As the name implies, index funds are fund products with specific indexes (such as Shanghai and Shenzhen 300 Index, S&P 500 Index, NASDAQ 100 Index, Nikkei 225 Index, etc.). ) as the underlying index, and take the constituent stocks of the index as the investment object, build a portfolio by buying all or part of the constituent stocks of the index, and track the performance of the underlying index.
choice criterion
There are more and more index funds in the market, and it is more and more difficult to choose index funds. Investors should pay more attention to two points when choosing index funds: on the one hand, finding such an index is as difficult as choosing stocks; On the other hand, choose index funds with smaller investment tracking errors. The smaller the tracking error of funds, the stronger the management ability of fund managers, and the more investors can achieve the goal of obtaining index returns.
According to the data of Galaxy Securities Fund Research Center, by the end of April 20 12, there were 133 standard index funds and 24 enhanced index funds in the domestic fund market, which was unprecedented in scale. In the face of numerous index funds, how should investors choose?