Gem refers to the representative index of gem. The gem Index is an index that invests in 100 stocks with high liquidity and high market capitalization in the gem, and the constituent stocks cover pharmaceutical, electronics and other sectors. According to Wind, the annualized return of the gem since its inception is about 8.6 per cent, which is higher than that of CSI 300 (about 4.2 per cent) and CSI 500 (about 3.6 per cent). At the same time, the volatility of the gem index is about 31.3%, which is higher than Shanghai and Shenzhen 300 (about 23.0%) and China Securities 500 (about 26.8%).
Gem refers to the index companies with high overall growth and large R & D investment. Since 2012, the index deducts non-home net profit at an average year-on-year growth rate of about 22.6%, which is higher than that of gem (about 6.6%), CSC 500 (about 18.1%) and Shanghai and Shenzhen 300 (about 8.3%). Gem refers to high profitability. Since 2011, the average ROE (TTM) of the index is about 9.0%, which is higher than that of gem, CSI 500 and so on. As of February 21, 2020, the index had a price-to-earnings ratio (TTM) of about 56 times.
The profitability of gem is technology-driven, and the proportion of R & D expenditure (the ratio of total R & D expenditure to total operating profit) has exceeded 30% in the past three years.
The market value of northward capital and institutional capital holdings continues to grow. Over the past two years, northbound funds and active funds have accelerated their inflow into gem constituent stocks, of which the market value of northward funds accounted for about 2.94% of the total market value of the gem index at the end of 2019, an increase of about 1.8% compared with 2018. The market value of active fund holdings increased by about 115% in 2019 compared with the same period last year.
Yi Fangda gem ETF-- tracks the gem refers to the largest ETF. ETF (159915.SZ), an ETF of Yi Fangda Fund, was established in September 2011 and listed in December of the same year. It is the largest ETF in the tracking gem index. Based on the unit net value and share of 2020-02-21, the latest scale is about 19.4 billion yuan. The trading activity of the ETF is relatively high, with an average daily turnover of about 910 million yuan since 2019 (stock ETF from high to low), and the tracking error is at a low level.
Development trend: performance improvement in 2019, R & D capability may bring growth dividend. According to Wind, more than 60 per cent of gem index constituent stocks reported positive results in the 2019 annual report, while gem refers to an improvement in fundamental trends. Currently in the cycle of scientific and technological innovation, gem refers to the high level of overall R & D expenditure, which is expected to obtain the dividend brought by scientific and technological innovation.
Core hypothetical risk: index growth is lower than expected; fluctuations in the securities market affect product returns; this report does not serve as investment recommendations for products.