The S&P 500 Index
The Standard & Poor’s 500 index, also known as the S&P 500, is one of the most popular indexes used for trading or benchmarking the US equities market.
Traders and fund managers tend to prefer the S&P 500 Index to the Dow Jones because it represents more US shares, particularly the more liquid issues with a market capitalization of above $3 billion.
The index is driven by the prices of the 500 shares that comprise it. To be included, a company must have at least half of its value in shares listed on a US exchange. Because of the way the index is calculated, larger companies will have more influence over its behaviour than smaller ones. Companies that feature on the S&P 500 Index include Apple NASDAQ:AAPL, Microsoft NASDAQ:MSFT, Exxon NYSE:XOM and Johnson & Johnson NYSE:JNJ.
Because the index is spread across 500 companies, the S&P 500 will tend to be less volatile than narrower indexes that are composed of fewer shares. However, a large percentage of it’s weighting is taken up by a small number of large tech stocks, such as Apple, Microsoft, Google, Amazon and Nvidia that dominate performance. This has generally led in recent times to stellar performance of the Index, but investors should be aware that any news or government policy that affects sentiment of these tech stocks may have a significant bearing on its performance.
We have seen in the past that during times of particular crisis, the S&P 500 can exhibit high volatility levels, such as in 2002, when the index lost 23% as a consequence of the dot com crash. Similarly, in 2008, during the financial crisis, it lost over 38% of its value, then bounced back with a 23% gain in 2009.
Still, as a stock market index, the S&P 500 is a lot less volatile than many other markets, including individual shares, currencies and commodities.
The S&P 500 Index features many of the world’s largest and best known brands. For investors that prefer the relative security of owning an index of US shares, rather than individual stocks, the S&P 500 Index is a great way to get exposure to the US equity market.
Investors should be aware that many of the largest tech stocks feature prominently in a range of funds and investment trusts and should be mindful not to over-expose their portfolio to these tech stocks in order to hold an appropriately diversified range of stocks.
The S&P 500 Index has seen significant growth in recent years on the back of the stellar performance of some it’s large tech stocks. However, historically, the Index has provided excellent returns since its inception in 1957, delivering an annualized average return of approximately 10.26%, including reinvested dividends.
Its performance reflects the overall economic growth and corporate profitability in the U.S but investors should be mindful that the index can be subject to significant variability through to economic cycles, inflation, and market timing. But, despite these fluctuations, long-term investments in the S&P 500 have generally yielded positive returns.
The S&P 500 Index is widely available in a range of wrappers, the most popular of which are a future or options contract, an Exchange Traded Fund, or as a Contract for Difference.
You can also explore any number of index-linked investment products that will track the S&P 500. If you’re a UK resident, you’re able to trade the index through a tax-free spread betting broker.
Investors can use Exchange Traded Funds or ETFs to track the performance of the S&P 500 index at a relatively low cost to other types of funds such as managed funds and investment trusts. These ETFs provide cost effective exposure in a portfolio to the performance of the index, with the added benefit of dividends which can either provide an income for investors, or be re-invested into more shares through an accumulation ETF. This means that investors will enjoy the effects of compounding over the longer term.
