Personally, I think there are probably two reasons:

First, the science and technology innovation board steals the limelight. On the eve of the Spring Festival, the science and technology innovation board and its registration system were accelerated. As the most important reform of China's capital market in 20 19, since the name science and technology innovation board was born, there have been endless speculations about the design of its trading system and the quality of the first batch of enterprises. Some people say that the science and technology innovation board has a high level of decision-making and high priority, which may be unprecedented in Dou Shi's capital and even financial fields. Many people are worried that the science and technology innovation board will divert market funds, especially the target GEM.

The second is the impairment of goodwill. Under the influence of the expectation of goodwill impairment, GEM is the worst performance among A-shares and even the world's major indexes this year. This week is the last week before the Spring Festival holiday, and it is also the intensive disclosure period of the annual report forecast of GEM companies with performance risks. The gem is about to see the dawn from the darkest moment.

Is GEM worth investing in?

Personally, I feel that science and technology innovation board will not impact GEM vertically, while science and technology innovation board's influence mainly lies in the impact of the destruction of shell value on the original A-share market. It has obvious influence on companies with poor performance and small market value, but has little influence on the growth industry itself. According to the analysis of many research institutions, the launch of science and technology innovation board is conducive to enhancing market activity and boosting market popularity. Moreover, from the demonstration effect, if there is an unexpected rise in science and technology innovation board, it may form a valuation linkage, which will drive the valuation of core technology stocks on the GEM to increase.

Let's look at the industry distribution of the Growth Enterprise Market Index (399006):

See? Medicine, biology, computer, media, electronics and other industries rank among the top four in the GEM index, which are high-growth emerging industries and represent the backbone of China's new economy.

Growth enterprise market index was released on June 1 day, 20 10, basis point 1000 points. During the period of 20 15 mad cow, the index started from the lowest point of 585 points in 20 12 and rose to 4038 points in 20 15, with an increase of 590%. Now, what is the Growth Enterprise Market Index? As of the close of 65438+1260 on October 28th, it has fallen to1260, with a drop of 69%, which is equivalent to a 30% discount on the highest point of the index.

Judging from the valuation, the latest PE of the current GEM index is 28.5 times, which is significantly lower than the historical average of 52 times, and it is in the historical valuation percentile 1.52%, which belongs to the extremely low valuation range.

How to choose GEM funds?

Compared with the 500 CSI companies, there are fewer fund members tracking the GEM index, with a total of less than 30, and about half of the funds are below 654.38 billion yuan. Here, the author excluded the funds with a scale of less than 20 million and got the following 25 funds (AC share is counted separately).

List of some GEM index funds

(Deadline for data: 2019 65438+1October 27th)

As can be seen from the data in the above table, among the 25 GEM funds, 24 are ordinary index funds, and only 1 enhanced fund1613 financial GEM index has enhanced A. ..

In terms of fund scale, the largest fund at present is 1599 15 E Growth Enterprise Market ETF, with the latest scale of 186 billion yuan, which is a well-deserved giant. In addition, the growth enterprise market of Guo Fu 16 1022 reached 5.7 billion yuan.

From the fund rate, the management fee of most GEM funds is 0.5%/ year and the custody fee is 0. 1%/ year. However, the fees of 16 1022 Guo Fu Growth Enterprise Market and 160637 Penghua Growth Enterprise Market are twice as high as those of similar funds, with management fee 1% and custody fee of 0.22%. Only 1 enhancement fund1613 has a management fee of 1% and a custody fee of 0.2%.

In terms of performance, the best performance in 20 19 was 159952 Guangfa Growth Enterprise Market ETF, with a yield of 1.32%. Recently 1 year, the best-performing 003766 Growth Enterprise Market ETF Connection C fell by 26.85%, which was less than that of similar funds. The best performance in the last two years, the last three years and the last five years is 159908 Boss Growth Enterprise Market ETF. Unfortunately, the scale is too small, only less than 40 million, and it is a direct PASS. Judging from the annualized income since its establishment,1613 shows its enhanced strength, with an annualized income of 5.89%, which is the highest among similar funds. In addition, the annualized income of 1599 15 also exceeds 4%.

To sum up briefly:

1. In terms of on-site funds, E Fund Growth Enterprise Market ETF, Guangfa Growth Enterprise Market ETF and Southern Growth Enterprise Market ETF are large in scale, with good liquidity and low rates;

2. In terms of off-exchange funds, E Fund's GEM ETF is connected to A, and Tian Hong GEM A/C has a large scale and a low rate;

3. If you are really optimistic about the enhancement strategy, you can choose to raise GEM to enhance A, but in the last two years, the enhancement effect is not obvious, which is basically similar to ETF funds and even exceeds the decline of such funds. Of course, the rate of enhanced funds is also higher.