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The S&P500 is one of the most attractive index funds amongst many others. This index fund tracks the performance of the top 500 companies in the U.S. The S&P500 also earns on average a whopping 8%-10% yearly return. This makes it one of the most secure and rewarding index funds in investors portfolio’s.
If you’re curious as to which companies are pooled in this index fund I’ll have the entire list for you too.
As more of the public learns about investing and just how easy it is to purchase a stock, more long term assets will get discovered. While cryptocurrency has been extremely popular amongst younger people, at some point it’s time to sit down and start thinking about your long term financial success.
So, is the S&P500 all you need to retire a millionaire? Lets dive in.
Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
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I’m writing this article to further provide knowledge to my readers participating in crypto and short term trading. My mission is to help you succeed financially. And although I’m pro opportunity, I’m also pro on delayed gratification and long term investing.
To start this off, see what this multibillionaire thinks of the S&P500 index fund.
Warren Buffett approves
We all know Warren Buffett for being one of the most successful stock pickers of all time. If you follow him then you’re also aware of how much he loves index funds. Warren has even instructed the trustee of his estate to invest 90% of the money he leaves to his wife in the S&P500. This is a clear sign of what Warren Buffett’s conviction in this particular index fund.
“In my view, for most people, the best thing to do is own the S&P 500 index fund.”
Warren Buffett
The benefits of owning the S&P500 include low commission fees and a diversified pool consisting of the most successful companies in America.
So is the S&P500 enough? In reality, this depends on what how much is enough to you. If Warren Buffett’s conviction towards the S&P500 is strong then it must be right?
Investment calculator: $1 million dollars
If you were to invest only $400 per month with a return of 10% for 30 years, you’d retire a millionaire.
For most retirees this would provide a comfortable living, especially when armoring up with social security benefits.
You can use the calculator here to personalize your contributions and years to grow.
Does the S&P500 pay dividends?
Yes, the S&P500 has paid dividends ranging from 3%-5%. It has never dropped below 3% on average since it’s establishment. I personally hold the S&P500 through Vanguard, ticker symbol VOO. It’s been a great performing index fund long term and I plan on adding to my position yearly.
You may choose to purchase the S&P500 monthly or on a yearly basis. I usually contribute to my portfolio when the market is on discount.
Reinvesting my dividends has allowed me to purchase fractions of the index fund passively. This snowball effect will play a massive role to my portfolios growth long term.
The S&P500 was actually my very first investment in the stock market. Just recently a gentlemen in the AMC community made an eye opening statement. He said if you put $5 million dollars into the S&P500 it would yield you $500,000 in dividend income per year. And this is without contributing a single dollar!
It’s no wonder Warren Buffets instructions are to move 90% of his assets into this index fund. It truly is a wealth builder.
Why does the S&P500 keep going up?
The S&P500 will continue to go up simply because America is always growing. As long as America remains a capitalist country, this index fund is always going to trend upwards.
The S&P500’s performance is going to highly depend on the performance and well-being of our economy. Sure we might stumble across some hiccups but America is always pushing forward. The top 500 companies being tracked by the index fund are always growing. These companies are the best in the world and their primary goal is growth.
I don’t see a moment in time where the S&P500 yields poor performance. Everything we know to be America would have to be wiped out from the face of the planet. And I think we’re doing pretty well to say the least.
Like every stock in the market, there’s no ceiling to just how high the S&P500 can go. As long as there is inflation, and there will always be, this index fund is going to continuously go up forever.
The best time to plant a tree was yesterday. The second best time is today. This Chinese proverb makes so much sense in every aspect of a successful and abundant world. The sooner we start investing in our futures means the better off we will be when we are ready to reap the rewards.
Which companies are in the S&P500?
