In the next section, we will talk about it in more detail.Ī mutual fund is a type of open-ended fund that allows you to pool your money with other investors to be managed by professional investors according to the fund’s strategy. Since then, the index wasn’t calculated based on the total market value of its constituents anymore but only the value of their publicly traded shares, excluding restricted ones.

A last but very important event you need to know is the change of the S&P 500 from a market-value-weighted index to a float-adjusted weighted one in 2005. Today, it’s the largest ETF that tracks the S&P 500 index, with about $360 billion in assets under management. It was listed on the American Stock Exchange under the ticker symbol “SPY” and was actually the first ETF that was traded in the U.S.

More than a decade later in 1993, SPDR S&P 500 Trust, the first ETF that ever tracked the S&P 500, was created. The next year, options trading based on the S&P 500 was made available by the Chicago Board Options Exchange (CBOE). Another accomplishment that further helped the popularity of the S&P 500 was the commencement of futures trading based on the index by the Chicago Mercantile Exchange (CME) in 1982. Past performance doesn’t guarantee future results.

S p 500 index fund