1. First is the Huaxia Pharmaceuticals ETF (510660), which is a closely tracking SSE Pharmaceuticals & Healthcare Sector Index, with a tracking error of 0.19%, and was established on March 28, 2013, and belongs to the on-market fund.
2. Next is Harvest CSI Healthcare ETF (512610), which closely tracks the CSI Healthcare Index with a tracking error of 0.04%.
3. Then there's the Guangfa CSI All-Index Pharmaceuticals & Healthcare ETF (159938), which closely tracks the All-Index Pharmaceuticals Index with a tracking error of 0.03 percent.
4. Finally, there's the Efonda CSI 300 Healthcare ETF (512010), which closely tracks the CSI 300 Healthcare Index with a tracking error of 0.08 percent.
An index fund, as its name implies, is a fund that takes a specific index (such as CSI 300, S&P 500, Nasdaq 100, Nikkei 225, etc.) as its underlying index and invests in the constituent stocks of that index, constructing a portfolio by purchasing all or some of the constituent stocks of that index. A fund product that tracks the performance of the underlying index.
Second, in the face of many index funds, how should investors choose?
1. Pay attention to the strength of the fund company - fund first.
When choosing any fund, the strength of the fund company should be the first factor that investors pay attention to, and index funds are no exception. Although the index fund is a passive investment, the operation is relatively simple, but tracking the underlying index is also a complex process, requiring sophisticated calculations and rigorous operational processes. Stronger fund companies are often able to track the underlying index more closely.
2. Focus on fund fees - cost wins.
Relative to actively managed funds, one of the advantages of index funds is low cost, but different index fund fees "low" degree is different, minimize investment costs is very necessary. Of course, it should be noted that the lower cost is important, but the premise is that the fund's good returns, do not seek one-sidedly lower costs and blindly choose index funds.
3. Focus on the underlying index - top priority.
The core of an index fund lies in the index it tracks, so it's especially important to understand the market it corresponds to when selecting an index fund. In addition, investors can also invest in different index funds to achieve the purpose of asset allocation.