Consequences of Index Fund and ETF Regulations and Restrictions

The original intention of the Index Fund and ETF Regulations and Restrictions is to limit the concentration of holdings, but the result is that the trends of market indexes and ETFs are almost linked to these few large-capitalization stocks. As long as these few large-capitalization stocks surge or plummet, these automated programmed transactions will be triggered, and huge amounts of buying and selling will occur simultaneously.

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