Title: The Surprisingly Lucrative Business of Making a List of 500 Stocks – A Deep Dive into S&P 500’s Profitability The world of finance is filled with unexpected surprises, and one such surprise lies in the seemingly simple act of compiling a list of stocks. The S&P 500, an index that ranks the most valuable companies in the United States, has been a staple for investors since its inception in 1926. However, what many people don’t realize is just how lucrative this seemingly simple task can be. In a recent article by Planet Money Newsletter, it was revealed that S&P Global, the company responsible for creating and maintaining the S&P 500 index, makes hundreds of millions of dollars in revenue each year from its creation alone. This is despite the fact that anyone with access to financial data could theoretically create their own list of stocks. So how does S&P Global manage to profit so wildly from this seemingly simple task? The answer lies in the infrastructure behind the index itself. The S&P 500 serves as a benchmark for many investors, and its reputation has made it an essential tool for those looking to invest their money wisely. This means that companies listed on the S&P 500 are often seen as more stable and reliable than those not included in the index. As such, these companies tend to attract more investment capital, which leads to higher stock prices and increased profits for both the company itself and for investors who hold shares in those companies. Moreover, because of its status as a benchmark, many financial products are tied directly or indirectly to the performance of the S&P 500. This includes everything from mutual funds and ETFs to index-linked bonds and derivatives. As these products grow in popularity, so too does demand for access to accurate and reliable data about the companies included in the index. This brings us back to S&P Global’s lucrative business model. By providing this essential service – compiling a list of stocks that investors can trust – they are able to charge premium prices for their products and services, which has allowed them to generate significant profits year after year. And while there may be competitors in the market who could theoretically create their own indexes, none have been able to match S&P Global’s reputation or reach. In conclusion, the seemingly simple act of compiling a list of stocks can actually be quite lucrative when done correctly. The success of the S&P 500 demonstrates that there is real value in providing investors with reliable and trustworthy information about which companies are worth investing in. As long as this demand continues to grow, it seems likely that businesses like S&P Global will continue to reap the rewards of their efforts.
Source: [Original Article](https://www.npr.org/sections/planet-money/2025/09/23/g-s1-90054/how-does-the-s-p-500-work)
#surprisingly
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