Who owns S&P500? Should we buy the ETFs or the companies who issue them?

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This came after watching a clip by Patrick Bet and Joe Ragan. 

From the video, I realized that State Street Corporation, Vanguard and Blackrock own about 20% of the S&P with their shares and their various ETFs.

If Blackrock becomes a country, it will be the 3rd biggest in the world after the USA and China with about $10 trillion of assets under management (AUM). 

I have listed the charts of BlackRock and State Street stocks below.  For Vanguard, only their ETFs are listed, not the company stock itself.


State Street Corporation (STT)


Blackrock (BLK)

Can these 3 companies exercise some influence over the entire stock market? With their ETFs, we can expect their AUM to continue to grow as more people get into passive investing and buying ETFs using dollar cost averaging (DCA).

My investing muse

With this, I am wondering if it makes sense to invest directly in BlackRock and State Street.  In terms of commissions, the revenue is certain but the performance of the ETFs is not always guaranteed. In a different context, I rather buy Berkshire shares than the ETF. Food for thought.


More details about the 3 companies can be found in the section below about their ownership of S&P500 and AUM.

From Google Bard:

The three largest institutional investors in the S&P 500 are:

  1. BlackRock. BlackRock is the world's largest asset manager, with over $10 trillion in assets under management. It is a major investor in the S&P 500, with over $4 trillion in holdings. BlackRock's investments in the S&P 500 are made through a variety of funds, including index funds, ETFs, and mutual funds.
  2. Vanguard. Vanguard is the second largest asset manager in the world, with over $8 trillion in assets under management. It is also a major investor in the S&P 500, with over $2 trillion in holdings. Vanguard's investments in the S&P 500 are made through a variety of funds, including index funds, ETFs, and mutual funds.

  3. State Street Corporation. State Street Corporation is a global investment management company with over $3.5 trillion in assets under management. It is a major investor in the S&P 500, with over $1 trillion in holdings. State Street's investments in the S&P 500 are made through a variety of funds, including index funds, ETFs, and mutual funds.

These three asset managers collectively own about 20% of the S&P 500. Their large holdings give them a significant influence on the performance of the index.

In addition to these three, other large institutional investors in the S&P 500 include pension funds, insurance companies, and sovereign wealth funds. These investors typically invest in the S&P 500 as a way to diversify their portfolios and reduce risk.


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