Analysis of the investment value of the Shanghai Composite Index ETF: the comprehensive evaluation of the Shanghai Composite Index surpasses the CSI 300 under the current style
The value style has become stronger. Since 2023, the market style has undergone positive changes, and the overall value style has outperformed the growth style significantly. From 2023/1/3 to 2024/5/17, the Shanghai Composite Index rose by 2.10%, while other major broad based indexes fell over the same period.
The proportion of "middle" in the Shanghai Composite Index is high, and the dividend returns are generous
One of the characteristics of the Shanghai Composite Index is the high proportion of central enterprises. As of the end of April this year, among the major broad based indexes, the Shanghai Composite Index has the highest proportion of central enterprises, and is the only index in which the proportion of central enterprises exceeds 40%. In 2023, the weighted dividend yield of the Shanghai Composite Index will reach 2.64%, second only to the Shanghai 50 Index and significantly higher than other major broad based indexes such as the Shanghai Shenzhen 300 Index.
The Shanghai Composite Index has obvious advantages in undervaluation and smaller retracement range
As of May 17, 2024, the weighted P/E ratio of the Shanghai Composite Index is 13.47 times, which is only slightly higher than the Shanghai 50 Index and lower than other major broad based indexes such as the Shanghai Shenzhen 300 Index. From 2023 to now, the Shanghai Composite Index has the lowest maximum pullback among the major broad base indexes, which is - 20.41%, with significantly better risk resistance.
Shanghai Composite Index ranks first in comprehensive evaluation, surpassing Shanghai and Shenzhen by 300
Based on the characteristics of yield, central enterprise weight, dividend yield, valuation and maximum withdrawal since 2023, we give a comprehensive evaluation score to the main broad-based indexes. The score of the Shanghai Composite Index ranks first, surpassing the CSI 300 Index, and the investment value is the highest under the current market style of dominant value.
The return of the Shanghai Composite Index ETF exceeded the benchmark and further exceeded that of the Shanghai and Shenzhen 300 in the past three years (2021/5/1 to 2024/5/17). The cumulative increase of the Shanghai Composite Index ETF was 9.58%, and the excess return on the tracking subject was 18.08%. Over the same period, Shanghai and Shenzhen 300 fell by 28.21%. The excess return of Shanghai Composite Index ETF on Shanghai and Shenzhen 300 reached 37.79%, which was very significant.
Shanghai Composite Index ETF reduces fees and increases profits
From May 10, 2024, the annual management rate of Shanghai Composite Index ETF and its feeder funds will be lowered from 0.50% to 0.15%, and the annual custody rate will be lowered from 0.10% to 0.05%, which will increase investors' income. The Shanghai Composite Index ETF has become one of the investment tools with the lowest rate in the whole market, and it is also an index fund tracking the Shanghai Composite Index with the lowest rate at present.
Risk warning
The research and analysis of fund products and indexes in this report are based on historical public information, which may be subject to changes in the sample stocks of the index; The future performance of the index is affected by multiple factors such as the macro environment and market fluctuations, and there is a certain volatility risk.
