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You Don't Know How to Choose Nasdaq 100 Index Funds

@ZhanweiC
SIMPLIFIED CHINESEMay 20, 2026
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TL;DR

This guide analyzes Nasdaq 100 index funds in China, focusing on operating fees, tracking errors, and purchase limits to help investors choose the most cost-effective options for long-term growth.

Quick Conclusion

For long-term holding, prioritize: low operating fees + availability for subscription + decent scale. Nasdaq 100 fund underlying assets are highly similar; long-term performance gaps mainly come from fees, purchase limits, tracking errors, exchange rates, and cash positions.

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Comparison of Major Funds

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How to Evaluate Fees

Focus on three types of fees:

  1. Subscription Fee: Class A usually has a subscription fee (often discounted to 10% on Alipay); Class C usually has no subscription fee.
  2. Redemption Fee: Many QDII funds have high redemption fees (often 1.5%) if held for less than 7 days; after 7 days, some Class C redemption fees drop to 0.
  3. Operating Expenses: This is the most important, including management fees, custodian fees, and sales service fees, deducted daily from the NAV. Low-fee tier: Harvest A, Tianhong A, JPMorgan A are about 0.60%; Southern A is about 0.65%; Southern C is about 0.75%; Tianhong C is about 0.80%. High-fee tier: GF C is about 1.20%, Dacheng C is about 1.30%.

How to Evaluate Tracking Deviation

Nasdaq 100 QDII funds won't perfectly match the Nasdaq 100 Index every day. Deviations mainly come from:

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Don't worry too much about short-term deviations; focus on long-term tracking error and fees. The return difference between A and C classes usually stems from sales service fees.

Pros and Cons of Each Fund

GF: Large scale, established, strong operational experience; but fees are high, and the current 10 RMB purchase limit makes for a poor buying experience.

Huaan: Long history, large scale, mature tracking experience; but fees are not low, and it also has a 10 RMB purchase limit.

Guotai: An established Nasdaq 100 QDII. Currently, the 300 RMB daily limit on Alipay is friendlier than the 10/100 RMB tiers; however, the ~1.00% annual operating fee is high, making long-term costs higher than low-fee products like Tianhong or Southern.

Dacheng: Current limit is about 500 RMB, which is relatively friendly; but both A/C fees are high, especially Class C, which is not cost-effective long-term.

Harvest: Excellent rates (A ~0.60%, C ~0.85%), suitable for long-term allocation; but it may be suspended or restricted on Alipay, so check the order page.

Tianhong: Low rates, common for Alipay users. Class A is great for the long term, and Class C is also affordable; the downside is the low daily limit.

Southern: Class C rate is ~0.75%, very competitive among available funds, and the current 200 RMB limit is decent; suitable for small automatic investment plans.

JPMorgan: Class A has low rates and a long-term advantage; Class C rates are average, and the limit is not high.

HTFF/China Merchants: Class A rates are okay; Class C rates are high, inferior to Southern C or Tianhong C in the long run.

Wanjia/Baoying: Fees are not high, but keep an eye on scale and stability; better as backup options.

My Selection Logic

For small automatic investments on Alipay, I prioritize: Southern C, Tianhong A, JPMorgan A, Guotai, China Merchants A, and HTFF A.

If holding for over 1 year, prioritize Class A: Tianhong A, Southern A, JPMorgan A, Harvest A.

If the holding period is uncertain, prioritize low-fee Class C: Southern C, Tianhong C, Harvest C.

If you care more about buying more on a single day: Dacheng, Guotai, and Southern are friendlier, though Dacheng and Guotai have higher fees.

Final Advice

Don't just chase a fund because its one-year return is higher. Underlying differences in Nasdaq 100 passive funds are tiny. Long-term, what matters more is:

Availability, low fee rates, sufficient scale, stable tracking, and whether redemption rules suit you.

In the current restricted environment, the realistic approach is: Use low-fee products as your primary choice for small automatic investments; if the limit is reached, supplement with products like Guotai, Southern, or Dacheng that have friendlier limits.

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