The Dow Jones and S&P 500 are stock market indices that track overall market performance. The Dow Jones is made up of 30 large-cap US stocks, while the S&P 500 tracks 500 large US stocks. Holdings in both indices must meet certain criteria and are selected by committees. But the Dow Jones and S&P 500 differ in value, size and diversification.<\/p>
The S&P 500 is a collection of 500 large-cap stocks that trade on US exchanges, while the Dow Jones tracks just 30 stocks.<\/p>
The Dow Jones is price-weighted, so stocks with higher prices have a greater impact on the index. In the S&P 500, stocks with a higher market capitalization have a greater impact on the index. Each company\u2019s size is measured by the stock price multiplied by the total number of outstanding shares, adjusted for a public float.