Q&A with Apricot: what is S&P 500 and how can one invest in it ?

Ever stumbled upon headlines mentioning the “S&P 500” or overheard conversations about it in financial circles? If you’re a newcomer to the world of investments, you might be wondering: what exactly is the S&P 500, and how can I become a part of it? Don’t worry, we’ve here to help you explore.

Understanding the S&P 500

The S&P 500, short for the Standard & Poor’s 500, is a stock market index that measures the stock performance of 500 of the largest companies listed on stock exchanges in the United States. Sounds confusing? Imagine a team of the top 500 players in the U.S. stock market, like Apple, Amazon, and Microsoft, etc. The S&P 500 is like a scoreboard keeping track of their stock performance. It’s not a company itself, but rather a benchmark. It’s often considered an indicator of the overall health of the U.S. stock market and, by extension, the broader economy.

Why are investors interested in S&P 500?

Over the past five years (as of January 25 2024), the S&P 500 has grown by 82.70% . While past performance doesn’t guarantee future success, it paints a promising picture.

Can you “Buy” the S&P 500 ?

Not quite. Unlike individual stocks, you can’t directly purchase the S&P 500. Instead, investors often turn to financial instruments that track its performance such as Exchange-Traded Funds (ETFs). Think of these ETFs as baskets of stocks, holding tiny pieces of each company in the S&P 500 index. ETFs are managed by investment professionals for which they charge a small fee. By investing in a S&P 500 ETF, investors essentially own a small share of each of those 500 companies, while professionals managing the given ETF will automatically adjust the portfolio as the index changes.

Investment possibilities with Apricot 

Apricot provides investment tools for both seasoned and beginner investors.

Through our app clients invest in ETFs that track S&P 500 such as SPY, VOO* and others.

More experienced and advanced investors

•     Use our app to invest in leveraged ETFs, such as UPRO*
•     Reach out to our brokers at brokerage@apricotcapital.am to invest in more complex instruments such as S&P 500 derivatives (options and futures)

Interested in adding such instruments to your portfolio? 

Open a brokerage account  for free and download our Apricot app from the App Store and Google Play.

It’s important to remember that investments are subject to market fluctuations and carry inherent risks. Consider your financial goals and risk tolerance before investing.

Apricot Capital is regulated by the Central bank of Armenia.

*The examples in this text are for illustrative purposes only. This does not constitute investment advice or a recommendation to buy or sell any specific investment instrument. The past performance mentioned in this text is not indicative of future results.