Replication refers to the allocation of fund assets according to the weight distribution of the constituent stocks of the tracking index (that is, the proportion of the circulating market value). For example, if the market value of a stock accounts for 10% of all the selected stocks, then 10% of the fund's stock assets (non-net assets) is this stock.

Of course, even if it is a complete copy, when the fund manager expects that the constituent stocks will be adjusted and the constituent stocks will be allotted shares, sent shares and distributed dividends, and the subscription and redemption of the fund may have an impact on the effect of tracking the underlying index, the fund manager will make appropriate adjustments to the portfolio to control the tracking error within a limited range.

Enhanced replication refers to the replication index of most stock assets of the fund (accounting for more than 80% of the stock assets), and the rest of the stock assets are held by the fund manager for active investment.