How does the purchasing index work?
Buying an index is achieved by buying an index fund. An index is nothing more than calculating a certain number of constituent stocks into a stock index according to different rules. Index funds build stock portfolios according to the composition of constituent stocks in the index and track the index.
Buying an index fund is buying an index. Specifically, if we are optimistic about an index, we can search the name of the index in the consignment channel or securities account. If the words index fund or ETF appear in the results, we can buy it to track the index.
In addition to investing in index funds, you can also invest in index by investing in stock index futures or stock index options, but both of these investment tools need to meet higher threshold conditions before they can be opened, and the potential fluctuations are relatively large.