Investment index funds can avoid some risks of individual stocks and avoid the process of stock selection. Index funds can be divided into broad-based index funds and narrow-based index funds. In a narrow sense, index funds refer to index funds limited to a certain industry, theme and style. What are the narrow index funds?

What are the narrow index funds?

Narrow-base index funds can be divided into industries, themes and styles. Here are some related funds:

1 Industry index funds: consumer ETFs, pharmaceutical ETFs, energy ETFs, wine ETFs, bank ETFs, securities ETFs and environmental ETFs.

Theme index funds: Shanghai state-owned enterprise reform ETF, resource ETF, private enterprise ETF, etc.

3 style index funds: growth ETF, deep value ETF, value ETF, etc.

It can be seen that most index funds in the market are mainly in the form of ETFs. In fact, ETF itself is very suitable for constructing index funds, because ETF uses a basket of stocks corresponding to the index when buying, and investors hold ETF shares, which means ownership of a basket of stocks.