Index Fund Product Research Series Report 207: A New Perspective on the Proportion of Classic Indexes in High School Words: Shanghai Composite Index: Analysis of the Investment Value of Shanghai Composite Index ETF (510760)
Investment tips for the current period:
Shanghai Composite Index ETF (fund code: 510760) was established on August 21, 2020, and the fund managers are Liang Xing and Wu Zhonghao. The Fund closely tracks the Shanghai Composite Index (index code: 00000 1. SH) and seeks to minimize tracking deviation and tracking error. On May 10, 2024, the rate will be lowered to 0.15% for fund management and 0.05% for custody.
The SSE Composite Index (index code: 00000 1. SH, index abbreviation: SSE Composite Index) reflects the overall performance of listed companies on the Shanghai Stock Exchange. It has a long history and wide influence. It is a classic broad based index weighted by total market value.
High school prefix proportion: the weight proportion of central state-owned enterprises in the Shanghai Composite Index reached 62.79%, and the weight proportion of central state-owned enterprises in the Shanghai Composite Index was higher than that of the CSI 300 wide base index in the same period; Since 2021, the cumulative earnings of the Shanghai Composite Index has led the CSI 300 Index by 20.7 percentage points. Under the background of the New National Nine Rules, the Shanghai Composite Index will benefit more significantly from the expectation of continuous growth in the performance of central enterprises, and is expected to continue to lead the CSI 300.
Weak market highlights resilience: from the perspective of annual yield, the Shanghai Composite Index has performed well in 2018, 2021, 2022 and 2023, with the yield leading the CSI 300 in that year, of which the excess yield (CSI 300) in 2021 reached 10%, highlighting its resilience under weak market.
The valuation is expected to rise, and the long-term allocation value is high: as of May 10, 2024, the Shanghai Composite Index's P/E ratio is 13.82 times, and the P/B ratio is 1.26 times, which is close to the valuation level of Shanghai Shenzhen 300 (PE-12.21, PB-1.26). In 2025 and 2026, the net profit attributable to the parent company of the Shanghai Composite Index will grow by 9.41% and 7.86% year on year, and the valuation level is expected to have some room for improvement.
In the past three years, the net value of funds has exceeded the benchmark by 18 percentage points: the Shanghai Composite Index ETF has adopted the sampling replication method. Since its listing on September 9, 2020, as of May 10, 2024, the unit net value has increased by 12.26%, while the Shanghai Composite Index has declined by 3.08% over the same period, and the cumulative excess return is 15.34%; In terms of market stages, since 2021, the ETF has declined in a volatile manner, rising 9.84% against the trend, and the excess return compared with the Shanghai Composite Index reached 18.17%.
Risk tip: The research and analysis of fund products and indexes in this report are based on historical public information, which may cause certain analysis deviation due to changes in sample stocks of the index; In addition, the historical performance and performance of fund managers do not represent the future; The future performance of the index is affected by multiple factors such as the macro environment, market volatility, style conversion, etc., and there is a certain volatility risk.
