Investment strategy of Nasdaq exchange traded funds;
1. The Fund mainly adopts the complete replication strategy, that is, it constructs the fund stock portfolio according to the composition and weight of the underlying index constituent stocks, and makes corresponding adjustments according to the changes of the underlying index constituent stocks and their weight. However, due to special circumstances (such as long-term suspension of constituent stocks, changes in constituent stocks, changes in the weight of constituent stocks due to free circulation, the behavior of constituent companies, and insufficient market liquidity). ), the fund manager will optimize the portfolio and minimize the tracking error.
2. Under normal market conditions, the risk control objective of the Fund is to pursue that the absolute value of daily average tracking deviation should not exceed 0.2% and the annual tracking error should not exceed 2%. If the tracking deviation and tracking error exceed the above range due to the adjustment of the underlying index compilation rules or other factors, the fund manager should take reasonable measures to avoid further expansion of the tracking deviation and tracking error.
3. In addition, based on the needs of liquidity management, the Fund will invest in index-type Public Offering of Fund (including ETF) with similar investment objectives and investment strategies as the underlying index of the Fund. At the same time, in order to better achieve the investment objectives of the Fund, the Fund will also carry out securities lending business and invest in financial derivatives such as stock index futures when conditions permit, with a view to reducing the tracking error level. The fund's investment in financial derivatives aims to replace the constituent stocks that track the underlying index, so that the fund's portfolio can track the underlying index more closely. It shall not be used for speculative trading purposes, nor shall it be used as a leverage tool to amplify the investment of funds.
4. In the future, with the development and enrichment of investment tools in the global securities market, the Fund can adjust and update relevant investment strategies accordingly, and make an announcement in the updated prospectus.