Many investors may not know some technical terms of the stock market, for example, according to the financial report of the NASDAQ Encouraged Growth Index. Why is there such a big difference between Nasdaq ETF and actual Nasdaq index?

I. Nasdaq index

In fact, the Nasdaq index refers to the Nasdaq composite index, which refers to the average price index of the stock market changes of the Nasdaq Stock Exchange. This has been confirmed by the National Association of Securities Dealers 1968. Automatic quotation is an English name of my name, so many investors don't know much about it. Nasdaq Index It includes Nasdaq Composite Index, Nasdaq Biotechnology Index, Insurance Index and so on.

Second, Nasdaq index ETF.

Nasdaq index ETF is actually closely related to the economic development of the United States and the level of national scientific and technological development, and directly affects the scientific and technological stocks listed on the NASDAQ exchange in the United States. For example, American market, Apple, Amazon, Google and so on, the stocks in these stock markets will affect the overall trend of Nasdaq index ETF. Therefore, these changes will lead to the rise or fall of NASDAQ ETF, so these are normal phenomena, which is why there is such a big difference between NASDAQ index and NASDAQ ETF in real life, not because there is a problem with the business level of fund companies, but because fluctuations in the real market will affect NASDAQ ETF.

Third, the reasons for the formation of differences

In fact, from this point, it is not difficult for us to understand that ETF is a tracking error. Tracking error refers to the deviation between the index fund income and the benchmark index income due to fluctuations. This deviation is caused by the change of positions caused by the subscription of large funds or the suspension of stocks. In addition to these reasons, in general, the fund's share dividends and exchange rate risks will also have an impact on it.