Compared with the stock market, macroeconomic factors have relatively little influence on the price of index funds. When the global economic situation is unstable, political risks increase or geopolitical hot issues frequently appear, the price of index funds will fluctuate to some extent. However, because these factors affect the situation of the whole market, its volatility is relatively small compared with stock funds, and the role of fund managers is relatively passive.
Besides the market situation and macroeconomic factors, the price of index funds is also related to the fund growth rate and rights issue. When the scale of the fund continues to expand, the management expenses will decrease, the net value of the fund will also increase, and the corresponding index fund price will also increase accordingly. In addition, the rights issue of index funds will also have an impact on their prices. The rights issue of fund companies means that the scale of the fund will expand, and the corresponding index fund prices will also rise.