The United States is the most developed western country in index funds. On 1976, Pioneer Group took the lead in establishing the first index fund in the United States-Pioneer 500 Index Fund. The emergence of index funds, there have been more than 400 kinds of index funds in the American securities market, and they are still growing at a high speed every year. The latest and most exciting index fund product is exchange traded fund (ETF). Nowadays, in the United States, the types of index funds include not only various American stock index funds, American industry index funds, global and international index funds and bond index funds, but also growth, leverage and reverse index funds. Exchange traded funds are a newly developed index fund.
The rapid development of index funds in China stock market benefits from the above advantages. In June 2002, it was only half a year before the SSE launched the SSE 180 index, and the Shenzhen Stock Exchange also launched the SZSE 100 index. After that, the first domestic index fund, Huaan SSE 180 Index Enhanced Securities Investment Fund, entered the market. At the beginning of 2003, another fund, Tiantong SSE 180 Index Fund, which closely tracks the trend of SSE 180 Index Fund, also went public. However, the development of index funds in China is not smooth sailing. In order to avoid systematic risk and individual stock investment risk, China's optimized index funds adopt different operating principles from those of foreign index funds. The main difference is that the managers of domestic optimization index funds can adjust the index positions according to the judgment of the index trend, and use the advantages of research and financial analysis to prevent some risky stocks from entering the portfolio in the process of subjective stock selection. In the part of indexed investment, funds Xinghe and Jingfu track the Shanghai A-share composite index, while fund Pufeng tracks the Shenzhen A-share composite index. Judging from the actual operation results of such funds, the performance is not ideal. The reasons are not only the defects of China stock market itself, but also the management reasons of fund companies. Nevertheless, index funds have become a favorite financial tool for many investors. With the continuous improvement of China's securities market and the vigorous development of the fund industry, I believe that index funds will have great development potential in China.
Advantages of index funds:
1, human factors have little influence.
2. This ratio is very low. The subscription and redemption rate of general stock funds is 1- 1.5%, and that of index funds is 0.5- 1.2%.
3, passive tracking index personal finance calculator, very intuitive. It is also suitable for short-wave band operation.
4. Long-term investment has little risk and excellent return.
Disadvantages of index funds:
1, the fluctuation is too large. For short-term operation, the risk is great.
2. lead the rise but not resist the decline. In any market, the position of index funds is very high, and it is impossible to avoid the risk of the stock market through the operation of fund managers.
3. The risk of fund redemption. If you want to quit early, you have to sell at a low level, which is easy to lose money.
4. The fixed investment of the fund is not applicable in all cases, and the effect is very different.