In February 2024, the A** market showed a trend of recovery, with the Shanghai Composite Index once standing above 3,000 points, and the ChiNext Index hitting a record high. In such a market environment, broad-based ETFs have become a popular choice for funds, attracting large net inflows, showing investors' confidence and optimism in the market.
According to Wind Information data, in February, the total net inflow of broad-based ETFs reached 1,9034.1 billion yuan, exceeding 952 in the fourth quarter of 20233.1 billion yuan, nearly twice the latter. Specifically, the performance of many broad-based ETFs in February also exceeded that of "a full quarter". Among them, the total net inflows of CSI 500 ETF, ChinaAMC CSI 300 ETF, E Fund CSI 300 ETF, Harvest CSI 300 ETF and Huatai Pineapple CSI 300 ETF reached 12497.5 billion yuan.
So why are broad-based ETFs so favored? On the one hand, broad-based ETFs have the advantages of diversified holdings, moderate volatility and strong resistance to declines. In the early stage of the market, strong industries or themes are not yet clear, broad-based ETFs can cover multiple industries at a high level, and to a certain extent, they can avoid short-selling and reduce investment risks, so broad-based ETFs are high-quality tools for quickly allocating equity assets at the bottom of the market. On the other hand, broad-based ETFs are also able to share in the market's best dividends. In February, the STAR 50, STAR 100, CSI 300, SSE 50 and SSE 180 indices were respectively **1%。Broad-based ETFs that track these indices have correspondingly achieved higher yields.
In addition to broad-based ETFs, dividend ETFs have also performed well. Dividend ETFs mainly track indices with dividend yields as the screening criteria, such as SSE dividends, CSI dividends, etc. The constituent stocks of such indices usually have characteristics such as lower valuations, higher cash dividends, and more stable performance, which are suitable for long-term holding. Since the beginning of this year, the SSE Dividend Index has been **114%, CSI Dividend Index**89%。After taking into account the dividend return, the SSE Dividend and CSI Dividend All-Income Indices have risen in the past three years. 3%, with an annualized rate of return of over %.
In short, both broad-based ETFs and dividend ETFs are rational choices for investors in the current market environment. Broad-based ETFs can help investors seize the best opportunities in the market, and dividend ETFs can help investors achieve long-term stable returns. Of course, investors still need to pay attention to risks when participating in the market, and do a good job in asset allocation and risk management. Net inflows into broad-based ETFs surged in February