QDII Index Funds Analysis

Abstract

Although plenty of research has been done on domestic stock market index funds, few has talked about QDII index funds. QDII, Qualifi ed Domestic Institutional Investor, is a qualifi ed domestic investor who is allowed to make indirect investment in overseas markets. This report is written to discuss the QDII index funds which have last for more than three years in Chinese securities investment market. These index funds, classifi ed by their investment targets, include S&P 500 Index, NASDAQ Index,Hang Seng Index and other regional and industrial index. The comparative indicators used in the report include three years’annualized rate of return, standard deviation and sharp ratio, and grouping to analyze diff erent kinds of index funds. Report reach the conclusion that the market of QDII index funds has great potential, while investing in QDII index funds can help decentralize global assets and acquire profi ts. Besides, report provides recommendations to government, fi nancial institutions and investors.