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> Do you think people buying the SP 500 are forced to buy... If it's an index fund, like the vast majority of pension/roth/etc funds, then yes, yes they are.
by Eji1700 4mo ago
> Do you think people buying the SP 500 are forced to buy...
If it's an index fund, like the vast majority of pension/roth/etc funds, then yes, yes they are. It's literally the whole point of an index fund.
https://www.investopedia.com/terms/i/indexfund.asp https://www.investopedia.com/terms/i/indexfund.asp
> For broad indexes like the S&P 500, it would be impractical or expensive for an investor to construct the right proportions in a portfolio. Index funds do the work by holding a representative sample of the securities. S&P 500 index funds, the most popular and oldest such funds in the U.S., mimic the moves of the stocks in the S&P 500, which covers about 80% of all U.S. equities by market cap.3
So while yes, people are parroting things they don't understand, so are you.