As we all know, the Shanghai and Shenzhen 300 Index consists of 300 stocks with the largest market value (which of course means very good liquidity) in the main board of Shanghai and Shenzhen. The CSI 500 Index consists of the top 500 stocks with total market value after the main boards of the two cities exclude the constituent stocks of the CSI 300 Index (the top 300 stocks with total market value). Therefore, the fund tracking CSI 500 index is a standard index-based broad base that spans the stock style of the main board of Shanghai and Shenzhen stock markets.
Reason 2: We have outperformed the Shanghai and Shenzhen 300 Index for many years in history.
Although the increase of CSI 500 index (3.79%) in 20 17 years is not worth mentioning compared with the increase of CSI 300 index (19.88%), there are indeed many years in history, and the increase is far ahead of CSI 300. For example, 20 13 leads the Shanghai and Shenzhen 300 by nearly 25%, and 20 15 leads by over 38%. Even from the perspective of five-year annualized income, it is slightly ahead of the Shanghai and Shenzhen 300 Index.
Reason 3: CSI 500 is more volatile.
Whether it is 1 year, 3-year or 5-year volatility, CSI 500 is bigger than CSI 300. This means that small partners who have the ability to accurately capture the band market will have higher annualized income.
Reason 4: The average market value of constituent stocks is far less than that of Shanghai and Shenzhen 300.
The market value of the largest component of the CSI 500 Index is 65.9 billion, and the market value of the largest component of the CSI 300 Index is10.6 trillion. The market value of the smallest constituent stock is 5.6 billion, and the market value of the smallest constituent stock in Shanghai and Shenzhen 300 is 654.38+03.6 billion; The average market value of CSI 500 is 65.438+068 billion, which is far less than that of CSI 300. When the "elephant" dances, there is really nothing to do with small-cap stocks. But when the wind changes, everyone knows that "the boat is small and easy to turn around."
Reason 5: The distribution of heavyweights in the two cities is more balanced.
The CSI 500 heavyweights account for 45.5% in Shanghai and 54.6% in Shenzhen. The heavyweights in Shanghai Stock Exchange accounted for 67.8%, while those in Shenzhen Stock Exchange accounted for only 32.2%. Therefore, the distribution of heavyweights in the CSI 500 Index is more balanced.
Reason six: the industry weight is more dispersed, avoiding the risk of a single industry.
Although at first glance, the industry distribution of the two indexes seems to be similar, there are great differences in the proportion and weight. For example, in the Shanghai and Shenzhen 300, the top three industries are financial real estate, industry and optional consumption, accounting for 39.2%, 14.2% and1/0.8% respectively; The top three industries in CSI 500 are industries, accounting for 22.4%, 18.6% and 14.5% respectively. It can be seen that the large-cap stocks of financial real estate account for a high proportion in the Shanghai and Shenzhen 300, while the industry proportion in the CSI 500 is more balanced.