The Top 4 Notable Companies Not Included in Your Preferred S&P 500 Exchange-Traded Fund (ETF)
The S&P 500, a broad market index, tracks the performance of around 500 large-cap U.S. stocks. It's widely regarded as a reliable indicator of the overall health of the stock market. While this index is popular and influential, it doesn't include every significant large-cap company. In fact, several well-known names fail to make the cut.
Why are some big names missing from the S&P 500? The primary reason is that the index only includes companies with U.S. headquarters. Companies like Taiwan Semiconductor Manufacturing, based in Taiwan, or Spotify, founded in Sweden, won't qualify. For these internationally-minded firms, there are plenty of exchange-traded funds (ETFs) that offer exposure. For instance, Taiwan Semiconductor is a major holding in the S&P World Ex-US ETF and the VanEck Semiconductor ETF.
Similarly, Shopify, an Ottawa-based e-commerce giant, also misses out on the S&P 500 party. Nevertheless, you can gain exposure to Shopify via numerous ETFs. Shopify is a leading holder in Cathie Wood's ARK Fintech Innovation ETF, a popular fund in the fintech space.
Coinbase International, operating as a fully remote business but headquartered in the U.S., comes relatively close to S&P 500 inclusion. With a large market cap and American roots, Coinbase tends to rise ahead of S&P 500 roster updates. However, repeated snubs suggest that the traditional-minded S&P 500 selection panel might not be ready to welcome cryptocurrency-related stocks yet.
But fear not, as there are numerous ETFs offering exposure to Coinbase. Cathie Wood's ARK Innovation ETF, SPDR ETFs, and Vanguard ETFs are some of the funds with substantial Coinbase positions.
When the S&P 500 falls short, various ETFs can help you broaden your investment horizon. Options include the iShares Russell Top 200 Growth ETF, the Invesco QQQ Trust, the Schwab U.S. Large-Cap Growth ETF, and the Vanguard Mega Cap Growth ETF. For international companies, consider ETFs like the iShares MSCI ACWI ex US ETF or the iShares MSCI EAFE ETF.
Just remember to carefully research each ETF's specific holdings to ensure it aligns with your investment objectives. Quantities may vary, but these diversified ETFs can provide you with exposure to large-cap stocks beyond the S&P 500.
In 2025, investing in exchange-traded funds (ETFs) like the iShares MSCI ACWI ex US ETF or the iShares MSCI EAFE ETF may prove beneficial, as these funds offer exposure to international companies that are not included in the S&P 500. The S&P 500 exclusion of some big names, such as Taiwan Semiconductor Manufacturing, Spotify, Shopify, and Coinbase, has led to an increase in popularity of ETFs, serving as a barometer of the investment trend. For instance, Taiwan Semiconductor is a major holding in the S&P World Ex-US ETF and the VanEck Semiconductor ETF.
In the context of finances and investing, Cathie Wood's ARK Fintech Innovation ETF plays a significant role, as it holds leading positions in Shopify and Coinbase. Moreover, this ETF can be considered a barometer of the fintech space's performance and trends. When considering ETFs for investment, it is crucial to thoroughly research each fund's specific holdings to ensure they align with your investment objectives, as the quantities of holdings may vary among different ETFs.
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