The S&P500 actually consists of 505 total stocks but 500 total companies. You can skip scroll past this chart but here’s the entire list:
| Apple Inc. |
| Microsoft Corporation |
| Amazon.com Inc. |
| Facebook Inc. Class A |
| Alphabet Inc. Class A |
| Alphabet Inc. Class C |
| Berkshire Hathaway Inc. Class B |
| JPMorgan Chase & Co. |
| Johnson & Johnson |
| Tesla Inc |
| UnitedHealth Group Incorporated |
| Visa Inc. Class A |
| NVIDIA Corporation |
| Home Depot Inc. |
| Procter & Gamble Company |
| Bank of America Corp |
| Mastercard Incorporated Class A |
| Walt Disney Company |
| PayPal Holdings Inc |
| Exxon Mobil Corporation |
| Comcast Corporation Class A |
| Verizon Communications Inc. |
| Adobe Inc. |
| Intel Corporation |
| Pfizer Inc. |
| Cisco Systems Inc. |
| Netflix Inc. |
| Coca-Cola Company |
| AT&T Inc. |
| Abbott Laboratories |
| AbbVie Inc. |
| salesforce.com inc. |
| Merck & Co. Inc. |
| PepsiCo Inc. |
| Chevron Corporation |
| Walmart Inc. |
| Wells Fargo & Company |
| Broadcom Inc. |
| Thermo Fisher Scientific Inc. |
| Accenture Plc Class A |
| McDonald’s Corporation |
| Medtronic Plc |
| NIKE Inc. Class B |
| Costco Wholesale Corporation |
| Texas Instruments Incorporated |
| Citigroup Inc. |
| Danaher Corporation |
| Eli Lilly and Company |
| Linde plc |
| United Parcel Service Inc. Class B |
| Honeywell International Inc. |
| Philip Morris International Inc. |
| Union Pacific Corporation |
| Qualcomm Inc |
| Bristol-Myers Squibb Company |
| Oracle Corporation |
| Amgen Inc. |
| NextEra Energy Inc. |
| Lowe’s Companies Inc. |
| Raytheon Technologies Corporation |
| Caterpillar Inc. |
| Starbucks Corporation |
| Morgan Stanley |
| International Business Machines Corporation |
| Goldman Sachs Group Inc. |
| Boeing Company |
| BlackRock Inc. |
| 3M Company |
| CVS Health Corporation |
| Intuit Inc. |
| General Electric Company |
| Applied Materials Inc. |
| Deere & Company |
| American Tower Corporation |
| Target Corporation |
| Charles Schwab Corporation |
| American Express Company |
| Anthem Inc. |
| Intuitive Surgical Inc. |
| Charter Communications Inc. Class A |
| Lockheed Martin Corporation |
| Booking Holdings Inc. |
| Cigna Corporation |
| Advanced Micro Devices Inc. |
| Altria Group Inc |
| Fidelity National Information Services Inc. |
| ServiceNow Inc. |
| Micron Technology Inc. |
| S&P Global Inc. |
| Mondelez International Inc. Class A |
| Gilead Sciences Inc. |
| Lam Research Corporation |
| Prologis Inc. |
| Stryker Corporation |
| U.S. Bancorp |
| PNC Financial Services Group Inc. |
| Automatic Data Processing Inc. |
| Zoetis Inc. Class A |
| Truist Financial Corporation |
| TJX Companies Inc |
| T-Mobile US Inc. |
| Crown Castle International Corp |
| Duke Energy Corporation |
| CME Group Inc. Class A |
| ConocoPhillips |
| CSX Corporation |
| FedEx Corporation |
| Chubb Limited |
| Activision Blizzard Inc. |
| Capital One Financial Corporation |
| Colgate-Palmolive Company |
| Becton Dickinson and Company |
| General Motors Company |
| Norfolk Southern Corporation |
| Marsh & McLennan Companies Inc. |
| Sherwin-Williams Company |
| Estee Lauder Companies Inc. Class A |
| Southern Company |
| Fiserv Inc. |
| Illinois Tool Works Inc. |
| Air Products and Chemicals Inc. |
| Equinix Inc. |
| Intercontinental Exchange Inc. |
| Dominion Energy Inc |
| Autodesk Inc. |
| Freeport-McMoRan Inc. |
| Progressive Corporation |
| Newmont Corporation |
| Boston Scientific Corporation |
| Northrop Grumman Corporation |
| Global Payments Inc. |
| Humana Inc. |
| Aon Plc Class A |
| Eaton Corp. Plc |
| Edwards Lifesciences Corporation |
| Analog Devices Inc. |
| Illumina Inc. |
| Emerson Electric Co. |
| Vertex Pharmaceuticals Incorporated |
| Waste Management Inc. |
| NXP Semiconductors NV |
| HCA Healthcare Inc |
| Regeneron Pharmaceuticals Inc. |
| Ecolab Inc. |
| Moody’s Corporation |
| Dow Inc. |
| Dollar General Corporation |
| MetLife Inc. |
| Ford Motor Company |
