Index funds can be divided into broad-based index funds and narrow-based index funds, and investing in broad-based index funds is actually investing in macroeconomics. If you don't want to choose a stock or an industry carefully, then a broad-based index fund is relatively suitable for you. What does a broad-based index fund include?

What does a broad-based index fund include?

Common broad-based indices in China include SSE 50ETF, CSI 300ETF, CSI 500, GEM index, etc. ETFs or index funds that track these indexes are generalized index funds. Although they are all broad-based, they have certain differentiation in performance. SSE 50 and CSI 300 have relatively large market values, so the fluctuation is relatively small, while SSE 500 and GEM have relatively small market values, relatively high risks, but strong growth.

Corresponding to the broad-based index fund is the narrow-based index fund. Generally, narrow index funds focus on investing in a certain industry, such as medical care and 5G. Industries can be divided into three categories: cyclical, defensive and growth, and different economic cycles have different industry allocation strategies.