The S&P 500 ended 2020 with a growth of 16.26% this year, hitting a record high at Thursday’s close, and ended the year with a solid performance after the radical sell-offs it suffered in February and March.
Some of the names in the index have witnessed strong years in terms of profits, as six of them have enjoyed a growth rate of more than 100%, and among the names that have enjoyed brilliant growth rates in the index are:
L Brands: 105.5%
Albermarle Corp.: 102.1%
Advanced Micro Devices (AMD): 99.8%
The S&P 500 could have grown much more if the shares of the two top-ranked companies (Electric car producer Tesla and Etsy) had joined at the start of the year, as they only joined the index in the last four months of the year.
It is noted that among the top 8 stocks in 2020 were two companies in the field of semiconductor chips, namely Nvidia and AMD.
It has been a strong year for the industry overall, with the PHLX Semiconductor Index rising 51% to outperform even the technical giant Nasdaq Composite.
The S&P 500 Index represents a group of large-cap stocks that form the center of gravity in the US stock market, and it is a valuation standard for many professional investors.
Many popular ETFs and mutual funds are compared to the S&P 500 Index, which has valued more than $11 trillion since December 2019, according to the S&P Dow Jones Indexes.
The companies that represent the index are usually switched year-round by the S&P Dow Jones Indexes committee, which announced on Wednesday that Enphase Energy will join the index on the 7th of this month and be replaced by Tiffany, which was recently acquired by LVMH.