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What are the pure index funds?
At present, there are 15 index funds in China, which can be divided into two types according to the trading methods: one is ordinary open-end index funds, which are traded by bank consignment; The other is the index fund which is listed and traded, referred to as ETF, which is traded in the securities market like a stock. At present, there are five index funds listed and traded.

Investment index funds vary from person to person.

Brokers said that in index funds, if strictly distinguished, there are pure index funds and enhanced index funds. At present, most of the 15 index funds are enhanced index funds. The key to see whether an index fund strictly simulates the index is to look at its fund contract. For example, the performance benchmark of E Fund Shenzhen Stock Exchange 100ETF is the price index of Shenzhen Stock Exchange 100, which means that the fund is a pure index fund; Great Wall Jiutai 300 is an enhanced index fund, because it not only tracks the CITIC S&P 300 index, but also invests some funds in national debt and financial debt.

Pure index fund or enhanced index fund, which is better? Brokers believe that there is no standard answer, just look at other people's investment. If the purpose is to invest in indexes, then pure index funds are varieties that meet the investment purpose.

More than half of the index funds doubled their returns.

Index funds quickly gained favor because of their good performance. According to the published statistics, since the beginning of this year, the index fund has risen more than the fund, and the profit advantage of the whole sector is obvious.

It is understood that the performance of ordinary index funds is not as good as that of listed index funds. In this regard, brokers said that the tracking index deviation of listed index funds is small, because once there is a big deviation, it will give speculators arbitrage space. When hot money arbitrage by buying and selling a basket of stocks in the index, this deviation will be immediately reduced to unprofitable. Generally speaking, the smaller the deviation between performance and tracking index, the more successful the index fund is. The deviation of listed index funds is smaller than that of ordinary index funds, and their performance is naturally better.