1You cannot buy the index itself
You buy a fund that tracks it. Many index mutual funds and ETFs hold the same 500 companies.
2Big companies matter most
Because it is weighted by size, a handful of the largest companies make up a large share of the index.
3It is not the whole market
It leaves out smaller US companies and all non-US companies. Total market and international funds cover those.
4It goes down too
The index has had years with large losses. Money you need within a few years usually belongs in savings.
How to do it in Oaktally
An index fund is one holding. Oaktally shows its value beside your cash and debts.
- Add the accountAdd your brokerage account and its value.
- Track holdings on PremiumAdd the funds or stocks you own; Premium prices them with each market close.
- See it in your net worthHome counts it beside your cash and debts.
Frequently asked questions
Is the S&P 500 the same as the Dow?
No. The Dow Jones Industrial Average tracks 30 large companies and is weighted by share price, not company size.
How often does the S&P 500 change?
The committee adds and removes companies as they grow, shrink or are bought.
Further reading
S&P Dow Jones Indices: S&P 500 ↗Educational examples, not individual financial advice.
