S&P 500: Do it by yourself

[Nym]

Hi,
I would like to do the exercise of understanding the costs of building a portfolio that follow the index vs buy an ETF.

Do you have any link that explain how the S&P is calculated?

in general... any suggestion and link where to learn more is more then welcome

 

[Bob111]

like this

http://www.sectorspdr.com/spdr/composition/?symbol=XLF

 

[Bob111]

http://us.spindices.com/indices/equity/sp-500

 

[Nym]

thanks!

Are you saying that if today I buy 100 stocks of each company contained in the index I will be able to replicate the performance of the index?

 

[Bob111]

in same weightings %

you can do it on paper, to check if it will replicate index or whatever. then check the correlation

but what's the point? i don't get it..if you want SP performance-buy SPY

http://finance.yahoo.com/echarts?s=SPY+Interactive#symbol=spy;range=6m;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

can't get any more correlated than that

 

[Nym]

I know... is a bit creasy but i would like to understand if I can replicate the S&P by myself and see costs and minimum capital.

P.S i can not see your link.

 

[johnnyqpublic]

If you read the Wikipedia article on the S&P 500, it explains how the weightings are calculated.