Invest in the S&P 500 Index with these ETF platforms
| Provider | Deposit | Fees | ISAs | Investment Options |
|---|---|---|---|---|
eToro | no initial deposit | no platform fee | Stocks & Shares ISAs | UK Shares Funds ETFs Bonds Robo Advisor |
| Maximize your £20,000 annual tax-free allowance with the eToro ISA powered by Moneyfarm – voted UK's Best Investment ISA 2024. Choose between fully managed portfolios created by experts or DIY investing where you handpick your own assets, or combine both approaches. Enjoy dedicated expert guidance via chat, phone, email or video call. Fast, free ISA transfers handled entirely for you. Your ISA contributions boost your eToro Club status, unlocking exclusive offers and VIP perks. Your capital is at risk. Moneyfarm is authorised and regulated by the FCA as an Investment Advisor and Investment Management Company – Authorisation no. 629539 | ||||
IG | £500 initial deposit £50 monthly minimum | £96 platform fee £8.00* per trade | Stocks & Shares ISAs | UK Shares Non-UK Shares Funds ETFs Robo Advisor |
| Trade 3+ stocks per month for active trader cost of £3.00 on UK stocks. Clients holding investments will be charged a platform fee of £8 per month which can be offset against a trade over the period. IG's Smart Portfolio's are a low cost option for those who are unsure where to invest their money. | ||||
Interactive Brokers | £1 initial deposit | no platform fee £3 per trade | Stocks & Shares ISAs Junior ISAs | UK Shares Non-UK Shares Funds ETFs |
| £3 / €3 per trade for Western European stocks, with no added spreads, account minimums or platform fees. Pricing on US stocks starts at just USD 0.005 per share. There is a minimum monthly activity fee of £3 | ||||
Charles Stanley Direct | £500 initial deposit £50 monthly minimum | 0.30% platform fee £10 per trade | Stocks & Shares ISAs Junior ISAs | UK Shares Funds ETFs Bonds |
| Minimum charge of £5, maximum of £50 per month for all individual accounts held with Charles Stanley Direct. £10 transaction fee on shares, £4 for funds. £50 of trading credits available every six months from October 2024. | ||||
Interactive Investor | no initial deposit £25 monthly minimum | £59.88 platform fee £3.99 per trade | Stocks & Shares ISAs Junior ISAs | UK Shares Non-UK Shares Funds ETFs Bonds Robo Advisor |
| £4.99 monthly platform fee for account values up to £50,000. £11.99 per month for account values above £50,000. You can also choose from 10 managed investment portfolios | ||||
AJ Bell | £500 initial deposit £25 monthly minimum | 0.25% platform fee £9.95* per trade | Stocks & Shares ISAs Junior ISAs Lifetime ISAs | UK Shares Non-UK Shares Funds ETFs Bonds Robo Advisor |
| Trade 10+ stocks per month for active trader cost of £4.95 (reducing to £3.50 from 1st April 24). Additional charge of up to £3.50 per month on stocks and shares. Up to 0.25% platform fee on Funds in addition to £1.50 transaction cost. | ||||
Aviva | £500 initial deposit £25 monthly minimum | 0.40% platform fee £7.50 per trade | Stocks & Shares ISAs Junior ISAs | UK Shares Funds ETFs Robo Advisor |
| Platform fee for Shares, ETFs and Investment Trusts of no more than £45 per year. Platform fees reduce on investments over £50,000. Choose from a range of ready-made funds based on your preferred risk level or from Aviva's full range of 2,000 funds. | ||||
Barclays | £50 initial deposit £25 monthly minimum | 0.25% platform fee £6.00 per trade | Stocks & Shares ISAs | UK Shares Non-UK Shares Funds ETFs Bonds Robo Advisor |
| 0.25% platform fee on investments up to £200,000 and 0.05% on investments above £200,000 | ||||
Bestinvest | £100 initial deposit £90 monthly minimum | 0.4% platform fee £7.50 per trade | Stocks & Shares ISAs Junior ISAs | UK Shares Funds ETFs Robo Advisor |
| Platform fees reduce to 0.2% for ISA transfers over £250,000. There are no fees for fund transactions. BestInvest provide four ready made portfolios designed for inexperienced investors. | ||||
Chelsea Financial Services | £1 initial deposit £10 monthly minimum | 0.60% platform fee | Stocks & Shares ISAs Junior ISAs | Funds Robo Advisor |
| Investors can choose from 5 EasyISA portfolio's or build their own portfolio from a range of 2,500+ funds | ||||
evestor | £1 initial deposit | 0.53% platform fee | Stocks & Shares ISAs | Funds Robo Advisor |
| Clients can choose from three managed portfolios, low medium or high risk | ||||
Fidelity International | £1000 initial deposit £50 monthly minimum | 0.35% platform fee £10.00 per trade | Stocks & Shares ISAs Junior ISAs | UK Shares Non-UK Shares Funds ETFs Bonds |
