What's inside an index fund
You probably own an index fund. Here's what's actually inside the most popular one.
About 500 companies, each sized by the market. It cleans itself as companies rise and fall. And at the end of 2023, U.S. index funds held more money than active funds for the first time.
Yesterday's reel walked through it out loud. Here it is on one page. Save this for the next time someone asks what an index fund is.
Companies named are examples, not recommendations. Education, not advice. Not a recommendation to buy or sell anything.
Sources
- Largest S&P 500 weights in Oct 2026: Nvidia, Apple, Microsoft (Slickcharts, Oct 10, 2026; SPDR S&P 500 ETF holdings, Oct 2, 2026)
- Passive U.S. funds passed active funds in total assets at the end of 2023 (Morningstar data, reported by the Financial Times, Jan 2024; summary: https://www.hl.co.uk/news/passive-eclipses-active-in-us-fund-market-as-assets-swell-to-133tn)