, ETF connection is the real brother of ETF, ETC is just a slap in the face.
In the last issue, we introduced to you the people who are suitable for investing in ETFs, including: patients with difficulty in stock selection, busy people, sector rotation, limited funds, and risk diversification.
In this issue, I mainly answer your various questions about ETFs.
1. How to check what index each ETF tracks and what are the constituent stocks of the index?
When we buy ETFs, which companies are we optimistic about? This is the most frequently asked question. Let’s take the technology ETF (515000) as an example to tell you how to find the constituent stocks of the ETF.
First, enter the code 515000 in Tiantian Fund , click on the overview, and you can see the tracked index:
Everyday Fund - Search - Overview - Overview
There are three institutions that generally publish indices: China Securities Index Company and Shanghai Stock Exchange Index Publishing Agency , Shenzhen Securities Information Co., Ltd., we can tell from the name that the index tracked by the technology ETF is released by China Securities Corporation. After
we Baidu : CSI Index Company, or www.csindex.com.cn, enter the official website, search in the upper right corner of the official website: CSI Technology Leading Index, the following results appear:
CSI Index Company - search results
Click on this row of results to enter. It is a brave new world. It not only has the constituent stocks of the index, historical returns, but also the index compilation plan. You can even see the weights of the top ten stocks. It is almost omnipotent. !
Taking the technology ETF as an example, we will give you some popular science about its top ten stocks:
The top ten stocks of the technology ETF
You can also check the situation of other ETFs using the same method, So easy!
As for these stocks What exactly does it do? I think everyone has no big problem with consumer, bank, and brokerage ETFs, but technology, medicine, and medical care are relatively unfamiliar, so if you need to analyze which ETF's heavy holdings you can send me a private message.
2, Internet celebrity brothers ETF and ETF connection
This is the second most asked question. What is the relationship between the Internet celebrity brothers and what are their secrets? These brothers often make everyone blind and confused. Today we will completely explain Thoroughly sort out the relationship between the two.
Take the leading technology ETF (515000) as an example. It has two brothers, namely: leading technology ETF link A (007873) and leading technology ETF link C (007874). What is the difference between the three? It mainly depends on the time of establishment, investment targets and expenses.
is first established in time.
Technology Leading ETF (515000) was established on 2019-7-22,
two brothers joint funds 007873 and 007874 were established on 2019-8-30, one month late.
So many friends ask why the price of technology ETF is hovering around 1.4, while Link is around 1.25. That is because July-August 2019 was the month when technology started to rise sharply, and Link was not born yet. But fortunately, the rise in technology is not a one-month or two-month trend, but a cyclical trend lasting about two years. Referring to the 2013-2015 stock market dividends brought by 4G, the missed month of ETF connection is not a big deal.
Next is the investment target.
Each ETF tracks an index or index return rate. For example, the Technology Leading ETF (515000) completely tracks: CSI Technology Leading Index return rate, code 931087. Full tracking means that the position can reach 100%. For example, on March 13, the CSI Technology Leading Index fell by 0.49%, and the net value of the technology ETF fell by 0.48%, which is very close.
The two good brothers’ feeder funds invest mostly in technology ETFs, but most of them are incomplete. Therefore, the change in the net value of the feeder fund will not be completely equivalent to the change in the net value of the ETF. Feeder fund positions are generally higher than 90% and lower than 95%, and some cash will be reserved to deal with redemptions. For example, on March 13, the net value of the technology ETF fell by 0.48%, and most of the feeder fund A invested in it fell by 0.43%. There will be Some differences.
Because the feeder fund is not full, it will reserve some cash to deal with redemptions. Accordingly, it has a stronger ability to withstand declines in the current volatile market and is suitable for bank customers who pursue steady investment.
Finally, there is the cost aspect.
Technology Leading ETF (515000) is traded in the stock account, and the fee is the transaction commission when buying and selling, and is charged in both directions.
