The top 25 stocks in the S&P 500 by weighting represent the largest, most influential companies in the index and are indicative of the performance of the overall stock market and the health of the U.S. economy. The index weights constituents by market capitalization, meaning companies with larger market values carry greater importance than smaller-sized firms.
Key Takeaways
- The S&P 500 is a major stock market index in the U.S. comprising 500 large- and mega-cap publicly traded companies.
- The index’s broad exposure makes it a good gauge of the overall health and performance of the U.S. economy.
- S&P 500 constituent stocks are primarily selected by market cap size, financial performance, and liquidity.
- Information technology leads the S&P 500’s top sector weighting, while real estate has the lowest weighting.
- Investors can use ETFs, mutual funds, and derivatives to gain exposure to the S&P 500 index.
Large-cap technology companies such as Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), and Nvidia Corp. (NVDA) combined hold over $8 trillion in total market-cap, which makes these companies very influential in the overall outlook.
How are Stocks Selected for the S&P 500?
To be included in the S&P 500, a company must meet these criteria:
- It’s a U.S.-based company and trades on a major U.S. exchange.
- It has a market cap of $14.5 billion or more and a float-adjusted market cap of at least 50% of the unadjusted minimum market cap threshold.
- It has reported positive earnings over the most recent quarter along with the past four consecutive quarters.
- It has a float-adjusted liquidity ratio of 0.75 or greater and trades a minimum of 250,000 shares in the previous six months before evaluation.
The S&P 500 reconstitutes each June. Companies removed from the index are not replaced until the next annual reconstitution.
Top Sectors in the S&P 500
The table below lists the S&P 500’s top sectors by weighting as of Dec. 14, 2023. The information technology, healthcare, financials, and consumer discretionary sectors carry a cumulative weight of 64.6%. Conversely, the least weighted sectors include utilities, materials, and real estate, with a combined weight of just 7.3%.
| Top Sectors in the S&P 500 | |
|---|---|
| Sector | Weighting in the S&P 500 |
| Information Technology | 29.1% |
| Financials | 12.9% |
| Health Care | 12.7% |
| Consumer Discretionary | 10.7% |
| Communication Services | 8.6% |
| Industrials | 8.3% |
| Consumer Staples | 6.3% |
| Energy | 4.1% |
| Utilities | 2.4% |
| Materials | 2.4% |
| Real Estate | 2.4% |
Top 25 Companies by Index Weight
Below are the top 25 companies by index weight. The S&P Global website doesn’t disclose constituent weights, but we can use the S&P 500’s proxy exchange-traded fund (ETF), the SPDR S&P 500 ETF Trust (SPY), to cite index weights. Although the ETF’s holdings differ slightly from the underlying benchmark, they closely replicate its weights.
Apart from several minor weighting adjustments among the S&P 500’s top 25 constituents, the only noticeable change from last month is the leading customer management company Salesforce Inc. (CRM) replaced the beverage giant PepsiCo Inc. (PEP) in spot 25.
As of Dec. 15, 2023, here are the largest SPY holdings by weight:
- Apple Inc. (AAPL): 7.29%
- Microsoft Corp. (MSFT): 6.95%
- Amazon.com. Inc (AMZN): 3.44%
- Nvidia Corp. (NVDA): 3.04%
- Alphabet. Inc Class A (GOOGL): 1.98%
- Meta Platforms Inc. Class A (META): 1.87%
- Tesla Inc. (TSLA): 1.76%
- Alphabet Inc. Class C (GOOG): 1.68%
- Berkshire Hathaway Inc. Class B (BRK.B): 1.64%
- Broadcom Inc. (AVGO): 1.25%
- UnitedHealth Group Inc. (UNH): 1.24%
- JPMorgan Chase & Co. (JPM): 1.20%
- Eli Lilly & Co. (LLY): 1.15%
- Visa Inc. Class A (V): 1.03%
- Exxon Mobil Corp. (XOM):1.02%
- Johnson & Johnson (JNJ): 0.94%
- Home Depot Inc. (HD): 0.89%
- Mastercard Inc. Class A (MA): 0.87%
- Procter & Gamble Co. (PG): 0.86%
- Costco Wholesale Corp. (COST): 0.73%
- AbbVie Inc. (ABBV): 0.68%
- Merck & Co. Inc. (MRK): 0.67%
- Adobe Inc. (ADBE): 0.67%
- Chevron Corp. (CVX): 0.66%
- Salesforce Inc. (CRM): 0.64%
Why Are the S&P 500’s Top 25 Stocks Important?
Analyzing the top 25 stocks of the S&P 500 by index weight sheds light on the health of the stock market and broader economy. Since these companies make up a significant part of the index, they reflect the performance of key sectors, major companies, and the benchmark itself. For example, its top three weightings — Apple, Microsoft, and Amazon — represented over 3% of the S&P 500’s return in April this year. Any changes in the index’s top 25 weightings may indicate key shifts in market prospects, which could present investment opportunities or added risks.
How Do I invest in the S&P 500 Index?
Investors can access the S&P 500…
Read More: Top 25 Stocks in the S&P 500 By Index Weight for January 2024