There are too many uncertainties in the fund market, and investors are hesitant to choose investment targets every time. There are few uncertainties in index funds. By completely copying the index, the index fund obtains the expected annualized expected return that is very close to the index and bears the risk that is very close to the index. Therefore, in the bull market, index funds always attract the attention of the market, and index funds also have their subdivided fields. Industry index fund is a subdivision product of index fund.

1. What exactly is an industry index fund?

As the name implies, the industry index fund is an index fund, which is a fund product with passive investment management based on tracking an industry index. Secondly, because the sample stocks of the tracked industry index will be concentrated in a certain industry, it also reflects the characteristics of industry funds, but the biggest difference with ordinary industry funds is that passive management is still implemented.

In 2009, the overall scale of index funds increased by 2.6 times, and the average performance exceeded 88%, which achieved a double harvest of scale performance and gave investors a new understanding of index fund investment. However, investors will also find such a phenomenon in their investment, that is, the index funds are highly homogenized. There are as many as 15 index funds that only track the Shanghai and Shenzhen 300 Index. Except for a few grading and enhancement functions, most similar index fund products are not much different in design. In fact, there are two kinds of concentration phenomena of index fund products issued in China: one is to track the concentration of products with the same index, and the other is that different types of indexes are mainly concentrated on the tracking of scale index. Whether it is CSI 300, CSI 100 or CSI 500, they are all classified by scale. In foreign countries, the variety of index funds is more abundant, including not only scale index, theme index, style index, but also industry index, strategy index and other products. These different types of products also meet the specific market demand in the investment field.

Second, how about industry index funds?

In mature markets, industry index funds basically cover all industries and become the main industry allocation tool for investors. By the end of March 2009, there were 65,438+065,438+04 ETF industry funds in the United States, accounting for 65,438+06% of all ETFs in the US market, with total assets under management of 4,426,543,840.4 billion US dollars. Among them, FinancialSelectSectorSPDRFund, which tracks the S&P 500 financial index, and EnergySelectSectorSPDRFund, which tracks the S&P 500 energy index, ranked 8th and 22nd in the global ETF asset scale in 2008 with assets of118.99 million and 6618 million respectively.

However, there is still a lack of industry index funds in the domestic market, and the approval of the first domestic industry index fund will fill this gap. Moreover, through the rapid development in recent years, a number of listed companies in financial real estate, energy, raw materials and other industries have formed in the domestic securities market, and the feasibility and necessity of developing industry index funds in China are further revealed. With the continuous development of domestic economy, various industries also provide investors with opportunities to share the fruits of domestic economic development through industry investment, which provides opportunities for domestic development of industry index funds focusing on industry investment, and domestic industry index funds are expected to form a new round of development boom.