Broad-based indexes: SSE 50, CSI 300, CSI 500, GEM, Dividend Index, Fundamental Index, CCTV 50, 50AH, Dividend Opportunity and so on.
Sectoral indices: Sectoral indices are also known as narrow-based indices, like broad-based indices include a wide range of industries and do not limit the industry, while narrow-based indices have certain requirements for the industry.
According to the global industry classification standard jointly introduced by S&P and Morgan Stanley in 2000, it is divided into 10 primary industries, 24 secondary industries, and 67 sub-industries, and industry indexes have been established (our country is also divided according to this standard).
The top 10 primary industries are:
Materials: metals, mining, chemicals, etc.
Consumer discretionary: automobiles, retail, media, real estate, etc.
Must-have: food, tobacco, furniture, etc.
Energy: energy equipment and services, oil, gas, etc.
Financials: banks, insurance, brokerage firms, etc.
Pharmaceuticals: healthcare, pharmaceuticals, biotechnology, etc.
Industrial: aerospace, transportation, building products, etc.
Information: hardware, software, information technology, etc.
Telecommunications: fixed line, wireless, telecom services, etc.
Public **** utilities: electricity, water, etc.
These 10 industries are all integral parts of society.
2. Representative index funds in Hong Kong, China:
Hang Seng Index, State-owned Enterprises Index (H-shares)
3. Representative index funds in foreign countries:
United States: Nasdaq 100, S&P 500
Germany: DX30
From a long-term investment perspective, it is more reasonable to choose an index with a wider coverage. It makes more sense to choose an index that covers a wider range of sectors so that you can avoid the risks associated with a single industry or sector. Therefore, CSI 300, CSI 500 and GEM are suitable indices for long term investment, with some stylistic differences between them, so you can choose according to your own preferences.
Shanghai-Shenzhen 300 index selects the top 300 stocks with the highest market capitalization and better liquidity in Shanghai and Shenzhen, so it covers the leading companies in Shanghai and Shenzhen, and if you prefer stable blue chips, you can use CSI 300 as an investment target. Corresponding index products include Huatai BORI CSI 300 ETF, Huaxia CSI 300 ETF, and Harvest CSI 300 ETF, all of which have a size of 20 billion yuan and better liquidity.
The CSI 500, on the other hand, selects the top 500 stocks with the highest market capitalization and better liquidity than the constituents of the CSI 300, and has better growth than the CSI 300. Corresponding index products in the largest South CSI 500 ETF liquidity is better.
The GEM is an index compiled according to certain rules based on market capitalization and liquidity, and includes 100 GEM stocks. Compared with CSI 300 and CSI 500, GEM index has better growth but also higher volatility. The corresponding index-based products in the largest size of the Efonda GEM ETF liquidity is better.