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Difference between broad-based index and narrow-based index
Broad-based index refers to a representative index fund covering a variety of stocks. Narrow base refers to index funds with relatively narrow coverage.

Generally speaking, the number of constituent stocks of a broad-based index is often large, the weight of a single stock is low, and the investment target is also wide. On the contrary, the narrow base index is suitable for irregular and non-directional investment with certain timing and fundamental judgment. Generally speaking, wide base and narrow base are actually a common name, which mainly refers to the difference in investment direction and scope. If investors want to enter the investment market, it is very necessary to know the broad-based and narrow-based indexes.