[Research Report Summary]
The Huatai Berry China Securities 500 ETF Fund uses the China Securities 500 Index as the target index, and the fund's main strategy is to replicate the target index. The sample of the China Securities 500 Index was selected from the Shanghai and Shenzhen stock markets. Its constituent stocks include 500 small-cap stocks with good liquidity and strong representation in the A-share market other than the constituent stocks of the Shanghai and Shenzhen 300 Index. It comprehensively reflects the overall situation of small capitalization companies in the Shanghai and Shenzhen securities market, and is a representative index of the small to medium capitalization style. The index's earnings are highly volatile, and the current valuation is below the historical average. The constituent stocks of the China Securities 500 Index cover 28 related industries in Shenwan's Tier 1 industry classification, and the industry distribution is relatively scattered.
Among the passive investment funds that track the China Securities 500 IndexHuatai Berry China Securities 500 ETFThe fund's performance was relatively high, and the tracking error was small at the same time. However, the fund's market trading activity is not high. The fund manager is experienced and has a strong team. In the later stages, it is necessary to pay attention to the impact of risk factors such as domestic and foreign market fluctuations on the fund's performance.
n The full name of the underlying index of the China Securities 500 ETF fund is tracked by the Huatai Berry China Securities 500 ETF Fund is the “China Securities 500 Index”. Its sample was selected from the Shanghai and Shenzhen stock markets. Its constituent stocks include 500 small-cap stocks with good liquidity and strong representation in the A-share market other than the constituent stocks of the Shanghai and Shenzhen 300 Index, which comprehensively reflects the overall situation of small capitalization companies in the Shanghai and Shenzhen securities markets. Judging from the market capitalization distribution of constituent stocks, there are currently 130 individual stocks with a total market capitalization of 10 billion yuan or less; there are 386 individual stocks with a total market capitalization of 20 billion yuan or less; and there are only 5 individual stocks with a total market capitalization of 40 billion yuan or more. Overall, the medium to medium trading style of the China Securities 500 Index is relatively obvious.
n Judging from Wande's statistical results, the earnings of the China Securities 500 Index are highly volatile. The index's annualized volatility performance at various statistical stages was greater than that of general market indices such as the Shanghai and Shenzhen 300 during the same period. Long-term earnings performance has a certain competitive advantage. Among them, the index's annualized yield performance in the past ten years was significantly stronger than that of the Shanghai and Shenzhen 300 during the same period. However, medium-term earnings did not show a clear advantage.
n Judging from the industry distribution, the constituent stocks of the China Securities 500 Index involve 28 related industries in Shenwan's Level 1 Industry Classification (same below), and the industry distribution is relatively scattered. Among them, pharmaceutics accounts for nearly 10%, and the total share of the top three electronics and computer industries in this industry is 25.56%. The sum of the top ten industries accounted for 60.44%.
n Judging from Wande's statistics, since this year, the average daily transaction amount and daily transaction turnover rate of the Huatai Berry China Securities 500 ETF Fund have basically been below the middle level of these funds. As an ETF product that can be traded on the market, the high average daily trading volume indicates that the product's market trading is relatively active, and the market attention is high, which is conducive to the operation of related investment strategies. Statistics from Wande show that since this year, Huatai Berry's China Securities 500 ETF fund has had small tracking errors and a high information ratio, indicating that the fund's better tracking target index has also received clear excess income.
n When there is a certain deviation between the ETF market's trading price and its net worth. Investors can then use the subscription and redemption mechanism to carry out arbitrage transactions between primary and secondary markets. Simply put, after fully considering the cost factor of the transaction, when the ETF's secondary market price is higher than the reference net value (IOPV) of its fund share (IOPV), investors can buy ETF shares at a relatively low price and sell them in the secondary market at a higher price to obtain arbitrage income; when the ETF secondary market price falls below a certain range of IOPV, investors can operate in reverse.
n Risk warning: The impact of risk factors such as domestic and foreign market fluctuations on the fund's performance.