Comprehensive Evaluation, Based On Principal Component Analysis Method And Entropy Method Of Index Funds

Indexfunds is a new kind of investment funds and finance deriveative tools.It came into being and developed graduatly in 1970's. The indexfunds have the adventages as follow:prevent investing risk, lower expenses on investment.Furthermore,the growing up rapidly of the indexfunds on the world stock market could embody all those merits fully.In China,It is relatively late that the index fund enters the market and indexfunds is at primary stage of development.With the constant standardization of security market in our country,Investors pay more and more attention to the indexfunds.In addition,our country developed and carried on the bold attempt in the indexfunds in recent years.For example, being a new kind of indexfunds,Exchange-traded-Funds was introduced to China and have made greater success.In this paper,through studing the domestic and international method of evaluateon of funds and combining the characteristic of the index fund,the author set up an indicator system to evaluate indexfunds.The indicator system is Set up from five respects as follow:ability of tracking the basic index,ability of obtaining incomes,ability of controlling the risk,investment and management ability of the fund manager and expense level of the indexfunds.There are five second indicators and 22 tertiary indicators.In this paper,I evaluate the sample indexfunds during stabilizing and fluctuating period with the toothed of Principal Component Analysis combines Entropy Method,and evaluate all second indicators and comprehensive levels of sample indexfunds.Finally, through the empirical analysis,we get the second indicators and comprehensive levels ranking of sample indexfunds during stabilizing and fluctuating period.