| Platform fee of 0.35% or flat £45 fee for holdings below £7,500. Share dealing costs relate to ETFs and Investment Trusts. ISA prize draw for new account holders that deposit a lump sum before 31 March 2020 | ||||
Halifax | £2000 initial deposit £100 monthly minimum | £12.50 platform fee £12.50 per trade | Stocks & Shares ISAs | UK Shares Non-UK Shares Funds ETFs Bonds Robo Advisor |
| £12.50 platform fee for holding an ISA account. Choose from 2,000+ funds or three ready-made portfolio's with a £2,000 lump sum or £100 monthly payment | ||||
Hargreaves Lansdown | £100 initial deposit £25 monthly minimum | 0.45% platform fee £11.95* per trade | Stocks & Shares ISAs Junior ISAs Lifetime ISAs | UK Shares Non-UK Shares Funds ETFs Bonds Robo Advisor SIPP |
| Trade 10+ stocks per month for active trader cost of £8.95 or 20+ at £5.95. Additional charge of up to £45 per annum on stocks and shares. There's no dealing charge for buying or selling funds but you'll pay a holding fee of up to 0.45% per annum. Ready-made portfolios are available for investors that are unsure where to invest their money for an additional fee. | ||||
Legal & General | £100 initial deposit £20 monthly minimum | 0.61% platform fee | Stocks & Shares ISAs Junior ISAs | Funds Robo Advisor |
| Choose from five ready-made funds or create your own portfolio by picking from 40 investment funds | ||||
Moneyfarm | £1 initial deposit | 0.75% platform fee | Stocks & Shares ISAs | Funds Robo Advisor |
| Answer a series of questions and Moneyfarm will match your appetite for risk with one of their seven investment portfolios | ||||
Nationwide | £20 initial deposit | 0.56% platform fee | Stocks & Shares ISAs Junior ISAs | Funds |
| Choose from four funds managed by Aegon | ||||
OneFamily | £500 initial deposit £50 monthly minimum | 1.50% platform fee | Stocks & Shares ISAs Junior ISAs Lifetime ISAs | Funds |
| One fund available in a Stocks and Shares ISA: The Ethical Equity Stocks and Shares ISA is invested in the Family Charities Ethical Trust, which invests mainly in FTSE4Good UK 50 companies | ||||
Saxo Markets | £1 initial deposit £1 monthly minimum | no platform fee £3.00 per trade | Stocks & Shares ISAs | UK Shares Non-UK Shares Funds ETFs Bonds |
| Trade from £3 on UK stocks, $1 on US Stocks with no platform fee. Currency conversion fee of 0.25%. | ||||
Scottish Friendly | £100 initial deposit £10 monthly minimum | 1.50% platform fee | Stocks & Shares ISAs Junior ISAs | Funds Robo Advisor |
| Choose from 3 Investment ISA products; My Easy Choice, My Choice and My Prime. Investors can assign parts of their investment to separate accounts for specific purposes | ||||
Vanguard | £500 initial deposit £100 monthly minimum | 0.15% platform fee | Stocks & Shares ISAs Junior ISAs | Funds ETFs Robo Advisor |
| Our cheapest featured platform with fees capped at £375 per year. However, a limited choice choice of 75 funds available | ||||
Virgin Money | £1 initial deposit | 1% platform fee | Stocks & Shares ISAs | Funds Bonds Robo Advisor |
| Clients can choose between 5 investment funds. A sixth Climate Change Fund is available at the higher 1.3% annual fee with minimum deposit of £500 | ||||
Wealthify | £1 initial deposit £1 monthly minimum | 0.60% platform fee | Stocks & Shares ISAs Junior ISAs | Funds Robo Advisor |
| No minimum deposit or monthly contribution. Investors have access to 10 funds which includes 5 ethical funds designed to suit your preferred level of risk. | ||||
Willis Owen | £25 initial deposit £25 monthly minimum | 0.40% platform fee £7.50 per trade | Stocks & Shares ISAs Junior ISAs | UK Shares Funds ETFs Robo Advisor |
| Trade Shares, ETFs and Investment Trusts for £7.50. Choose from 2,500+ Funds or ready-made portfolios based on 3 levels of risk | ||||
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To trade the S&P 500 Index using futures, CME Group has an extensive list of products based on the price of the Index. Traders can open a futures enabled trading account with an approved broker (see below) to trade CME Group futures. You can learn how to trade futures on equity Index’s like the S&P 500 by taking this short course which is completely free and takes less than 40 minutes to complete, and there’s loads more free educational courses for futures here too. Once you are ready to trade futures, take a look at the brokers listed below or find a full list of futures brokers here to get you started.