| EOG Resources Inc. |
| KLA Corporation |
| Johnson Controls International plc |
| DuPont de Nemours Inc. |
| Roper Technologies Inc. |
| IDEXX Laboratories Inc. |
| Kimberly-Clark Corporation |
| Schlumberger NV |
| Ross Stores Inc. |
| IQVIA Holdings Inc |
| Exelon Corporation |
| L3Harris Technologies Inc |
| TE Connectivity Ltd. |
| American International Group Inc. |
| General Dynamics Corporation |
| Biogen Inc. |
| T. Rowe Price Group |
| American Electric Power Company Inc. |
| Trane Technologies plc |
| Prudential Financial Inc. |
| Twitter Inc. |
| Digital Realty Trust Inc. |
| Public Storage |
| PPG Industries Inc. |
| Baxter International Inc. |
| Sysco Corporation |
| Centene Corporation |
| Align Technology Inc. |
| Sempra Energy |
| Allstate Corporation |
| Bank of New York Mellon Corporation |
| Simon Property Group Inc. |
| Electronic Arts Inc. |
| HP Inc. |
| Agilent Technologies Inc. |
| Travelers Companies Inc. |
| Microchip Technology Incorporated |
| Constellation Brands Inc. Class A |
| Amphenol Corporation Class A |
| Parker-Hannifin Corporation |
| Walgreens Boots Alliance Inc |
| Marathon Petroleum Corporation |
| eBay Inc. |
| Alexion Pharmaceuticals Inc. |
| Cummins Inc. |
| General Mills Inc. |
| IHS Markit Ltd. |
| O’Reilly Automotive Inc. |
| Cognizant Technology Solutions Corporation Class A |
| Phillips 66 |
| Xcel Energy Inc. |
| Archer-Daniels-Midland Company |
| Marriott International Inc. Class A |
| Aptiv PLC |
| MSCI Inc. Class A |
| Chipotle Mexican Grill Inc. |
| Synopsys Inc. |
| Kinder Morgan Inc Class P |
| Aflac Incorporated |
| Southwest Airlines Co. |
| Yum! Brands Inc. |
| Carrier Global Corp. |
| International Flavors & Fragrances Inc. |
| Discover Financial Services |
| Zimmer Biomet Holdings Inc. |
| Cadence Design Systems Inc. |
| Willis Towers Watson Public Limited Company |
| Motorola Solutions Inc. |
| Stanley Black & Decker Inc. |
| Monster Beverage Corporation |
| Hilton Worldwide Holdings Inc |
| Corteva Inc |
| Corning Inc |
| AutoZone Inc. |
| First Republic Bank |
| TransDigm Group Incorporated |
| DexCom Inc. |
| Paychex Inc. |
| PACCAR Inc |
| McKesson Corporation |
| Williams Companies Inc. |
| Otis Worldwide Corporation |
| Valero Energy Corporation |
| SBA Communications Corp. Class A |
| Public Service Enterprise Group Inc |
| Pioneer Natural Resources Company |
| Welltower Inc. |
| AMETEK Inc. |
| Nucor Corporation |
| D.R. Horton Inc. |
| Cintas Corporation |
| Rockwell Automation Inc. |
| WEC Energy Group Inc |
| Fastenal Company |
| Xilinx Inc. |
| Fifth Third Bancorp |
| State Street Corporation |
| Ameriprise Financial Inc. |
| Delta Air Lines Inc. |
| Mettler-Toledo International Inc. |
| SVB Financial Group |
| Eversource Energy |
| CBRE Group Inc. Class A |
| Equifax Inc. |
| LyondellBasell Industries NV |
| Kraft Heinz Company |
| ANSYS Inc. |
| ResMed Inc. |
| Verisk Analytics Inc |
| Ball Corporation |
| Fortinet Inc. |
| Arthur J. Gallagher & Co. |
| Weyerhaeuser Company |
| Kroger Co. |
| American Water Works Company Inc. |
| AvalonBay Communities Inc. |
| Skyworks Solutions Inc. |
| V.F. Corporation |
| DTE Energy Company |
| Kansas City Southern |
| Consolidated Edison Inc. |
| Best Buy Co. Inc. |
| Laboratory Corporation of America Holdings |
| Lennar Corporation Class A |
| Zebra Technologies Corporation Class A |
| Keysight Technologies Inc |
| Dollar Tree Inc. |
| Old Dominion Freight Line Inc. |
| Maxim Integrated Products Inc. |
| Hershey Company |
| Equity Residential |
| Copart Inc. |
| Synchrony Financial |
| International Paper Company |
| Realty Income Corporation |
| Vulcan Materials Company |
| Northern Trust Corporation |
| West Pharmaceutical Services Inc. |
| Cerner Corporation |
| CDW Corp. |
| Hartford Financial Services Group Inc. |
| ONEOK Inc. |
| Tyson Foods Inc. Class A |
| Fortive Corp. |
| ViacomCBS Inc. Class B |
| United Rentals Inc. |
| Expedia Group Inc. |
| Republic Services Inc. |
