Here is how S&P 500 generates income for its investors

Index funds are passive form of investing they are type of mutual funds. S%P 500 index funds due to their passive income banks are starting to suggest their investors to invest in mutual funds. S&P gives their customers only 0.03% interest rate only for example if you invest 1 million dollar in S&P fund you will get 300 U.S dollar per year. How does the S&P 500 work it is pretty simple if you invest in the S&P 500 fund you own all large market capitalization’s stock of all the 500 largest companies. S&P Index funds heavily invested in companies of technology, healthcare and construction. Technology is largest sector in S and P 500. Technology is the 27 % of the S&P 500. We used technology nearly every aspects of our lives. Health is the 40% of S&P share.  S&P has 10% the consumer discretionary. If you want to read more click the link below.