In the American stock market, after nearly 15 years of rapid development, the development of strategic index and related funds has been very mature. In 20 19, the number of Smart Beta products in the United States accounted for nearly half, accounting for about 1/4 of the total scale.
Many studies show that it can effectively improve the income, earn more in the bull market and stabilize the crisis in the bear market.
However, in China, the strategic index is still in its infancy. Although domestic index companies developed some strategic indexes in the early stage, few people paid attention to them, and the overall scale could not keep up.
After the fund is developed, no one buys it, and the fund company has to spend a certain operating cost to manage it. No one wants to study such a thankless thing. It is better to develop a broad-based index or industry index that is more sought after by domestic investors.
Therefore, only the strategic index is often available, and there is no strategic index fund. This also led to the strategic index income, although good, but very little.
In the final analysis, domestic investors do not know enough about the strategic weighted index and know little about its investment advantages.
Can the strategic weighted index really help us make more money?
How do they help us make money?
Keep reading, and you will gain more.
First, the concept of strategic weighting index
Because many domestic strategic weighted indexes are optimized from market value weighted indexes, in order to help understand, let's start with market value weighted indexes, which is our common broad-based index.
There are thousands of stocks in the stock market. In stock selection, the broad-based index will sort all the stocks by market value, and then allocate the proportion (weight) according to the ranking. For example, the SSE 50 Index selects the top 50 A-share market value, and the CSI 500 Index selects around 300-800. ...
This stock selection method is simple and rude, but it is very effective in ensuring the general direction of investment return.
Enterprises that can become bigger in the stock market often have several brushes. The probability of black swan is low and the income is basically guaranteed.
However, many strategic weighted indexes artificially select different conditions to further screen stocks on the basis of broad-based indexes.
This makes the strategy index have the characteristics of combining subjective selection with objective data. This also makes it different from those companies that rely on fund managers and the decision-making process is not open.
The strategy design of the strategy index is mostly very open and transparent, which helps novices to understand the specific application and implementation of the strategy and feel more at ease when investing.
Of course, if there is a public strategy index, there will be a non-public strategy index. For example, the CCTV 50 index is compiled by experts from CCTV and Peking University. Its stock selection criteria are not public, and only the composition adjustment is announced regularly, but in the long run, the income is still very considerable.
Second, the classification of strategic indicators
Aside from the bottoming effect of broad-based index, we can divide the strategic index into dividend type, fundamental type, low fluctuation type and value type only by looking at the strategy screening conditions.
There are also some strategic weighted indexes that are not based on broad-based indexes, and only select stocks in the stock market according to the index screening conditions to form corresponding indexes.
At present, dividend index products are the most, followed by value index, low volatility index and fundamental index.
1, dividend index
No matter at home or abroad, dividend index is very popular because its stock selection strategy has natural advantages.
The index bonus comes from the cash bonus paid by many companies every year.
If a company has good performance and high profits in that year, it will agree in advance to distribute part of the profits to every investor who holds shares in the company.
At this point, investors do not need to consider the bid-ask price difference, but only need to hold the stock all the time and get the corresponding cash dividend. It's like buying a goose that keeps laying golden eggs. As long as the company continues to make profits, with the continuous improvement of production efficiency, investors will get more and more dividends.
Getting a steady income from dividends every year is also a big reason why many experienced investors outperform others in the long-term investment process.
This idea of making money by dividends is applied to the strategic index, which is the dividend index.
(1) Taking the oldest dividend index of Shanghai Stock Exchange in China (0000 15, generally referred to as "dividend index", pay attention to the distinction) as an example, 50 stocks with the highest average cash dividend rate in recent two years are selected from Shanghai Stock Exchange to form the index.