2. As a standardized product, broad-based index funds have relatively transparent positions, clear logic and more stability;

3. Low cost, high efficiency, innovation, timely adjustment in half a year, according to the rules of index compilation, eliminating or including relevant stocks, and eliminating the fittest.

These are the characteristics of broad-based index funds.

What does broad-based index fund mean?

Broad-based index refers to a very iconic index covering a wide range of stocks, such as CSI 300 and CSI 500. According to the relevant specifications of the American market, the broad-based index generally needs to meet multiple criteria:

1, including stocks above 10;

2. The weight of a single constituent stock shall not exceed 30%;

3. The total of the five stocks with greater weight shall not exceed 60% of the index;

4. The average daily trading volume of constituent stocks exceeds 50 million dollars.

The narrow base index corresponding to the broad base index is the style index, industry index and theme index except the broad base index. Compared with the broad-based index, the narrow-based index usually tracks a single field and topic, and the target is more concentrated. This paper mainly writes about the characteristics and related knowledge points of broad-based index funds, and the content is for reference only.