials (11.2%).
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Recent Changes in S&P 500
|DATE||COMPANY ADDED||COMPANY REMOVED|
|4 April 2022||Camden||People’s United Financial|
|2 Mar 2022||Molina Healthcare||IHS Markit|
|15 Feb 2022||Nordson||Xilinx|
|3 Feb 2022||—||Gap|
|2 Feb 2022||Constellation Energy||—|
|20 Dec 2021||Signature Bank||Leggett & Platt|
|20 Dec 2021||SolarEdge||Hanesbrands|
|20 Dec 2021||FactSet||Western Union|
|14 Dec 2021||EPAM Systems||Kansas City Southern|
|20 Sep 2021||Match Group||Perrigo|
|20 Sep 2021||Ceridian||Unum|
|20 Sep 2021||Brown & Brown||Nov|
|30 Aug 2021||Bio-Techne||Maxim Integrated|
|21 June 2021||Moderna||Alexion Pharmaceuticals|
|4 June 2021||—||HollyFrontier|
|3 June 2021||Organon & Co.||—|
|14 May 2021||Charles River Laboratories||FLIR Systems|
|20 April 2021||PTC||Varian Medical Systems|
|22 Mar 2021||NXP||Flowserve|
|22 Mar 2021||Penn National Gaming||SL Green Realty|
|22 Mar 2021||Generac Holdings||Xerox|
|22 Mar 2021||Caesars Entertainment||Vontier|
|12 Feb 2021||Monolithic Power Systems||TechnipFMC|
|21 Jan 2021||Trimble||Concho Resources|
|7 Jan 2021||Enphase Energy||Tiffany & Co|
How to Invest in S&P 500?
Many investors search stock weightage query for index investment propose, divide their portfolio to high weight stocks, and buy the stocks accordingly. However, the weight of every stock changes regularly.
Following that change is next to impossible for the general investor. To solve this problem, investors can buy S&P 500 ETFs or Index funds, which allow them to invest in one click without any complication.