Recently, A-shares have adjusted significantly. As of November 15, the CSI 300 and other indices fell below the 20-day moving average, and there was also a significant decline in sentiment. Please see the upward trend chart of total market financing below for details. Source: Win

Recently, A-shares have made significant adjustments. As of November 15, indices such as the Shanghai and Shenzhen 300 fell below the 20-day moving average, and there was also a significant decline in sentiment. Please see the upward trend chart of total market financing below for details.

Source: wind, time 2024.11.15

But in the market, a long force called CSI A500 Index Fund is growing rapidly and is ready to go. According to data from the Associated Press of Finance, since the release of the CSI A500 Index on September 23, 2024, the number of funds linked to the CSI A500 Index has increased rapidly. As of November 14, the total size of the 13 ETFs linked to the CSI A500 Index has reached 121.031 billion yuan. According to wind data, since its birth, the CSI A500 Index has accounted for close to 4% of the market in less than 2 months and has become the second largest index fund in the market. Among them, the scale of of China Merchants China Securities A500 Index ETF (sh560610) has now exceeded the 13 billion yuan mark, demonstrating strong market recognition and strength background.

What is CSI A500 Index Fund? CSI A500 Index Fund is a fund product that tracks the CSI A500 Index. The CSI a500 index is the broad-based index developed and released by China Securities Index Co., Ltd. It is also the first featured broad-based index to debut since the implementation of the new "National Nine Articles" of the capital market guidance document that was specially issued after 10 years. .

In terms of industry allocation strategy, the CSI A500 Index particularly prefers to invest in emerging industries outside of traditional sectors such as non-bank finance, banking, food and beverages, agriculture, forestry, animal husbandry and fishery. These industries show excellent profit potential. Compared with the Shanghai and Shenzhen 300 Index , the CSI A500 Index appears to be more balanced in terms of industry composition, with a larger proportion of emerging industries, and can better reflect the comprehensive characteristics of China's A-share market in an all-round way. What is particularly worth noting is that according to wind data, as of the second quarter of 2024, although the constituent stocks of the CSI A500 Index only account for about 10% of the total number of stocks in the entire market, the constituent stocks have created nearly 70% of the A shares. Net profit share.

Judging from historical data, the current valuation of the CSI A500 Index is also relatively safe. According to wind data, as of November 15, 2024, the price-to-earnings ratio ttm of the CSI A500 Index was 14.52, the percentile was 53.92%, the median was 14.30, and the risk value was 16.39. It is still at a relatively safe position in historical valuation.

CSI A500 Index price-earnings ratio ttm trend chart

Source: wind, time 2024.11.15

in countercyclical monetary and fiscal policy With the strong support of policies and the U.S. dollar interest rate cut cycle, A-share listed companies should be more optimistic in terms of performance expectations and capital inflows. In addition, the current valuation of the CSI A500 Index is not high based on historical data. is undergoing adjustment in the current market time, the CSI A500 Index deserves investors' attention to the investment opportunities that exist within it.

Among the products tracking the CSI a500 index, the investment CSI a500 index etf (560610) mentioned above, which has a scale of more than 12 billion yuan, is very good . The ETF not only has low operating costs, including a 0.15% management fee and a 0.05% custody fee, but also implements an attractive dividend policy: on the last trading day of each quarter, the ETF will be compared to the CSI A500 Index If the excess return exceeds 0.01%, mandatory dividends will be distributed, and the distribution ratio will not be less than 80% of the excess return, which will help to flexibly meet the cash flow needs of investors and further optimize and enhance the investment experience.

posted: Shan Yuqiu