How to Invest in the S&P 500 in 2024

The S&P 500 is an index composed of 500 leading U.S. companies, and it powers some popular index funds.
Tiffany Lam-Balfour
By Tiffany Lam-Balfour 
Updated
Edited by Robert Beaupre Reviewed by Raquel Tennant
A father and child looking at a newspaper together — an abstract representation of financial education, such as learning how to invest in the S&P 500.

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Nerdy takeaways
  • The S&P 500 is a stock market index composed of about 500 publicly traded companies.

  • You cannot directly invest in the index itself.

  • You can buy individual stocks of companies in the S&P 500, or buy an S&P 500 index fund or ETF.

  • Index funds typically carry less risk than individual stocks.

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