The U.S. market is inconsistent with the Chinese market. After hundreds of years of development, there are very few retail investors in the U.S. market who specialize in short-term trading. Such retail investors may be eliminated. The U.S. market is dominated by institutional investors, mainly long-term investors such as pension funds and insurance companies. Institutions touch each other's pockets. Today you may make money and I will lose money. Tomorrow, it may be the other way around. I will make money and you will lose money. It is difficult for institutions to sustain in the long term. Beat other institutions, so index funds are very effective in the US market, saving time and effort. I just buy index funds and I get the average.

2. Why are index fund rates in the U.S. market cheaper than those in the Chinese market?

The U.S. market index fund is also the Matthew effect. The funds of several large fund companies dominate. The larger the scale, the smaller the impact of subscription and redemption, the more effective the tracking, and the management cost. The lower it is, you can refer to: Tencent's WeChat. The marginal cost of one more WeChat user is very low. Maybe the more users, the more feedback it will get, and it will become easier to use, forming a positive incentive. Large companies have large scale, good liquidity, and low fees. Small companies can only either lower fees or find another way out.

In addition, index funds in the US market can lend out part of the stocks they hold to obtain rental income, which can further reduce costs. I have no problem reducing the management fees originally charged to fund investors. Anyway, I can still rent out stocks. Some American funds do not even charge management fees, and rental income alone can cover costs.