k_ETF_assetClass

Mostly based on https://www.fool.com/investing/2019/02/09/how-are-sp-500-stocks-chosen.aspx

When a retail investor buys an ETF tracking sp500 or DJIA, she is mindless, but the sp500 and DJIA indices are not mindless. They are (not 100% passively) managed by smart professionals. Buy-n-forget SP500/DJIA ETF relies on the index committee as stock pickers.

— SP500 composition is (unlike other indices) not simply adjusted mechanically every few quarters
— SP500 doesn’t automatically become tech-heavy even when tech stocks grow to dominate the U.S. market
The committee wants sp500 to remain representative of the entire U.S. large-cap market.

I suspect that some admission criteria were introduced to disqualify tech stocks.
— Entering SP500, Profitability matters .. With few exceptions, companies must be profitable to get in. A key stock-picking criteria.
— Exiting SP500.. It’s much harder to get kicked out of the S&P 500 than to get in
“Addition_criteria are for addition to an index, not for continued membership. As a result, an index constituent that appears to violate criteria for addition to that index is not deleted unless ongoing conditions warrant an index change.”
— SP500 committee have discretion .. “The people who make up the index committee are some of the (TB: top 1000) most influential people in the financial markets”