What is an index fund? It is reported that the index fund, as its name implies, is a fund that invests in index stocks. That is, by buying some or all of the stocks contained in an index, an index fund's portfolio is constructed, with the purpose of making the change trend of this portfolio consistent with the index, so as to obtain roughly the same rate of return as the index.

Index fund means that the fund operates according to the selected index (such as standard &; Poole 500 index), Japan's Nikkei 225 index, Taiwan's weighted stock price index, etc. ), choose the same asset allocation model to invest in order to obtain the income synchronized with the market.

At present, there are more and more index funds in the market, and it is more and more difficult to choose index funds. Investors should pay attention to two points when choosing index funds: on the one hand, it is as difficult to find such an index as to choose stocks; On the other hand, choose index funds with smaller investment tracking errors. The smaller the tracking error of funds, the stronger the management ability of fund managers, and the more investors can achieve the goal of obtaining index returns.