They provide a strong market presence, allowing investors to buy all S&P 500 companies at a low price. The state pension fund for teachers has had $12 billion in mutual funds until recently. The regulator has doubts about the profitability of such funds during the COVID-19 pandemic.
The S&P 500 is one of the most well-known indices in the global stock market. It displays the total capitalization of 500 large US public companies which shares are available to buy or sell in public trading. The index includes, for example, Facebook, Apple, Amazon, Microsoft, etc.
The global financial crisis of 2007-2008 had such an impact on the S&P 500 index. It took about 5 years to recover and cover the incurred losses.
The index has shown a rapid growth now, taking into account the fact that the situation in the US economy is now much worse than it has been in 2007-2008, and the unemployment rate exceeds the threshold of 105%.
Photos are from open sources.