1. can be simply understood as the application of ETF in index-enhanced funds, which combines the active investment mode of index-enhanced funds with the convenient trading attributes of ETF. Giving full play to the fund manager's active investment and research ability in investment strategy can tolerate certain tracking deviation and tracking error, and strive to obtain the income beyond the index, while maintaining the existing ETF model in operation mode, with high transparency and convenient trading.

2. In the medium and long term, the excess return relative to the index depends on the manager's management ability and the setting of target tracking error. Of course, because of tolerating certain tracking errors, the index-enhanced ETF will not win or lose, and in some market environments, it may not win the index.

3. The risk index is average. ETF funds have always been called passive management funds. Generally, specific index stocks are selected as investment targets, and they do not actively seek to surpass the market performance, but try to completely copy the performance of the index and minimize the tracking error.

First, how to treat the development space of enhanced ETF

1. Although this is the first batch of enhanced ETF products in China, the actively managed ETF has been operating in overseas markets for many years and has already become a relatively mature investment product, which has developed rapidly in the past six years.

2. The market share of domestic ETFs is relatively small compared with actively managed funds, and the future scale of active ETFs can be expected. As an innovative and differentiated product, enhanced ETF can bring new development opportunities for index investment. On the one hand, it can be seen from historical data that the domestic index enhancement strategy has a good effect.

3. On the other hand, the operating mechanism of ETF is becoming more and more mature and transparent. At the same time, for fund companies with strong quantitative strength, they can give full play to their advantages in improving index business and strive for better returns for investors.

Second, ETF funds and ordinary index enhanced funds.

1. General index enhanced fund: Enhanced index fund is a fund that strengthens flexibility on the basis of index fund and combines passive investment with active stock selection. While tracking the index, some positions are also put into the strategy of active stock selection, with the goal of reducing the impact of market downside risks, catching up with the average income of the market and even surpassing the average income of the market as a whole.

2. Index-enhanced ETF: on the basis of tracking the index, the loss of predictability is reduced by manual operation. Compared with ordinary index-enhanced funds, enhanced ETFs can be traded directly in the secondary market, which will be more flexible and convenient. Enhanced ETF, as an innovative product in the early stage, may require higher tracking error control, that is, the active risk is generally low. Of course, with the popularization of products, managers may develop enhanced ETFs with greater tracking errors.