Index funds are compound interest products. The income of index funds is reflected in the increase of net value. After the net value increases, the net value change of the next trading day is based on the net value of the previous trading day, so index funds, like stocks, are compound interest products.

Index fund is a fund that invests in an index way, and its goal is to obtain a return on investment roughly equivalent to the market average. Indexing investment is a kind of securities investment that attempts to completely copy a certain securities price index or build a portfolio according to the principle of compiling securities price index.