Shanghai and Shenzhen 300 have configuration value.

The CSI 300 Index spans the Shanghai and Shenzhen stock markets and has a good market representation. At present, the valuation of CSI 300 index is at an all-time low, the dividend yield has reached a historical high, and it has a high allocation value, which is suitable for investors who pursue value investment. In terms of capital flow, Shanghai and Shenzhen 300 constituent stocks are still the important allocation targets of Shanghai Stock Connect and Shenzhen Stock Connect. As of September 30, 2018, the top 10 major stocks of domestic ordinary stock and mixed (except partial debt) open-end funds accounted for 26% of the Shanghai and Shenzhen 300 stocks, a big rebound from 2015.

Unique advantages of ETF

ETF itself combines some of the characteristics of indices, stocks and funds, making it more convenient. Another advantage of ETF is that it can be applied to a variety of arbitrage strategies, such as ETF and primary and secondary market arbitrage, stock index futures and ETF arbitrage and so on. In addition, ETF also caters to investors' preference for low-rate products, and the size and number of ETF in China and the United States have maintained rapid growth in recent years.

Analysis on the Investment value of Huaxia Shanghai and Shenzhen 300ETF

As of October 31, 2018, Huaxia Shanghai and Shenzhen 300ETF had a net asset size of 23.178 billion, with an average daily turnover of 64.17 million in the past year, ranking second among similar Shanghai and Shenzhen 300ETF with good liquidity. The fund aims to closely track the target index, pursue tracking deviation and minimize tracking error. During the whole sample period, the tracking error is 0.7351%, the lowest by year is 0.1351%, the absolute value of daily average deviation is 0.0241%, and the lowest by year is 0.0066%. It has good control over tracking error and daily average deviation.

Risk hint: market environment change risk, model failure risk.