The classification of indices is primarily based on dimensions such as underlying asset type, coverage scope, methodology, and geographical distribution, which can be summarized into the following core categories:

By Underlying Asset Type

• Equity Indices: Reflect the performance of the overall stock market or specific sectors (e.g., CSI 300, Nasdaq 100).

• Bond Indices: Track the overall trends of the bond market (e.g., ChinaBond Composite Index).

• Commodity Indices: Reflect price movements of bulk commodities (e.g., CRB Index).

By Coverage Scope

• Broad Market Indices: Cross-industry, cross-market comprehensive indices (e.g., CSI 300, S&P 500).

• Sector/Thematic Indices: Focus on specific industries or themes (e.g., CSI Consumer, Photovoltaic Industry Index).

• Strategy Indices: Constructed based on specific factors or rules (e.g., Low Volatility Strategy Index).

By Methodology

• Market-Cap Weighted Indices: Weighted by company market capitalization (e.g., S&P 500).

• Equal-Weighted Indices: Equal weight for each constituent (e.g., CSI 500 Equal Weight).

• Price-Weighted Indices: Weighted by stock price (e.g., Dow Jones Industrial Average).

By Constituent Composition

• Composite Indices: Include all sample stocks (e.g., SSE Composite Index).

• Component Indices: Select representative samples (e.g., Nasdaq 100).

By Geographical Distribution

• Domestic Indices: Cover only the domestic market (e.g., ChiNext Index).

• International Indices: Involve global markets (e.g., MSCI Emerging Markets Index).

Key Differences

1. The core distinction between broad market and sector/thematic indices lies in coverage scope; the former is more comprehensive, while the latter focuses on niche areas.

2. Market-cap weighting vs. equal/price weighting affects index style: the former emphasizes the impact of large-cap stocks, while the latter may enhance the performance of small- and mid-cap stocks.