Index products are the favorite of public offering FOFs.
In the context of the racetrack-like market dominated by industry styles, public offering FOF fund selection strategies are beginning to "abandon" actively managed equity funds, with index products becoming core holdings. As the stock market increasingly reflects industry beta characteristics, index funds with stable styles and predictable and researchable holdings have become the preference of many FOF fund managers, reducing the time and uncertainty spent on researching actively managed equity funds. The top ten FOF products in terms of performance this year almost all have index funds as their core holdings, resulting in a significant decline in the presence of actively managed equity funds.
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