Understand the S&P 500 and what it leaves out: test your skills
About 500 large US companies, weighted by size. Widely used as a benchmark — and not the whole market. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Describe what the S&P 500 contains
- Explain cap weighting and concentration
- Know what the index leaves out
- Practice
1. The S&P 500 tracks…
- Practice
2. It is weighted by…
- Practice
3. Which is not in the S&P 500?
- Key idea
4. Which statement best explains "A benchmark, not the whole market"?
- Key idea
5. Which statement best explains "Weighted by size"?
- Key idea
6. Which statement best explains "Check the top 10"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
In a cap-weighted index worth $2 trillion, one company is worth $140 billion. What is its weight?
Show the answer
7%
$140 billion ÷ $2,000 billion = 0.07.
Look up an S&P 500 fund’s top 10 holdings and add up their weights.
More tests in this bootcamp
- See how compound interest builds over time
- Understand index funds, diversification and fees
- What is an ETF? Understand the basket behind a share
- Compare ETFs and mutual funds without the jargon
- Understand the S&P 500 and what it leaves out
- Explore total market funds and check the overlap
- Understand international diversification and currency risk
- Look beyond the story of a sector or thematic fund
- Understand a three-fund portfolio and rebalancing
- Learn dollar-cost averaging: a schedule instead of market timing
- Final exam: Funds and portfolios