| Clorox Company |
| FLEETCOR Technologies Inc. |
| Martin Marietta Materials Inc. |
| Hess Corporation |
| PPL Corporation |
| McCormick & Company Incorporated |
| KeyCorp |
| Carnival Corporation |
| Alexandria Real Estate Equities Inc. |
| Edison International |
| Western Digital Corporation |
| Regions Financial Corporation |
| VeriSign Inc. |
| Church & Dwight Co. Inc. |
| Dover Corporation |
| Entergy Corporation |
| Occidental Petroleum Corporation |
| Tractor Supply Company |
| Ameren Corporation |
| Hewlett Packard Enterprise Co. |
| M&T Bank Corporation |
| Citizens Financial Group Inc. |
| Take-Two Interactive Software Inc. |
| Garmin Ltd. |
| Etsy Inc. |
| Xylem Inc. |
| Teradyne Inc. |
| FirstEnergy Corp. |
| Ventas Inc. |
| Expeditors International of Washington Inc. |
| Gartner Inc. |
| Caesars Entertainment Inc |
| W.W. Grainger Inc. |
| Halliburton Company |
| Seagate Technology Holdings PLC |
| Qorvo Inc. |
| Waters Corporation |
| Generac Holdings Inc. |
| Extra Space Storage Inc. |
| CarMax Inc. |
| Cooper Companies Inc. |
| Celanese Corporation |
| Trimble Inc. |
| Amcor PLC |
| Genuine Parts Company |
| Viatris Inc. |
| Teledyne Technologies Incorporated |
| Nasdaq Inc. |
| Essex Property Trust Inc. |
| Broadridge Financial Solutions Inc. |
| Las Vegas Sands Corp. |
| Akamai Technologies Inc. |
| Baker Hughes Company Class A |
| Royal Caribbean Group |
| Conagra Brands Inc. |
| Albemarle Corporation |
| Teleflex Incorporated |
| Darden Restaurants Inc. |
| CMS Energy Corporation |
| Ulta Beauty Inc |
| Cincinnati Financial Corporation |
| Avery Dennison Corporation |
| Healthpeak Properties Inc. |
| Mid-America Apartment Communities Inc. |
| Ingersoll Rand Inc. |
| United Airlines Holdings Inc. |
| Jacobs Engineering Group Inc. |
| Arista Networks Inc. |
| Omnicom Group Inc |
| AmerisourceBergen Corporation |
| Quest Diagnostics Incorporated |
| NetApp Inc. |
| Pool Corporation |
| Eastman Chemical Company |
| Duke Realty Corporation |
| MarketAxess Holdings Inc. |
| Kellogg Company |
| Domino’s Pizza Inc. |
| AES Corporation |
| Catalent Inc |
| Principal Financial Group Inc. |
| Enphase Energy Inc. |
| IDEX Corporation |
| Cardinal Health Inc. |
| NVR Inc. |
| Raymond James Financial Inc. |
| STERIS Plc |
| Hologic Inc. |
| MGM Resorts International |
| Tyler Technologies Inc. |
| PerkinElmer Inc. |
| Huntington Bancshares Incorporated |
| Charles River Laboratories International Inc. |
| Masco Corporation |
| L Brands Inc. |
| Paycom Software Inc. |
| Boston Properties Inc. |
| WestRock Company |
| NortonLifeLock Inc. |
| Incyte Corporation |
| Textron Inc. |
| FMC Corporation |
| Whirlpool Corporation |
| Devon Energy Corporation |
| DENTSPLY SIRONA Inc. |
| PulteGroup Inc. |
| J.M. Smucker Company |
| Alliant Energy Corp |
| J.B. Hunt Transport Services Inc. |
| Packaging Corporation of America |
| Fortune Brands Home & Security Inc. |
| Brown-Forman Corporation Class B |
| Evergy Inc. |
| Lumen Technologies Inc. |
| Citrix Systems Inc. |
| American Airlines Group Inc. |
| Diamondback Energy Inc. |
| LKQ Corporation |
| Westinghouse Air Brake Technologies Corporation |
| Leidos Holdings Inc. |
| UDR Inc. |
| Monolithic Power Systems Inc. |
| Snap-on Incorporated |
| CenterPoint Energy Inc. |
| PTC Inc. |
| Wynn Resorts Limited |
| Loews Corporation |
| Howmet Aerospace Inc. |
| C.H. Robinson Worldwide Inc. |
| Hormel Foods Corporation |
| Advance Auto Parts Inc. |
| Interpublic Group of Companies Inc. |
| Bio-Rad Laboratories Inc. Class A |
| Quanta Services Inc. |
| Lincoln National Corporation |
| Live Nation Entertainment Inc. |
| Allegion PLC |
| Fox Corporation Class A |
| ABIOMED Inc. |
| Tapestry Inc. |
| Atmos Energy Corporation |
| Mohawk Industries Inc. |
| Universal Health Services Inc. Class B |
| Mosaic Company |
| Iron Mountain Inc. |
| Host Hotels & Resorts Inc. |
| Hasbro Inc. |
| Cboe Global Markets Inc |
| BorgWarner Inc. |
