Glossary

S&P 500

An index of about 500 of the largest US companies. When people say 'the market', they usually mean this.

In plain English

The S&P 500 tracks the combined value of roughly 500 big US companies, weighted by size. It is the standard yardstick for how US stocks did.

Uncle Gary explains

The S&P 500 is the class average. Uncle Gary's portfolio is the one kid who insists he is gifted. Before you believe him, check whether he beats the class average.

Why it matters for your money

It is our main benchmark. If a strategy doesn't beat simply holding the S&P 500, the extra effort isn't worth it.

Where we tested it

Related terms

All glossary terms. Educational content, not financial advice.