Investment and application of 300ETF
With the resolution of technical obstacles, it is possible to track cross-market index ETF products. A number of Shanghai and Shenzhen 300ETF products, including E Fund (HS 300ETF, 5 103 10), have been listed on the Shanghai and Shenzhen Stock Exchanges. 300ETF made up for the huge vacancy of trading tools in the securities market and developed into the largest ETF product with the best liquidity in a short time. In the current market situation, the key points of 300ETF allocation transactions in the future can refer to the following directions.
First, the core configuration. The market value coverage, dividends and net profit of the constituent stocks of the Shanghai and Shenzhen 300 Index all exceed 70% of the whole market. Because of its good representativeness, the 300 Index has gradually become the benchmark index of the A-share market since its release in 2005, and it has also become the most important performance reference benchmark for most institutional investors. As a standardized and low-cost 300ETF product, it has also become a core investment tool for institutions to reduce the deviation of long-term investment expectation annualized expected return target. On the other hand, the Shanghai and Shenzhen 300 Index is at the bottom of the historical valuation range and at the low end of the market valuation structure differentiation. In the long run, if we continue to deviate significantly from the 300 benchmark allocation, the risks faced by investors will also be at a high level. The industry believes that in the next few years, the role of Shanghai and Shenzhen 300ETF as the core and basic allocation tool of institutional investors will become more and more obvious.
Second, trend investment. Although the overall performance of the 300 index is not satisfactory in recent years, the short-term fluctuation of the 300 index is still quite significant with the decline of the valuation center of gravity and the further differentiation of the valuation structure in recent years. Judging from the monthly expected annualized expected return data, in the 44 months since 20 10, the expected annualized expected return of the Shanghai and Shenzhen 300 Index exceeded 5% in nearly one quarter of the months. According to the weekly data, the expected annualized expected return of the 300 index in the past quarter exceeded 2%. Even in the overall downward trend, the 300 index still has a large band of expected annualized expected returns. The A-share market, characterized by short-term fluctuations in emerging markets, provides an important foundation for short-term trend investment, while the scale and good liquidity foundation of E Fund's Shanghai and Shenzhen 300ETF provide an efficient and low-cost investment tool for trend trading based on market judgment.
Third, hedging tools. Stock index futures and margin financing and securities lending provide the premise for various applications of ETF products as hedging tools in China in recent years. In this application, the purpose of buying and selling ETF is not to obtain the expected annualized return in the index direction, but to hedge the market risk of investors in another direction. Judging from the development experience of overseas markets, the future development of various derivatives based on the 300 index level will also provide more room for the application of 300ETF at this level.