Large index funds match the stock market on a percentage basis, not based on individual performance. So they take in billions every day from 401k contributions in paychecks and buy Tesla, not because Tesla is doing well, but because it’s in the S&P 500.
Large index funds match the stock market on a percentage basis, not based on individual performance. So they take in billions every day from 401k contributions in paychecks and buy Tesla, not because Tesla is doing well, but because it’s in the S&P 500.