The S&P 500 is a market capitalization-weighted index that measures the performance of the 500 largest publicly traded companies in the United States, and it includes many different sectors and industries. The five large-cap technology companies known as FAANG (Facebook, Apple, Amazon, Netflix, and Google) are included in the S&P 500, but their weightings are relatively small compared to the overall index.
If you are interested in evaluating the performance of the S&P 500 without the influence of the FAANG companies, one way to do this is to create a custom index that excludes those companies. However, keep in mind that the FAANG companies have had a significant impact on the overall performance of the S&P 500 in recent years, so excluding them could result in a less representative view of the overall U.S. stock market.
Additionally, the S&P 500 is not the only index available to investors, and there are many other options that exclude or give less weight to the FAANG companies. For example, some index providers offer equal-weighted versions of the S&P 500, which give equal weight to each of the 500 companies in the index, rather than weighting them based on market capitalization. These equal-weighted indexes may provide a different perspective on the overall performance of the U.S. stock market, without the influence of the largest companies such as FAANG.
