Standard & Poor's 500 Index, whose full name is "Standard & Poor's 500 Index", is abbreviated as "S&'s 500 Index". It is a stock index that records 500 listed companies in the United States. Because this stock index is created and maintained by Standard & Poor's Company, it is called "Standard & Poor's 500 Index". Standard & Poor's, founded by Mr. Poole on 1860, is an international authoritative financial analysis institution.

The Standard & Poor's 500 Index was compiled in 1957. Its initial constituent stocks include 425 industrial stocks, 15 railway stocks and 60 public utility stocks, which are calculated according to the prices of most common stocks listed on the new york Stock Exchange.

All companies covered by the Standard & Poor's 500 Index are listed on major exchanges in the United States. Because it contains many companies, its index value is very accurate and has good continuity, which can reflect very extensive market changes. Therefore, it is generally regarded as the ideal target of stock index futures contract and the benchmark of American portfolio index.

Although the Standard & Poor's 500 Index has fluctuated since its establishment, it has been rising on the whole. Its constituent shares are selected by a committee and will be replaced regularly, so the final company will be replaced. The index represents a country's economy, and the rigor of the S&P 500 can fully represent the economic situation of the United States. Therefore, when the economic aggregate increases, the index will rise.

The Standard & Poor's 500 Index is often used as a benchmark for performance comparison, similar to the domestic Shanghai and Shenzhen 300 Index. However, unlike the Shanghai and Shenzhen 300 Index, which is compiled only by market value weight, the Standard & Poor's 500 pays more attention to the proportion of different industries and is committed to selecting "leading" enterprises in various industries. The Standard & Poor's 500 is an excellent index in terms of compilation method and historical performance, which is one of the reasons why it is difficult for active funds to beat it.

The Standard & Poor's 500 index itself is excellent, but it is not easy to improve the income on this basis. In addition, with the maturity of the market and the progress of science and technology, the information advantage and analysis advantage of active fund managers are becoming less and less obvious, and it is of course more and more difficult to obtain excess returns.