Recently, summaries were compiled on the developments in the investment patterns of households in Israel in 2023.
One of the most prominent trends was the significant increase in investment in the S&P 500 stock index. At the end of 2023, this investment through the pension instruments, such as training funds, provident funds and pension funds, amounted to NIS 70 billion - a record and a two-fold increase from the beginning of the year.
The increase was due to both the transition to tracks specializing in this and the return of the index, which amounted to 25%.
So what, actually, is this index?
This is a stock index that includes the top 500 stocks on the American stock exchanges.
Inclusion in the index is determined by a committee consisting of economists and analysts from the Standard and Force company.
The criteria for entry are minimum market capitalization, size, marketability and industry affiliation.
Changes in the index are made once a quarter.
In the list of the largest stocks included in the index you can find:
Apple - whose weight in the index is 7.1% and whose market value is 2.75 trillion dollars.
Microsoft - whose weight in the index is 6.51% and whose market value is 2.36 trillion dollars.
Amazon - whose weight in the index is 3.24% and whose market value is 1.35 trillion dollars.
Nvidia - whose weight in the index is 2.84% and whose market value is 1.04 trillion dollars.
How can you be exposed to investing in this index?
Apart from using the pension instruments, some of which we have listed here, this can also be done by purchasing mutual funds or ETFs that specialize in this, by investing directly in the shares included in the index and in other instruments.
The above should not be considered a substitute for personal investment advice tailored to the client
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