In just over three months, the "competition" of various institutions around the 100 index of the Science and Technology Innovation Board is dazzling. On August 7, 2023, the STAR Market 100 Index, which has a more balanced industry distribution and is biased towards small and mid-cap styles, was released, and a month later, on September 7, the first batch of 4 STAR 100 ETF products were announced. Two months later, the second batch of three STAR 100 ETF products, including ChinaAMC**, were established again.
Among the 7 products, Huaxia ** (588800) is particularly fierce. Although it is the second batch of banks to establish the Science and Technology Innovation 100 ETF, butThe total amount of funds raised by STAR 100 ETF China AMC is the largest among the two batches of 7 STAR 100 ETF products, nearly 3.9 billion. At the same time, from the perspective of the total number of effective subscriptions, Kechuang 100 ETF ChinaAMC (588800).It was headed by 43,996 householdsIt is also the "top stream" of similar products.
On November 16, the Science and Technology Innovation 100 ETF ChinaAMC (588800) continued to show market appeal after its listing, with a turnover of 121.7 billion yuan, once again ranking first in the same category.
Since then, the STAR 100 ETF ChinaAMC (588800) has continued to gain the favor of funds, and its scale has increased, attracting more than 1 billion yuan in several trading days. The data shows thatAs of November 29, the total share of STAR 100 ETF ChinaAMC (588800) reached 558.7 billion copies, ranking first among the 7 STAR 100 ETFs
It is worth mentioning that the share of Science and Technology Innovation 50 ETF (588000), another index product of ChinaAMC**, has exceeded 100 billion. So, why do all kinds of funds in the market flow to ChinaAMC's science and technology index products?
In addition to the STAR 100 ETF ChinaAMC (588800), the share of other STAR 100 ETFs has also increased to varying degrees, which makes the overall scale of the STAR 100 ETF continue to increase.
Behind it is undoubtedly the positive layout of the future market of the Science and Technology Innovation Board. Shenwan Hongyuan** pointed out that with the economic recovery and the gradual recovery of the semiconductor cycle, the profit inflection point of the Kechuang 100 Index is expected to come, and the single-quarter profit growth rate may bottom out in the fourth quarter of this year, and the profit growth rate of the whole year of 2024 is expected to reach more than 50%, and the current long-term cost performance of the Kechuang 100 Index is in the absolute high area of history.
In fact, the Science and Technology Innovation Board, which was born in 2019, has always been a sector that investors focus on with the blessing of scientific and technological innovation attributes.
Although the overall performance of the Science and Technology Innovation Board has been poor since 2022, market funds have increased their positions against the trend, taking ChinaAMC Science and Technology Innovation 50 ETF (588000) as an example, its share has increased by more than 50 billion shares in the first three quarters of 2023, especially in the third quarter of 2023, with a large increase of nearly 38 billion shares.
It should be pointed out that although they both belong to the Science and Technology Innovation Board, the Science and Technology Innovation 50 and the Science and Technology Innovation 100 are obviously different, and the two are highly complementary.
From the perspective of market capitalization distribution, the STAR 100 Index as a whole is biased towards the small and mid-cap style. Wind data shows that as of September 30, 2023, the total market value of all constituent stocks of the STAR 100 Index is less than 40 billion yuan, with an average of 14.7 billion yuan, and the weight of the total market value below 20 billion yuan accounts for nearly 80%, and the market value structure distribution is similar to that of the CSI 1000In contrast, the STAR Market 50 Index is generally biased towards the large- and mid-cap style, with the total market capitalization of its constituent stocks averaging RMB46.3 billion.
At the same time, the industry distribution of the constituent stocks of the Science and Technology Innovation 100 is also more even, according to the information of China Securities Index Company, more than half of the constituent stocks of the Science and Technology Innovation 100 Index are distributed in biomedicine, high-end equipment, new materials and other industries (total weight 54.).1%), and the industry distribution is well complementary to the Science and Technology Innovation 50 Index.
In terms of innovation ability and performance flexibility, Kechuang 100 companies also show the characteristics of "high R&D investment and high revenue growth". According to the information of China Securities Index Company, the total R&D investment of the sample companies of the Science and Technology Innovation 100 Index in 2022 will be 28.9 billion yuan, accounting for an average of 19% of operating income, and the average annual compound growth rate of operating income of the sample companies in the past three years is as high as 389%, R&D intensity and revenue growth are higher than the average market level of the Science and Technology Innovation Board.
