Look at the scale and the time of establishment.
Generally speaking, when we consider how to buy GEM index funds, we will first look at the fund size. It is generally believed that the bigger the GEM index fund, the better. Of course, this is not absolute, not to say that we must choose the largest GEM index fund, but to say that under the same other conditions, it is recommended to give priority to choosing the largest fund.
Second, look at the time when the fund was established. There is a saying in the industry that "a fund that has not experienced a bull and bear market is not a good fund". Funds that have withstood the test of stock market crash and fuse show strong market adaptability. The natural law of survival of the fittest also applies to the fund investment market. Therefore, when we consider how to buy and choose GEM funds, the earlier the fund is established, the more worthy of consideration and ownership.
Refer to the principle of "three noes"
In addition to the "two viewpoints" mentioned above, if you want to judge which GEM index fund is better, you need to refer to the following three principles:
Don't choose: don't choose a fund that can't completely track the GEM index. Some funds choose several or dozens of GEM to form an ETF, which is not an index fund in a strict sense. If it is not managed by an experienced and competent fund manager, it is not recommended to choose.
Second, don't choose: don't choose ETF funds in the market. There may be many people who don't understand this. Isn't it just that the on-site fund handling fee is cheap? Don't worry, everyone may have a different understanding of how to buy and choose GEM funds, but in fact, from the perspective of fixed investment, the funds on the market must be manually invested, and the advantage of handling fees is more suitable for large-scale subscription. If it is a fixed investment, the performance-to-price ratio of ETF funds in the market is not very high.
Three don't choose: don't choose graded funds. Usually, such A-and B-class graded funds do not fully track the GEM index, and are prone to ups and downs, which is not very good for investors with insufficient risk tolerance and is not suitable for fixed investment.
Editor's Note: To sum up, we can refer to the principle of "two look and three don't choose" to judge which GEM index fund is better.