The S&P 500 experiences a ton of turnover 🔀

TKer Stock Market Truth No. 9 helps explain why the market usually goes up 📈

Merrill Lynch account executive chalks up current stock prices on quotation board in firm's mobile office. (Source: Library of Congress)

One of the more important characteristics of the S&P 500 is the amount of turnover among its constituents.

“Since 1980, 36% of S&P 500 constituents have turned over during the average 10-year period,” Goldman Sachs’ David Kostin observed.

That’s right. About a third of the S&P changes every 10 years.

The S&P 500 experiences a lot of turnover. (Source: Goldman Sachs)

This turnover — as identified in TKer Stock Market Truth No. 9 — is one of the reasons the S&P has usually gone up throughout history.