GEM 50ETF is a broad-based index fund. It refers to a broad and representative index fund or ETF fund. Shanghai Composite Index Fund, Shanghai and Shenzhen 300 Index Fund, CSI 500 Index Fund, Growth Enterprise Market ETF and Kechuang 50ETF all belong to broad base.

The broad base corresponds to the debt base, and the narrow base refers to the index fund or ETF fund launched for a certain industry or sector, with a narrow coverage, such as consumer ETF, brokerage ETF, pharmaceutical ETF, food ETF, photovoltaic ETF and semiconductor ETF.

Both broad-based and narrow-based funds are passive funds, passively following the trend of the index and pursuing market returns rather than excess returns. When investors are optimistic about a certain industry, they can choose to invest in narrow-base operation, and when investors are optimistic about the whole market environment, they can choose to invest in wide-base operation.