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The value of 3 and the constituent stocks of China Securities Bank are repeated too much. Why do they hold them at the same time?

As for the 3 Value Index Fund and the two index funds of China Securities Bank, several friends have left messages on Planet and backstage. To sum up, the following three are of great concern to everyone. I think there are other friends who are also related, so I use an article to explain:

1. The 3 Value Index Fund and the two index funds of China Securities Bank have a large overlap. Why do they vote?

2, 3 value can't beat the Shanghai and Shenzhen 3?

3. China Securities Bank keeps falling. Why did it still invest?

The reason for choosing the 3 value index first is that the 3 value target is the Shanghai and Shenzhen 3 index.

3 value is to select 1 stocks from the Shanghai and Shenzhen 3 Index, and the 1 stocks with the highest value factor score are used as constituent stocks; The so-called value strategy is to select stocks according to the valuation values such as P/E ratio and P/B ratio, so it tends to choose varieties with lower P/E ratio and P/B ratio.

the difference between the two: the Shanghai and Shenzhen 3 Index is weighted according to the market value, regardless of the valuation; The value of 3 is to select low-valued varieties from the Shanghai and Shenzhen 3.

how effective is this 3-value strategy?

let's compare the historical returns of the two indices:

in 219, the Shanghai and Shenzhen stock exchanges were 3(36.7%) and 3 value (24.14%)

in 218, the Shanghai and Shenzhen stock exchanges were 3(-25.31%) and 3 value (-19.5%)

. 3 value (32.33%)

216: CSI 3(-11.28%), 3 value (-4.74%)

215: CSI 3(6.55%), 3 value (4.97%)

5 years.

Therefore, the value of 3 was chosen to replace the Shanghai and Shenzhen 3 Index.

Secondly, the overlapping degree of bank components of the two funds:

Indeed, among the 3 values, the proportion of bank components is 48.5%, so why did you choose the CSI Bank Index?

My logic is as follows:

1. Index Fund of China Securities Bank: including 32 listed companies in the banking industry such as construction, agriculture, industry and communications! Simple logic: choose to put money in the bank and get interest; Or buy shares in 3 banks and earn with them.

2. At present, the dividend yield of the CSI Bank Index is 4.2%, which is better than the money fund.

3. As an industry index, the current valuation of China Securities Bank is very low, close to the historical bottom area, and it has the advantage of being cheap.

In the current situation, when the valuation is generally normal or high compared with other indexes, I choose the cheap and conservative China Securities Bank.

The bank index is characterized by defensive investment, not offensive investment. If there are other excellent strategic indexes or industry indexes in the future, such as Fundamental 6, consumption, liquor and medicine, which have cheap buying opportunities, I will choose to replace them.

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Knowledge is wealth.