The Soaring Value of Intangible Assets in the S&P 500

When it comes to the S&P 500’s market value, abstract is in. In 2020, intangible assets accounted for 90% of the index’s total assets. Not only was this a historical high—it’s a nod to just how prevalent technology has become in our lives.

Intangible assets are holdings that don’t carry any physical or financial embodiment. This includes R&D, intellectual property, and computerized information such as data and software. While they’re often difficult to value due to certain accounting practices, today, intangibles are worth over $21 trillion.