The constituent stocks of an index fund are determined by the fund manager. Index fund is a fund that takes each index as the investment target and the constituent stocks of the index as the investment object, builds a portfolio by purchasing all or part of the constituent stocks of the index, and tracks the performance of the underlying index. Generally speaking, index funds aim to reduce tracking errors and obtain roughly the same rate of return as the underlying index.

Investors can choose a fund with better tracking index growth, or they can choose an index fund with smaller investment tracking error. The smaller the tracking error, the stronger the management ability of fund managers, and the better investors can achieve the goal of obtaining index return.