Personally, I prefer CSI 500. If you are optimistic about the future growth stock opportunities, the CSI 500 Index should be your good choice.

First, it's well written. The index consists of 500 large-scale and highly liquid A-share stocks except the constituent stocks of the Shanghai and Shenzhen 300 Index. The quality of constituent stocks is excellent, which saves investors the trouble of stock selection, and the weight of individual stocks is relatively scattered. The total proportion of the top ten heavyweights is only 5. 1 1%, which is beneficial to avoid the influence of single stock fluctuation on the index.

Second, the industry is good. In terms of industry distribution, the CSI 500 Index is dominated by emerging industries such as medicine, biology, computer and electronics. These industries have high growth and performance elasticity, which can promote the index to continue to rise.

Third, do it well. The data shows that in the past 10 years, the annualized rate of return of the CSI 500 Index was 6.8%, much better than the 2.66% of the Shanghai Composite Index and the 0.68% of the Shenzhen Component Index. At the same time, the valuation of CSI 500 index has been declining since the bull market high of 20 15. The latest index PE is 16.9 1 times and PB is 1.6 times, which is in the lowest range of historical valuation 1%.

There are three ways to play.

At present, there are nearly 60 CSI 500 index funds, so how to choose so many similar-looking funds? I think there are about three ways to play:

How to play 1: general index fund

As the name implies, it is to buy ordinary 500 index funds, including CSI 500ETF funds traded on the floor, ordinary 500 index funds traded over the counter, and CSI 500ETF connection funds.

They just passively copied the CSI 500 index and didn't do any other fancy operations. Generally speaking, this kind of variety is relatively large in scale, can accommodate a very large amount of funds for investment, and has stable performance, and is usually the favorite of institutional investors.

Overview of some ordinary CSI 500 index funds

(Deadline for data: 2019 65438+123 October)

In the above table, the author excluded the funds below 1 100 million yuan, with a total of 24 funds. At present, the largest 500 fund is the 5 10500 Southern CSI 500ETF, with a scale of 33.5 billion yuan.

Ordinary index funds passively track the CSI 500 index, and the performance gap is not big. The fund with the best performance in 20 19 is 5 105 10 guangfa CSI 500ETF with a yield of 3.59%; 1 year, last 2 years, last 3 years and last 5 years, the best performance is 1622 16 TEDA Manulife CSI 500; Judging from the annualized rate of return since its establishment, it is also the highest in TEDA Manulife CSI 500, with an annualized income of 8.38%.

From the charging mode, the management fee of ordinary index funds is 0.5%/ year, and the custody fee is 0. 1%/ year, which is also the average charging standard in the industry. However, the fees of three funds are twice as high as others, namely 1622 16 TEDA Hongli CSI 500,16551ICBC Credit Suisse CSI 500, 1655438+0. 1622 16 has a good performance, but the other two don't earn as much as others, and the fees are so expensive, which is a bit unkind.

Play 2: Enhance the index fund.

This kind of fund obtains excess returns through enhancement strategy. Generally speaking, they will allocate 80% of their positions to index stocks, and the remaining 20% will play some active management roles. In the past, most enhanced index funds have achieved excess returns, but a few are not as good as ordinary index funds.

Where does the enhanced excess return come from? There are probably several ways: first, innovation, second, the alpha income of active stock selection, and third, stock index futures arbitrage.

Overview of CSI 500 Enhanced Index Fund

(Deadline for data: 2019 65438+123 October)

As can be seen from the above figure, there are 22 enhanced CSI 500 index funds (A/C share is calculated separately). 000478 Jianxin CSI 500 Enhancement and Guo Fu CSI 500 Enhancement ranked in the top two, reaching 3.3 billion yuan and 2.9 billion yuan respectively.

In 20 19, the best performance was enhanced A by Jinzhong CSI 500, with a yield of over 4%. Unfortunately, the scale is too small, only 25 million, and the pace of liquidation is required in minutes. 16 1027 Guo Fu CSI 500 ranked second with a yield of 3.67%, which was better than the best-performing GF CSI 500 ETF among ordinary 500 funds (3.59%). From the recent 1 year, the enhanced 500 fund obviously underperformed the ordinary 500 fund. For example, 000478 has dropped by 3 1% in recent years, which is far lower than 95% of ordinary 500 funds. Judging from the situation in the last three years, enhanced funds still perform well. For example, the enhanced A/C of Jinchuang Hexin CSI 500 only decreased by 2.65% and 2.22% respectively, while the average decline of 500 funds in the same period exceeded 25%, indicating that there is still enhancement effect.

From the charging mode, enhanced index funds are much more expensive than ordinary index funds, with management fee 1%/ year, custody fee at most 0.2%/ year and management fee 1.2%.

Enhanced funds, in particular, have one of the biggest enemies, and that is scale. If a well-behaved enhancement fund is large in scale, the excess return will drop a lot. The most typical chestnut is 000478 Jianxin CSI 500 enhancement. The performance of this fund in 20 15 and 20 16 was very eye-catching. Later, the scale grew rapidly to several billion, leading to a decline in excess returns. The performance in the last two years is really not generally poor among similar funds.

Game 3: 500 Strategic Fund

The most typical example is the CSI 500 Industry Neutral Low Volatility Index (abbreviated as 500SNLV, code: 930782), in which 150 stocks with the lowest volatility are selected as constituent stocks. Low volatility strategy, like dividend strategy, is also a mature index strategy in the world. Don't worry about the long-term income, it will be much higher than the CSI 500 index. There are data and truth:

Comparison chart of CSI 500 low wave VS CSI 500 in recent 10 years.

Do you see it? In recent 10 years, the low volatility index of CSI 500 increased by 239.25%, while the index of CSI 500 increased by 87.09%, the former is three times that of the latter!

At present, the funds tracking the CSI 500 low-wave index are: 0033 18 Jingshun Great Wall CSI 500 Industry Neutral Low-wave ETF and 5 12260 Huaan CSI 500 Low-wave ETF, as well as connected funds. Huaan's two funds were established late.

On the whole, as a pure index fund, CSI 500 Low Volatility Fund has the same fund rate as ordinary index funds, with management fee of 0.5% and custody fee of 0. 1%, which is half cheaper than CSI 500 Enhanced Fund.