Common broad-based indices in China include SSE 50ETF, CSI 300ETF, CSI 500, GEM index, etc. ETFs or index funds that track these indexes are generalized index funds. Although they are all broad-based, they have certain differentiation in performance. SSE 50 and CSI 300 have relatively large market values, so the fluctuation is relatively small, while SSE 500 and GEM have relatively small market values, relatively high risks, but strong growth. Corresponding to the broad-based index fund is the narrow-based index fund. Generally, narrow index funds focus on investing in a certain industry, such as medical care and 5G. Industries can be divided into three categories: cyclical, defensive and growth, and different economic cycles have different industry allocation strategies.
The so-called broad-based index refers to a fairly representative index fund covering a wide range of stocks. CSI 500 Index, CSI 800 Index, CSI 300 Index, SME Board Index, GEM Index, etc. What are the good funds of Wide Fund? SSE 50, CSI 300, CSI 500 and GEM are all good funds among broad-based funds. But now the valuation is more expensive. ?
The broad base index is relative to the narrow base index. Broad-based index funds refer to CSI 300 and CSI 500, while narrow-based index funds refer to indexes of various industries, such as CSI Liquor and China Shipping Medical. The best use of broad-based index funds is the fixed investment of funds. According to the different investment targets, it is divided into large-cap index funds (SSE 50, CSI 300, etc. ), small and medium index funds (CSI 500, GEM index, etc. ), and index funds are fixed. Just choose one for each fund. Repeated selection will not increase income; Choose one in the big market and one in the small and medium market, similar to: CSI 300+ CSI 500? Or SSE 50+ CSI 500? Any combination of these can be used.