According to the announcement, JPMorgan CSI A50 ETF (**560350) was officially established on March 5 and will be listed on March 12. Wind data shows that JPMorgan CSI A50 ETF raised 2 billion yuan, with a placement ratio of 878%, with 15,731 valid subscribers, ranking first among the ETFs established this year.
On February 19, the first trading day of the Year of the Dragon, 10 CSI A50 ETFs were officially launched, which became a hot spot in the market at the beginning of the year. In just 8 trading days, the JPMorgan CSI A50 ETF ended its fundraising ahead of schedule.
From the perspective of fundraising speed, J.P. Morgan Asset Management has obvious advantages in this issuance, telling a good story of foreign public offering layout in China. As the only foreign public offering to participate in the first batch of issuance, the company has joined hands with global executives since the approval of the product to collectively speak out under the adjustment of A-shares, strengthen the strategic determination of "invest in China, go long in China", and jointly promote China's "New Beautiful 50" to the world.
Unique dividend mechanism to guide long-term investment
In terms of product design, J.P. Morgan CSI A50 ETF has specially added a mandatory quarterly dividend clause, which has won market attention and investor recognition while advocating a long-term investment philosophy, and is known as the "A50 that will pay dividends".
The J.P. Morgan CSI A50 ETF** contract stipulates that when the ETF's excess return relative to the underlying index on the last trading day of each quarter is positive, it will be compulsorily distributed, and the income distribution ratio will not be less than 60% of the excess return. (The specific content is subject to the ** contract). For investors, mandatory dividends mean that as long as the conditions agreed in the contract are met, cash dividends will be paid quarterly, and investors can have a predictable cash flow.
With the dividend mechanism, investors can "grasp both ETF holdings and cash dividends". Taking JPMorgan CSI A50 ETF as an example, on the one hand, investors can enjoy the dividends of China's new economic growth by holding JPMorgan CSI A50 ETF for a long time, and strive for the return of net value growth; On the other hand, through the ETF regular dividend mechanism, you can have the opportunity to get a part of the cash pocket for free use every quarter, which is expected to improve the ETF holding experience.
Special note: The ** dividend of JPMorgan CSI A50 ETF does not necessarily come from **profit, and ** dividend does not represent a positive return on the total investment.
It is a good time to go long China and deploy core assets
The market has undergone a period of adjustment, and despite the recent **, the valuation of A-share "core assets" is still in the historical bottom area, with a high margin of safety. Wind data shows that as of February 29, 2024, the current price-to-earnings ratio of the Wind Core Asset Index is only 1124 times, which is in the lower area in the past decade.
From the current point of view, based on the valuation attractiveness of the Chinese market, it may be a good time to go long on China and deploy core assets. J.P. Morgan CSI A50 ETF Manager Han Xiuyi saidIn the future, more funds are expected to flow into the market through broad-based ETFs, and the CSI A50 Index is expected to become the "new business card" of A-shares, which will enhance the pricing power of A-share core assets while becoming another important target for domestic and foreign funds to allocate A-share core assets.
From a fundamental point of view, as the impact of negative factors gradually resolves, the core assets of A-shares are expected to re-accelerate** and lead other broad-based indices** in the future. According to Wind Consensus**, as of March 5, 2024, in 2024 and 2025 without the impact of low base, the average return on equity (ROE) of the CSI A50 Index is significantly higher than that of the CSI 300 and SSE 50 Index.
From the perspective of asset allocation and medium and long-term investment, in the face of uncertain geopolitical conflicts and the Fed's expectation of interest rate cuts, high-quality core assets may also be more able to withstand the test of time and cycle, so the CSI A50 Index deserves investors' continued attention as a reserve asset.
J.P. Morgan CSI A50 ETF has added a quarterly mandatory dividend mechanism, and the excess return relative to the underlying index on the last trading day of each quarter is positive, that is, dividends. (The specific content is subject to the ** contract). Special note: The ** dividend of JPMorgan CSI A50 ETF does not necessarily come from **profit, and ** dividend does not represent a positive return on the total investment.