The S&P 500® Index is a leading U.S. large-cap equity benchmark measuring the performance of 500 of the largest U.S. companies. It is the most widely tracked equity benchmark globally, used as the primary performance reference for U.S. stock market performance by individual investors, institutions, and the financial media.

See the comprehensive definition at S&P 500 Index for a full treatment of the index’s history, construction, concentration characteristics, and appropriate use as benchmark versus investment target.

For investors focused on asymmetric risk management, the S&P 500’s full-cycle history is a stark reminder of the mathematics of loss. An investor who experienced the 50% drawdowns of 2000-2002 and 2008-2009 without any risk management would have watched their portfolio spend years recovering to prior highs — time that could have been spent compounding at a higher rate with active downside management. The S&P 500 is an excellent benchmark; it is a suboptimal investment target for investors who cannot afford, or need not accept, full unmanaged equity market risk.