For example, if your account commission is RMB 20,000, then buying and selling ETFs will each charge RMB 10,000. The advantage over stocks is that there is no stamp tax, but some brokerages have a limit of at least RMB 5 per transaction. For details, please ask the brokerage where you opened the account. If the amount is small, the fee can be expensive. (For example, if you purchase 1,000 yuan, the handling fee is 5 yuan, which is equivalent to five thousandths of the purchase fee. When you redeem it, you will be charged another 5 yuan, which adds up to 1%)
Big Brother (Federated Fund A: 007873) can be purchased at the bank, When buying Tiantian Fund, etc., the purchase fee is the subscription fee of the ordinary fund, and there is no redemption fee for holding it for more than 6 months. This is better than buying technology ETFs on the exchange, because no matter how long you hold it on the exchange, you can sell it Will be charged again.
Little Brother (Feed Fund C: 007874) has no subscription fee when purchasing, but there is an annual sales service fee of 0.4% during the holding period, and there is no redemption fee for holding for more than 7 days.
For example, if you buy and redeem for 1 month, the fee is only 0.4%/12=0.03%.
Generally speaking, regarding whether to buy ETF or ETF connection, bank customers who are usually busy at work, have no time to read the market, and pursue stability still recommend ETF connection 007873/007874.
3, the relationship between ETF net value and buying and selling price
A careful friend raised this question.
For example, the closing price of the technology ETF on March 13 was 1.438, while the Tiantian Fund showed a net value of 1.4373, resulting in a 0.5% premium in the ETF price relative to its net value. (1.438-1.4373)/1.4373. Why does
have two prices? The net value of
ETF is based on the index tracked. For example, on March 13, the CSI Technology Leading Index fell by 0.49%, then the net value of the ETF was 0.48% lower, which is very similar. The price of
ETF is determined based on investors' transactions in the stock market. The more people buy, the more it will rise, and the more people sell, the more it will fall.
If a thing has two prices, there must be arbitrage:
When the price of the ETF on the market is much higher than the net value, you can buy the constituent stocks of the CSI Technology Leading Index, subscribe for the ETF (buy low), and sell later (sell high) ).
When the price of the ETF on the market is far lower than the net value, you can buy the ETF on the market (buy low) and then redeem it (sell high).
Because there is arbitrage, the price and net worth will not differ too far.
4, recommend several ETFs
recommend ETFs
If you invest in the stock market entirely with ETFs and their feeder funds, it is recommended to configure the core + satellite strategy. The core of
refers to the A-share broad-based index, which is the first part of our table. It is recommended that 50% of the funds be allocated to a broad-based index, such as 300ETF.
satellite refers to the industry index, which is the second part of our table. It is recommended that you allocate 40% of your funds to satellite allocation. Specifically, which sector to choose, you can invest in consumer, brokerage, and technology sectors at a ratio of 5:3:2.
The remaining 10% is allocated to overseas assets. Considering that Hong Kong stock ETFs are currently at an absolute low value, the last part of our table recommends allocations. These Hong Kong stock ETFs can be traded on the same day and implement T+0 trading.
ETF is a rising star in the investment world. We and everyone have carefully gone through every detail about him and his brothers.
Recently, many friends have asked whether they can buy the bottom.
I suggest you make fixed investments in ETFs or linked funds. You can increase the amount when there is a sharp decline, but it is not recommended to take a full position. If you have experienced several rounds of market ups and downs, you will realize that fixed investments in funds are the best way for ordinary people to succeed in investing. tool, bar none.
The last sentence is the same:
Every ETF has the potential to go to heaven!
Our content in the next issue will mainly focus on fund fixed investment, including the ultimate reason why fixed investment makes money, what kind of funds are recommended for fixed investment, what frequency, how much amount, and the method of handling fund losses that everyone is most concerned about. If you have any other questions about fund fixed investment, you can send me a private message.
See you next time.
