The S&P 500 Index is indisputably the most referenced benchmark for tracking the performance of large-cap U.S. stocks. Each quarter, the S&P 500 Index Committee (a committee within S&P Dow Jones Indices) reassesses which stocks will or will not remain in the index. This typically results in a few stocks entering and a few stocks exiting it.
Being added to the S&P 500 has a variety of benefits. It is often seen as a badge of honor for companies, establishing them as among the most valuable and respected firms in the world. It can also help attract attention from investors who otherwise may not have heard about a particular stock.
