Billionaire Israel Englander's 2 Biggest Bets Are on the S&P 500, and He Just Bought More
2026-08-27 16:29
•Patrick Sanders •The Motley Fool
• ••• Axe Cap view
Why a Top Hedge Fund is Loading Up on S&P 500 ETFs
Israel Englander’s Millennium Management is buying more S&P 500 ETFs, signaling confidence in US large caps amid global uncertainty.
Israel Englander’s firm just made its two biggest bets via S&P 500 ETFs, IVV and SPY, adding millions of shares in the second quarter. What stands out here is a hedge fund, typically associated with complex strategies, leaning heavily into simple, low-cost index exposure. For South African investors, this isn't just about the US market's allure. It highlights how a steady, diversified US equity base can be a ballast in your portfolio. Given the rand’s volatility against the dollar, a well-chosen US ETF exposure can hedge local currency risk while tapping into global growth. Between IVV’s rock-bottom fees and SPY’s superior liquidity, there’s a clear trade-off depending on whether you’re in for the long haul or active trading. That said, if the US faces a sharper correction or inflation spikes, these broad-based bets could stumble alongside local cyclical stocks like Naspers or MTN, which are sensitive to global tech trends. this is just our opinion and not financial advice
We prefer holding IVV for cost efficiency and currency diversification despite a volatile rand. Trim exposure if short-term US economic risks heighten.
- IVV
- SPY
- USD/ZAR
- US market correction hurting broad equity ETFs
- Rand weakness eroding foreign returns
6/10
Billionaire investor Israel Englander's Millennium Management, which manages over $92 billion in assets, has made its two largest holdings S&P 500 index ETFs: iShares Core S&P 500 ETF (IVV) and SPDR S&P 500 ETF Trust (SPY). The fund recently purchased 1.5 million shares of IVV and 4.2 million shares of SPY in Q2, demonstrating that even sophisticated investors rely on low-cost index funds for diversification.
Our take is based on reporting first published by The Motley Fool.