Is CSI dividend index a broad-based index? What index funds are there?

The birth of index funds was once regarded as a joke by Wall Street. However, with the passage of time, index funds have proved that they are an indispensable part of the fund market and are widely loved by investors.

But when many investors invest in index funds, they often don't know whether a fund is an index fund. In other words, it is just unclear whether this index fund belongs to a large-scale index or an industry index. In fact, as long as we understand the index, we can naturally understand the index fund.

There are many criteria for the classification of indicators. According to the representativeness of indexes, the indexes in the market can be basically divided into three categories, namely, comprehensive index, broad-based index and narrow-based index.

Composite index

Composite index means that the constituent stocks of the index include all the stocks of listed companies, and such an index can reflect the ups and downs of the whole market.

The Shanghai Composite Index and Shenzhen Composite Index, which we hear the most, are typical composite indexes. For example, the constituent stocks of the Shanghai Stock Exchange are all listed on the Shanghai Stock Exchange. The biggest function of the composite index is to let us know the market state at a glance.

Broad-based index

The constituent stocks of broad-based index should cover multiple industries and represent a certain range of stock market trends. Common SSE 50 index, CSI 300 index, CSI 500 index and GEM index all belong to broad-based index.

In addition, there are several broad-based indexes, including CSI series index, dividend index and fundamental index.

Industry index

The index is an industry index with industry restrictions when selecting constituent stocks. The constituent stocks of an industry index come from a specific industry or focus on a specific investment theme. Different from composite index and broad-based index, industry index covers more industries and stocks, so the investment risk is higher than broad-based index, and of course the income may be higher.

From the perspective of large industry classification, the industry index mainly includes 10 first-class industries. Judging from the actual data of A-shares, the consumption of necessities and medicine are the two best performing industries in history, because these two industries are naturally easy to make money and are also the key targets of our investment industry index.

In addition, besides 10 industry index, there are also some industry index funds that invest according to a certain theme, which can also be understood as narrower and finer industry index funds, such as liquor industry, environmental protection industry and military industry.

CSI Series Index in Broad-based Index

The CSI index series are all indexes weighted by market value, compiled and operated by CSI Index Co., Ltd., including CSI 100 index, CSI 200 index, CSI 300 index and CSI 1000 index.

Dividend index in broad-based index

The dividend index mainly selects stocks with higher dividend yield. Four common dividend indexes, such as Shanghai Stock Exchange dividend, Shenzhen Stock Exchange dividend and dividend opportunity index, cover the companies with the highest dividend yield in Shanghai Stock Exchange and Shenzhen Stock Exchange respectively, with the number ranging from 40 to 100.

Basic index in basic index

Fundamental index is a comprehensive survey of enterprise fundamentals from four dimensions: operating income, cash flow, net assets and dividends. It mainly includes the fundamental 50 index, the fundamental 60 index and the fundamental 120 index.

For each type of index, different fund companies will develop different index fund products.

Generally speaking, for novice investors, it is recommended to invest in broad-based index funds, which are relatively simple and stable, and industry index funds are relatively complicated, which is suitable for investors with certain investment experience.

The above is the introduction of index funds, I hope it will help you.