The first big data index Tencent Jian Index is an index with very good returns, but many index funds tracking Tencent Jian Index have lost the index. What is the reason? Can big data index funds make money?
The compilation principle of CSI Baidu Baifa Strategy 100 Index is based on quantitative investment technology, plus the market trend of Internet big data and investor sentiment. Generally speaking, it means that the popularity of a stock has increased. When everyone pays attention to the stock and speculates on it, what is his first step? It's true that Baidu is just a little bit better, so who can catch up with Baidu when it comes to listening to news and chasing hot spots. Baidu can get the latest market hot spot conversion and investor sentiment change at the first time, which is called market trend based on Internet big data and investor sentiment judgment.
However, many investors were surprised by their expectations when they first invested. As a result, the performance of the fund after its establishment was really unsatisfactory. Why does this happen? There are three main reasons.
1. Big data index uses more advanced technical means, so its operation and management costs are higher than that of traditional index funds. When the costs are higher, the benefits will naturally come down.
2. These two indexes are adjusted once a month, which has little impact in the bull market, but such frequent transactions in the continuous bear market make the transaction cost even higher.
3. These two indexes produced a strong loss effect in the continuous bear market, which in turn led to investors redeeming one after another, and the fund shares changed frequently and were shrinking constantly. On the other hand, the tracking error of index funds on the index produced a large deviation.
The above three reasons are the specific reasons for the underperformance of index funds.
In addition to BAT's three big men who were the first to eat crab, a group of second tier companies with huge amounts of big data also developed their own big data index. For example, the I index series jointly developed by China Southern Fund and Sina Finance in September 2014 includes two indexes, namely Big Data 100 and Big Data 300. But the results are almost the same, unable to laugh in the stock market.
