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The surprisingly lucrative business of making a list of 500 stocks
['Alex Mayyasi']
NPR Topics: News
The surprisingly lucrative business of making a list of 500 stockstoggle caption Richard Drew/AP/APThis comes from the Planet Money newsletter.
Less well-known is that S&P Global, the company that makes the S&P 500 and that employed Blitzer, is itself on the S&P 500 list.
In 1982, the investment-management company Vanguard started offering S&P 500 index funds — basically, an easy way to invest in all the stocks of the S&P 500.
That fee was based on how much money people invested in S&P 500 index funds and ETFs (or spent on S&P 500 futures).
Blitzer's simple list of 500 stocks was one of the hottest portfolios on Wall Street, and getting access to it was cheap.
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