The first index fund in the world appeared in the United States 197 1. It is a fund product launched by Weaver Bank to institutional investors, and the tracking target is the Standard & Poor's 500 Index.

The index fund theory originated from the modern portfolio theory put forward by Nobel Prize winner 1952. He pointed out that a portfolio with diversified risks can provide the best balance between risk and return.

1964, another nobel prize winner put forward a capital asset pricing model, pointing out that market portfolio is the best risk diversification portfolio. All these provide a solid theoretical foundation for the birth of index funds.