The largest CSI 2000 index ETF in the whole market is heavily listed today

On October 18, the China Securities 2000 Index ETF (transaction code: 563200) under Wells Fargo Fund was heavily listed, and investors welcomed a more flexible and high growth micro stock investment tool. According to the data on the official website of the exchange, as of October 10, the latest scale of the CSI 2000 index ETF was 823 million yuan, the largest ETF among the ETF products tracking the CSI 2000 index in the whole market.

With the gradual acceleration of China's transformation from "high-speed development" to "high-quality development", industrial reform and technological innovation have become new growth points to promote economic development. Against the backdrop of intensified international competition, small and micro enterprises that benefit from favorable policies and focus on emerging industries are expected to usher in broad development opportunities. According to the data of the Ministry of Industry and Information Technology, as of the end of June this year, 1446 specialized, special and new SMEs had been listed in A-share, accounting for 27.7% of the A-share listed enterprises, of which 102 specialized, special and new SMEs had been listed in the first half of this year, accounting for 59% of the A-share listed enterprises.

By sorting out the constituent stocks of the CSI 2000 Index, we found that the proportion of specialized and new enterprises reached 22.3%, significantly higher than other major broad-based indexes, which also made the CSI 2000 Index more explosive and flexible. In the short term, benefiting from the rise of AI and AI, this year's upstream semiconductor chips and communication equipment; The midstream algorithm, software and downstream film and television media have performed well, and the CSI 2000 index covering the above industries has also performed well. According to Wind data, as of October 10, the CSI 2000 index has risen 3.28% against the trend since the beginning of the year, while the mainstream indexes such as SSE 50, CSI 300, CSI 800, and CSI 1000 have negative returns over the same period.

The same is true for a long time. In the process of long period passing through the big and small disks, the performance of the CSI 2000 index is still outstanding. Wind data shows that during the period from the base date of December 31, 2013 to October 10, 2023, the annualized return rate of the CSI 2000 index is 9.39%, and the annualized return rate of the CSI 300, CSI 500, and CSI 1000 index in the same period is 5.00%, 4.18%, and 3.18% respectively. Further comparing the excess returns of various mainstream indexes, the CSI 2000 index generally has a better performance. In the past decade, the excess returns of the CSI 2000 index compared with the Shanghai Stock Exchange Index, the Shenzhen Stock Exchange Index, and the Shanghai Shenzhen 300 index reached 85%, 105%, and 72% respectively, and compared with the CSI 1000 index in the small cap index, the excess returns also reached 97%.

On the whole, with the continuous release of positive factors of microenterprise style, the attention and recognition of market funds on microenterprise style are also rising. The data has also been well confirmed. GF Securities data shows that the proportion of small cap stocks allocated by public funds has increased year by year in recent years, from 9.62% in 2019 to 16.11% in 2022.

After long-term adjustment, the current A-share valuation has been at a relatively low level. Wind data shows that, as of October 10, the P/E ratio of the Wande All A Index was 17.18 times PE, at the historical quantile of 25%, and the P/B ratio was 1.54 times PB, at the historical quantile of 3%.

Looking forward to the future, in the context of maintaining ample liquidity, recovering corporate profits, and improving investor confidence, the style of small and micro businesses is expected to continue to be strong. As the largest CSI 2000 index ETF in the market, the configuration value of ETF is prominent. Investors can also use ETF, an efficient and convenient investment tool, to adopt multiple strategies such as subscription and holding strategies, trading strategies, and arbitrage strategies, Capture investment opportunities for high growth of small and micro enterprises.

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