What kind of power blackrock/statestreet/vanguard actually have

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I keep hearing that they own everything, something like 80% of s&p500. Is that true? How is this possible

In: Economics

Anonymous 0 Comments

They dont own it. They manage the investments of a lot people. If you have a few millions and want to investment them you go to one of these firms and tell them hey I want to invest a few millions these are my goals pls make sure to hit them, here is your fee for doing this serivce. So they buy things like stocks from s&p500 companies in the name of their customers, the customer still owns these stocks. Also its no where near 80% blackrock is the biggest one and manages about 9 billion. The s&p500 has a market cap of 43 trillion and they dont only invest in the s&p500.