It is almost impossible for Huaan Enhanced Index Fund to use stock index futures as a hedging tool, and it is almost impossible to enhance its performance through margin financing and securities lending. The definition of index fund is to copy the index. If you use stock index futures as a hedging tool, it is not an index fund. The so-called enhancement is to appropriately change the investment weight in the sample index.

The idea of index funds is: as long as the index is invested for a long time, the long-term trend of the stock market must be higher step by step, and long-term investors and mid-line fluctuations will not affect the long-term trend. In other words, the annual growth rate of macro-economy is not less than 8%, which is what index funds earn. Investors may see that index funds earn the most in a bull market, but they may not know that index funds lose the most in a bear market. In fact, index funds do nothing but copy the index. Even without stock index futures and margin financing and securities lending, index funds do not take any action in the bear market. According to the theory of index funds, the stock market is unpredictable and unpredictable, so everything done to improve returns is meaningless.

Rest assured, index funds will not participate in stock index futures and margin financing and securities lending.