(1) Tracking benchmark index has a huge cost advantage and can realize "making money after earning index";
(2) It can effectively reduce the unsystematic crisis and the moral crisis of fund managers;
(3) The fund's income is predictable and its performance is relatively stable, which is suitable for individual investors to invest for a long time;
(4) Index funds are effective tools for domestic and foreign institutional investors to invest in China market, especially with the introduction of QFII policy, index funds will become the first choice for QFII to enter China stock market.
Warren Buffett, an investment guru, once talked about index funds in his letter to shareholders. He said that for most institutional and individual investors, investing in low-cost index funds is the best way to own common stock.
197 1 year, Barclays International launched the world's first index fund. At present, there are more than 160 index funds in the American market, among which the largest index fund is Vanguard500Index fund with a net asset of about $82.2 billion. In contrast, the number of domestic index funds is relatively small, such as Tiantong 180 Index Fund, Huaan SSE 180 Index Enhanced Fund, Boshi Yufu Fund and Rongtong Shenzhen Stock Exchange 100 Index Fund.