Which is better, Shanghai and Shenzhen 300 or Shanghai 50?
SSE 50 Index: It consists of 50 most representative A-shares with large scale and good liquidity in Shanghai stock market, reflecting the stock price performance of a group of leading companies with the most influence in Shanghai stock market.
Shanghai and Shenzhen 300 Index: It is composed of 300 stocks with large market value and good liquidity in Shanghai and Shenzhen stock markets, which comprehensively reflects the overall performance of listed stock prices in China A-share market.
(Index performance in recent 5 years, source: China Securities Index)
Judging from the index performance in the past five years, the five-year annualized rate of return of the Shanghai and Shenzhen 300 Index is 9.77%, and the five-year annualized rate of return of the Shanghai Stock Exchange 50 Index is 9.44%. There is little difference between these two general trends.
Judging from the number of stocks, the number of stocks included in the SSE 50 Index is far less than that of the CSI 300, which means that the CSI 300 is more dispersed.
(Industry weight distribution, source: China Securities Index)
Judging from the industry weight and the top ten heavyweights, the industry distribution of SSE 50 is relatively concentrated, with financial real estate accounting for 36.93%, followed by large consumption, but Kweichow Moutai accounts for a very high proportion.
The Shanghai and Shenzhen 300 industries are relatively evenly distributed, and they are mainly financial real estate, but the main consumption, industry and information technology all occupy a lot of proportion.
(Top Ten Heavyweights, Source: China Securities Index)
20 18, the weight of financial real estate industry in SSE 50 is as high as 66.2%. Therefore, many investors believe that most of the 50 SSE companies are financial blue chips, and the industry concentration is too high, which is easily influenced by the financial industry. However, we can find that the weight of the SSE 50 financial real estate industry has gradually decreased compared with before. (The deadline for the above data is 202 1.07.08)
In short, there is little difference between the two indexes. If you have confidence in economic development, you can choose your own investment direction according to the above analysis. However, it is not recommended to buy at the same time because the stocks contained in the Shanghai and Shenzhen 300 have completely included the SSE 50.