Last updated on June 6th, 2021

When you look at the holdings of the S&P 500, you may notice that it actually has 505 holdings! Why are there 505 stocks in this index? Here’s what you need to know:

Why are there more than 500 stocks in the S&P 500?

The S&P 500 tracks the top 500 largest companies in the USA. However, some of these companies have multiple share classes. If the multiple share classes fit the criteria of the S&P 500, they will be included inside the index too. Here’s an in-depth explanation about this phenomenon:

The S&P 500 announced an inclusion of multiple share classes into its indices in 2015

In 2015, the S&P Dow Jones Indices announced that it will include multiple share classes into their S&P 500 index. Moreover, the weightage of these companies will be split among the 2...