- Read our beginner’s guide to Futures
- Find out more about Options
- Take our free online Equities Indices Trading Course
Trade the FTSE 250 with these Futures Brokers
| Broker | Minimum Deposit | Markets | Products |
|---|---|---|---|
| Interactive Brokers | $0 | Bonds Commodities Currencies Indices Stocks & Shares | CFDs ETFs FX Futures ISA Stocks & Shares |
| Interactive Brokers is one of the world’s leading futures brokers with the ability to offer direct market access to a range of securities. With previous personal experience of trading with this broker, The Armchair Trader knows that they offer excellent platform stability, an excellent range of markets, and solid customer support | |||
Tickmill | £100 | Bonds Commodities Currencies Indices Stocks & Shares | CFDs Futures |
| Tickmill is an established, regulated broker. With a focus on platform technology, fast reliable trading and low costs, it is a good choice for the experienced high volume trader. | |||
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For traders looking for short term exposure to the S&P 500 Index, Contracts for Difference or CFDs can be a useful option to track the index. CFDs provide an opportunity for traders to make trades on a rising or falling index offering flexibility based on the sentiment withn US markets. Traders should be aware that CFDs are leveraged trades which eans that successful trading profits can be magnified, but conversely, so will losses. It is important to get to grips with CFD trading before you commit real money. UK investors may prefer to trade with a spread betting provider where any gains are tax free.
Trade the S&P 500 with these CFD brokers
| Broker | Minimum Deposit | Markets | Products |
|---|---|---|---|
Pepperstone | £0 | Commodities Currencies Indices Stocks & Shares | CFDs FX Spread Betting |
| With a strong focus on the trading experience, industry leading technology, low costs and award-winning client support, we feel that Pepperstone is a good option for the more established high volume day trader. | |||
FP Markets | $100 | Commodities Currencies Indices Stocks & Shares | CFDs FX |
| FP Markets is an established ASIC, CySEC FSP and CMA regulated broker. They offer access to the industry leading MetaTrader platforms and provide pricing directly from the market meaning fast execution and transparent pricing. A 24/7 multilingual client support service has won recognition through the highly respected Investment Trends awards. | |||
Capital.com | £20 | Commodities Currencies Indices Stocks & Shares | CFDs FX Spread Betting |
| Capital.com’s intuitive, user-friendly platform, round-the-clock support and seamless integration with MT4 and TradingView make it a worthy contender for beginner and experienced traders alike. The broker boasts an ‘Excellent’ Trustpilot rating. Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | |||
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S&P 500 Index ETFs
 | S&P 500 | S&P 500 LON:WSPX / USD |    |
| S&P 500 3x Daily Leveraged | S&P 500 LON:3USL / USD | |
| S&P 500 3x Daily Short | S&P 500 LON:3USS / USD | |
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Latest S&P 500 Index News
Is the US equity market giving investors reason to be fearful?
There has been a change in sentiment regarding the US equity market over the last few months, says Julian Wheeler, a partner at Shard Capital.
Data vacuum to persist as US Government shutdown continues
Markets struggled for direction as the governement shutdown continued. Another light data docket awaits this week as politics remains in focus
Equity bulls emerge from the shadows and the Gold rally is broadening
Markets were calm on Friday as data failed to move the needle. This week, a busy docket awaits, headlined by the latest US jobs report.
Next three days could drive US market direction for rest of 2025
Global investors are entering a decisive stretch as a confluence of market-moving events in the US unfolds over just three days.
The S&P 500: clear and present danger for investors in US stocks
With many analysts starting to worry that the S&P 500 is looking overvalued, how can investors protect themselves from downside risks?
S&P 500 rally rolls on amid deafening headline noise
Stocks hit new records on Friday while the dollar continued to soften, and gold lost its shine. A busy, but holiday-shortened week now awaits
Tariff noise ramps up once more
The volume of tariff noise has been turned up yet again. This week, a busy docket awaits, highlighted by Friday’s US jobs report.
US policy continues to support S&P 500 volatility
Tariff uncertainty is back after Trump’s weekend to-and-fro on EU import levies, but a weekend U-turn sees dip buyers back
Coinbase promotion: is crypto now a part of the establishment?
Coinbase has joined the S&P 500 index, a clear sign that crypto has broken into the financial establishment’s inner sanctum
The prospect of new all-time highs in global equity indices?
The US fiscal position gets more attention, with the House Budget Committee having a second attempt at passing Trump’s reconciliation bill
