The Standard & Poor’s 100 (S&P 100) is a stock market index comprised of the 100 large-market-capitalization companies in the Standard & Poor’s 500 (S&P 500). The S&P 100 component stocks are among some of the most widely held stocks in the world. It is also one of the most widely followed stock market indices for many pension funds, mutual funds, and other institutional investors.
The S&P 100 was created on January 1, 1983, and was originally known as the Standard and Poor’s MidCap 100 Index until it was renamed in 2003. The S&P 100 is more focused on large-capitalization companies and is a good benchmark for the overall health of the large, publicly traded company component of the U.S. stock market.
Like the S&P 500, the S&P 100 is capitalization-weighted, meaning that component companies with greater market capitalization (the total market value of all outstanding shares of a given company) make up a larger portion of the index’s weighting compared to those with smaller market capitalization. The index is also adjusted for corporate actions like stock splits, which could alter a given company’s weighting in the index.
The S&P 100 is a market-capitalization-weighted index, with each component company making up a portion of the index’s portfolio depending on their size. The higher the market capitalization, the greater the weight of the company in the index. The total market capitalization is calculated by multiplying the number of outstanding shares of a given company by their current market price.
The S&P 100 includes stocks from the top five industries of the S&P 500 index – Consumer Discretionary, Information Technology, Financials, Health Care and Industrials. The S&P 100 also includes stocks from the S&P 500 sectors of Real Estate, Utilities, Materials, Energy and Consumer Staples. Although the S&P 100 provides a broad sampling of U.S. large-capitalization stocks, it does not include the full weightings from each sector.
The S&P 100 is a widely used index for investors and analysts to compare their portfolio’s performance and measure the overall performance of the U.S. stock market. Most investors consider the S&P 100 a benchmark for evaluating their investments and compare its performance with their portfolio performance.
The S&P 100 is traded as futures and options on the Chicago Mercantile Exchange (CME). It is also used by many mutual funds and ETFs (Exchange Traded Funds) as the underlying benchmark for their fund performance. As a result, investors are able to buy and sell futures and options on the S&P 100 index. This presents a great opportunity for those looking to use strategies such as long/short, pairs trading, and index arbitrage to capitalize on market movements.
The S&P 100 is also a great tool for investors to follow the performance of the broader markets. Its components consist of the top 100 companies in the S&P 500, which means that it captures the performance of most of the largest publicly traded companies in the United States. Additionally, its usefulness is not limited to just individual investors, as the S&P 100 is also used by fund managers, financial institutions, and analysts to evaluate their holdings.
Therefore, the S&P 100 is an invaluable tool to investors and analysts across the globe. It serves as a benchmark for the U.S. stock market performance, helps investors evaluate the performance of their investments, and allows fund managers to compare their fund performance to the broader markets. Additionally, its futures and options make it accessible for those wishing to capitalize on market movements, as well as those seeking a tool to hedge against market volatility.