High growth has always been one of the preferred investment directions of investors, and if high growth is superimposed with the characteristics of small and medium-cap caps, it often brings more excess returns. These characteristics make the STAR 100 Index even more attractive for investment.
In fact, ChinaAMC has established a leading position in science and technology index products early. In recent years, the "popularity" of the Science and Technology Innovation Board has continued to rise in the context of China's complex internal and external environment and independent innovation, and many companies, including Huaxia**, have stood on the same starting line and laid out related products, among which the most prominent performance is undoubtedly Huaxia Science and Technology Innovation 50 ETF (588000).
As one of the first batch of STAR 50 ETFs to be established, ChinaAMC STAR 50 ETF was established on September 28, 2020, with a share of 51 at the time of its establishment2.3 billion shares, and the share has continued to rise since then, especially in the first three quarters of this year, the net inflow of ChinaAMC Science and Technology Innovation 50 ETF exceeded 50 billion shares.
As of September 30, the share of ChinaAMC Science and Technology Innovation 50 ETF exceeded 100 billion, reaching 1016400 million copies, becoming the first ETF** in the domestic market with a share of more than 100 billion, with a scale of 9467.3 billion yuan, becoming the second largest ETF product after a CSI 300 ETF.
Another detail worth paying attention to is that the STAR Market may have a high investment threshold (such as asset size, trading life limit and ** risk, etc.).ChinaAMC STAR 50 ETF has a large number of individual investors participating in it
According to the semi-annual report of ChinaAMC SSE 50 ETF, as of June 30 this year, individual investors accounted for 6399%, and 25% held by institutional investors. In terms of the total number of holders, there are about 77 in total90,000 households. In contrast, the largest ETF product, a CSI 300 ETF, is held by institutions accounting for more than 62%. In addition to its leading scale, ChinaAMC STAR 50 ETF's past alpha performance has also attracted many investors. According to wind data, as of September 30, 2023, among all products with the same standard in the whole market, ChinaAMC Science and Technology Innovation 50 ETF has been in the leading position in consecutive excess returns in 2021, 2022, and the first half of 2023.
In recent years, with the large growth of the index**, ordinary investors have a deeper understanding of index products. Among them, the size of the ETF is an important reference criterion for "base selection", and the ETF has sufficient liquidity, which can often replicate the index more accurately, and also avoid the risk of being liquidated.
To sum it up in one sentence,In the field of ETF investment, "buy index, buy head" is becoming the consensus of more and more investors
As a leading company in the index field, as early as 2004, ChinaAMC launched the first ETF product in China - ChinaAMC SSE 50 ETF, promoting the development of China's public offering ** industry into the ETF era, and in the past 18 years, ChinaAMC has created a precedent in the industry for many times, and has also become the "first batch" in the industry for many times.
As of the end of September 2023, the management scale of ChinaAMC**'s passive equity products exceeded 370 billion yuan, making it the first domestic ** company with an equity ETF scale exceeding 200 billion yuanIt has ranked first for 17 consecutive years, and is the only company in China that has been rated as a "Passive Investment Golden Bull" for 7 consecutive years(China ** Newspaper Review). WhileIn recent years, the leapfrog growth of the index has also made the brand advantage of China AMC in index investment from the industry to ordinary investors
The reason is easy to understand, compared with equity investment, the leading advantage of index investment is easier to accumulate and sustain.
Generally speaking, the ups and downs of equity investment are easily affected by changes in market style and managers, even if the head company has abundant investment and research resources, the performance of its subjective equity products will fluctuate, and even lag behind.
And index investment closely follows the trend of the index. Therefore, as an index investment with tool attributes, investors pay more attention to the scale and liquidity of the product, and the accumulation of experience in management and operation, so it often has a siphon effect, and the advantages of leading companies are continuously strengthened with the growth of scale.
Obviously, the advantages accumulated by China AMC in index investment are becoming explicit step by step.
Disclaimer: The above content is only a personal investment opinion and does not constitute any operational advice or commitment. There are risks. Invest with caution.