Index investment is a very important investment method in securities investment. Usually, it refers to the investment method of dispersing funds according to the proportion of the stock market value of each listed company to the total market value of all listed companies included in the target index. Funds invested according to this indexation method are index funds.

ETF fund

ETF is the abbreviation of exchange traded fund, which is translated into "transactional open index fund" in Chinese, also known as exchange traded fund. ETF is an open-end securities investment fund product listed and traded on the exchange, and the trading procedure is exactly the same as that of stocks. The assets managed by ETF are stock portfolios. The types of stocks in this portfolio are the same as those in a specific index, such as the SSE 50 Index, and the number of each stock is consistent with the proportion of the constituent stocks of this index. The transaction price of ETF depends on the value of its stock portfolio, that is, the "net asset value of unit fund". ETF's portfolio usually completely replicates the underlying index, and its net performance is highly consistent with the specific index pegged. For example, the net performance of SSE 50ETF is highly consistent with the rise and fall of SSE 50 index.

LOF fund:

LOF is called "open-end fund" in English and "listed open-end fund" in Chinese. It has the advantages of convenient transaction of closed-end funds, low transaction cost and close net value of open-end funds. Investors can purchase and redeem general open-end funds through fund sales agencies or direct sales outlets, and can also buy and sell existing fund shares through the secondary market.

Variety:

According to different investment methods, ETFs can be divided into index funds and actively managed funds.

At present: SSE 50ETF(5 10050)

Shanghai Stock Exchange Dividend ETF(5 10880)

SSE180 ETF (510180)

SZSE100 ETF (159901)

Shenzhen SME ETF( 159902)

Index funds include: Huaan SSE 180 Index Enhanced Securities Investment Fund and Tiantong SSE 180 Index Fund.

Funds Xinghe, Jingfu, Xinghe, Pufeng and Tianyuan

Yin Hua-Dow Jones 88

Great Wall Jiutai 300 Index

Rongtong Shenzhen Stock Exchange 100 Index

Wanjia Shanghai Stock Exchange 180 Index

Jiashi CSI 300 Index

Huaan China A-share index

Financing tidal current 100 index

Bo Shi fish abundance index

yi fonda 50 index

Dacheng CSI 300 Index

LOF funds include: Rongtong Chaochao100 (161607), Wanjiagong (16 1903) and Nanfang Jipei (16010). Harvest 300( 160706) and southern gaozeng (160 106), BOC China (16380 1), industrial trends (163402). And Jing Shun Guo Fu Tianhui (16 1005), China-Europe new trend (16600 1), ABN Amro efficiency (162207), Penghua Power Growth (160

How to buy:

Index funds are subscribed by general funds.

Lof fund subscription:

After the listed open-end fund is approved to be listed and traded in Shenzhen Stock Exchange, investors can choose to purchase and redeem the fund shares at the net closing price of the fund shares in consignment agencies such as banks, or they can choose to buy and sell the fund shares at the matching transaction price in the member securities business department of Shenzhen Stock Exchange.

The purchase and redemption procedures in banks and other consignment agencies are the same as those of ordinary open-end funds.

The trading methods and procedures in Shenzhen Stock Exchange are basically the same as those of closed-end funds. The declared purchase quantity is 100 or its integral multiple, and the minimum change unit of the declared price is 0.00 1 yuan. The formation mode and mechanism of the transaction price of listed open-end funds are consistent with that of A shares.

Etf subscription: Unlike open-end funds that use cash for subscription and redemption, ETFs use a basket of index stocks for subscription and redemption of fund shares.

Investors can purchase and redeem the stock basket and part of the cash ETF according to the purchase and redemption list (stock basket list+part of the cash share) published by the fund manager before the opening of each trading day.

Risk level:

In the short-term market imbalance of LOF funds, the transaction price may fluctuate greatly, deviating from the net value of fund shares, and investors face greater risk of price fluctuation when buying and selling LOF funds. "In addition, there is the risk of the fund's own income, the risk of the fund company's management ability and the risk of unstable fund shares brought by market risks.

Etf risk: (1) unable to exceed the index performance (2) systemic risk of the underlying index (3) unable to change the portfolio at will (4) unable to enjoy the rights of direct shareholders (5) tracking error risk. In addition, it may also face the risk that the transaction price will fluctuate greatly due to market supply and demand.

Index fund risk:

Index fund is equivalent to the fluctuation of index. It is also a big risk. For example, the Shanghai Composite Index will fall like a waterfall, and index funds will also fall by the same amount, and the handling fee will be deducted more.

Generally speaking, index funds are risky. At present, domestic ETF funds mainly track indexes, so the risk is also high.

Analysis method: fund comparison, examining information such as fund portfolio and performance.