| Jack Henry & Associates Inc. |
| Penn National Gaming Inc. |
| CF Industries Holdings Inc. |
| Lamb Weston Holdings Inc. |
| Henry Schein Inc. |
| F5 Networks Inc. |
| Pentair plc |
| W. R. Berkley Corporation |
| Everest Re Group Ltd. |
| Comerica Incorporated |
| DISH Network Corporation Class A |
| Newell Brands Inc |
| Norwegian Cruise Line Holdings Ltd. |
| Molson Coors Beverage Company Class B |
| Western Union Company |
| News Corporation Class A |
| Invesco Ltd. |
| Globe Life Inc. |
| Robert Half International Inc. |
| Regency Centers Corporation |
| Campbell Soup Company |
| Nielsen Holdings Plc |
| NiSource Inc |
| Pinnacle West Capital Corporation |
| Zions Bancorporation N.A. |
| DXC Technology Co. |
| A. O. Smith Corporation |
| Marathon Oil Corporation |
| Franklin Resources Inc. |
| Assurant Inc. |
| Discovery Inc. Class C |
| Kimco Realty Corporation |
| DaVita Inc. |
| Alaska Air Group Inc. |
| Huntington Ingalls Industries Inc. |
| Sealed Air Corporation |
| Juniper Networks Inc. |
| NRG Energy Inc. |
| People’s United Financial Inc. |
| PVH Corp. |
| APA Corp. |
| Federal Realty Investment Trust |
| Rollins Inc. |
| Leggett & Platt Incorporated |
| Cabot Oil & Gas Corporation |
| IPG Photonics Corporation |
| Vornado Realty Trust |
| Gap Inc. |
| Hanesbrands Inc. |
| NOV Inc. |
| Ralph Lauren Corporation Class A |
| Unum Group |
| Perrigo Co. Plc |
| Fox Corporation Class B |
| Discovery Inc. Class A |
| HollyFrontier Corporation |
| Under Armour Inc. Class A |
| Under Armour Inc. Class C |
| News Corporation Class B |
These 10 stocks now make more than 21% of the index
- Apple: 3.924345%
- Microsoft: 3.300070%
- Amazon.com: 2.947227%
- Facebook: 2.049400%
- Berkshire Hathaway Class B: 1.553777%
- JPMorgan Chase: 1.520523%
- ExxonMobil: 1.500398%
- Alphabet Class C: 1.469428%
- Alphabet Class A: 1.467526%
- Johnson & Johnson: 1.443485%
The S&P500 is perfect for long term investing
If you believe in the future of America and in most of these companies in the index fund then the S&P 500 is a great choice for you. Hold this index fund long term to get the most out of it.
New retail investors are beginning to learn the power of investing. Compound interest can snowball your investments and grow your portfolio overtime. So, should you invest in the S&P500?
Absolutely. This long term index fund is a safe investment primarily due to it’s diversified assets and innovative companies. The S&P500 has proven to always be growing and I can’t wait to see where this index fund is in the decades to come.
Before you go
Let me know if you’re investing in any of these individual stocks in this index fund in the comments section below. I’d love to hear what you love about these companies and why you believe their further potential and growth.
You can support the blog on Patreon. Also, don’t forget to join Frank’s Forum where we discuss momentum stocks and crypto too!
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Well, yes, since it’s establishment the dividend average has not dropped below 3%, but this is very different than your statement that it has “never” dropped below 3%. Also, over the past 30 years it has consistently been below 3%. This is a very different than what allude to in your article, which is why I am confused and decided to comment.
https://www.investopedia.com/articles/markets/071616/history-sp-500-dividend-yield.asp#recent-and-historical-yields
Love your attention to detail – I will revise it to reflect since it’s establishment
Hi there! You said, “[T]he S&P500 has paid dividends ranging from 3%-5%. It has never dropped below 3%.” Can you please cite this? My (very brief) research shows that it has paid below 3% since 2000. Am I looking at the wrong thing? https://www.multpl.com/s-p-500-dividend-yield
That it’s been below 3% of course but the median detailed on your link shows 4%. If you’re talking about average it’s definitely not below 3-5%. That’s why the median is 4%