Index funds spread the risk of stock fluctuation through portfolio investment. Compared with individual stocks, ETF is less risky. At the same time, because the stock selection process is avoided, the stock selection process of index funds is more convenient than that of individual stocks. When choosing index funds, we can start with the types of index funds, so what are the types of index funds?

What are the types of index funds?

According to different standards, there are different types of index funds, and investors should start from these aspects when choosing index funds. The types of index funds are:

According to the representativeness of the index, 1 can be divided into broad-based index and narrow-based index. The difference between the two lies in the number of industries and topics.

It can be divided into stock index funds, commodity index funds and bond index funds according to asset categories.

3 according to the transaction method, it can be divided into ETF and LOF. The former can only be traded on the floor, while the latter can be traded on the floor or off the floor.

According to the strategy, it can be divided into fully replicated index funds and enhanced index funds. The purpose of enhanced index fund is to obtain higher returns than the original index, but it may not be able to obtain performance beyond the index in actual operation.