In the past two weeks, investors have witnessed "big changes unseen in a century." They have witnessed four circuit breakers in the U.S. stock market in two weeks, and there are endless jokes. The most famous one is the self-ridicule of witnessing the 89-year-old Buffett which has never been seen before. Fuse blown 4 times.
However, Buffett also has a famous saying that you may be more familiar with, which is "Be greedy when others are afraid." Are there any opportunities hidden in the panic response of overseas markets? In particular, QD funds that mainly invest in overseas Chinese concept stocks have also fallen sharply as a result, including Tencent, Alibaba, Bilibili, TALFuture, Meituan, Pinduoduo, Netease, iQiyi, etc. There are so many quality companies you can count.
For those of us who are unable to directly invest in overseas markets such as Europe and the United States, QDII fund and related ETF are a convenient tool. Smart Investor statistics found that the net inflow of cross-border ETF funds in March has exceeded 5 billion.
Smart Investor statistics show that there are currently 293 QDII funds on the market. Among them, the QD funds tracking S&P 500 and Nasdaq 100 have fallen in line with the index this year, at 25% and 18% respectively; Japanese QD The fund also fell by about 23%, and the India and German QD funds fell even more dramatically, exceeding 26% and 30%.
There are 19 QDII funds tracking 7 Hong Kong stock indexes. The decline this year has been within 15%, which is slightly better than the European and American markets. But they far exceeded the 11% decline of A shares this year.
Although the current timing of bargain hunting and is still unclear, it does not prevent us from understanding it first.
The QDII fund has reopened for subscriptions
but is limited to large-amount subscriptions
Before we start to understand, investors should also be reminded of the recent subscription situation of QDII funds. Due to the consumption of foreign exchange quotas of fund companies, many fund companies have previously announced the suspension of QDII fund transactions.
For example, on March 11, many QDII funds under E Fund issued announcements to suspend subscriptions and fixed investments.
However, the latest announcement on March 19 shows that E Fund S&P 500 Index , E Fund Gold Theme QDII Fund, E Fund Crude Oil, E Fund Hong Kong Hang Seng Comprehensive Small Cap Index, etc. have just resumed subscriptions, but have suspended large amounts. Subscription business (limited subscription amount to RMB 500).
Cathay Fund has earlier suspended subscriptions for its Nasdaq 100QD fund. Guangfa Fund has also previously issued an announcement that Guangfa Nasdaq 100 will limit subscription and conversion transactions of more than 2,000 yuan from March 11.
There is also the Dacheng Nasdaq 100 Index under Dacheng Fund. Starting from March 12, 2020, the subscription amount will be increased, but it cannot exceed 50,000.
There are currently 293 QDII funds on the market, but because QDII funds that track major overseas stock indexes are more pure, smart investors will focus on overseas index QDII funds, and bring along some actively managed QDII.
There are 74 index-type QDII funds in the market (A and C categories are combined, the same below). The investment areas are distributed in US stocks , Hong Kong stocks, Japan, Germany, India, Vietnam and BRIC countries and other emerging market regions .
Next, let’s start from each investment area and see how the index performance of different markets differs.
US stock QDII: Focus on Nasdaq & S&P 500
There are 34 index QDII funds that purely invest in the US stock market, each tracking the index of 15 US stocks.
Most QDIIs that cover U.S. stocks mainly track the Nasdaq 100 Index and S&P 500-related indexes, and these indexes have all experienced large declines.
1, 7 Nasdaq 100 funds
Compared with the S&P 500 index, the industry distribution is relatively balanced. The Nasdaq 100 covers the most information technology industries. In addition, there are also some optional consumer and health care industries.
The index has increased by nearly 49% in the past three years, while has fallen by 17.84% this year. Especially since March, due to the impact of the epidemic and other aspects, the decline in the past week has exceeded 6%.
Source: Wind; as of March 18, 2020
There are currently 7 funds tracking the Nasdaq 100 Index, which is currently the index tracked by the most U.S. stock QDII funds. The largest among them is the GF Nasdaq 100. Currently, The scale is 2.245 billion.
In addition, there are 2 ETFs.
Among them, the Cathay Nasdaq ETF was established in April 2013, with a current scale of 835 million and a turnover of 1.327 billion in the past week. It still has good liquidity.
Judging from the top ten stocks, including Microsoft , Apple, Amazon, Alphabet, Facebook, Intel , Cisco, etc., there is also a consumer stock-Pepsi Cola.
In the past week, the fund’s premium rate has reached a maximum of more than 14%, demonstrating the enthusiasm for bargain-hunting funds.
The other one is the GF Nasdaq ETF, but its current scale is small, only 31 million, but the latest net inflow is 158 million shares. Although it is falling, it is still welcomed by funds.
2, S&P 500QD Fund
The S&P 500 Index mainly covers industries such as information technology, health care, consumer discretionary and finance. The index has fallen 25.77% this year.
Source: Wind; as of March 18, 2020
Boshi S&P 500 ETF, established in December 2013, has a current scale of 1.478 billion. In the face of decline, the trading volume of this ETF has not decreased. In the past week, There is still nearly 750 million worth of sales, which still has good liquidity.
Judging from the 2019 Four Seasons Report, the top ten stocks are mainly technology, financial and consumer companies, including Microsoft, Apple, Google and Berkshire, JP Morgan Chase , Johnson & Johnson, Procter & Gamble Waiting for the company.
E Fund also has an S&P 500 fund named LOF, which can be traded on the market.
In addition, there are Dacheng S&P 500 equal-weighted funds, Changxin S&P 100 equal-weighted funds, and QD funds tracking the S&P series of subdivided indexes, such as S&P Medical, Biotechnology and other QD funds on the market.
The German DAX index has fallen by more than 30% during the year
There are 30 constituents of the index , which mainly cover the information technology, materials, finance and optional consumer sectors. has fallen by more than 30% this year, and even more so in the past two weeks. fell more than 20%.
There are 2 funds tracking the index - Huaan Germany 30 (DAX) ETF and its feeder fund , Huaan Germany 30 (DAX) ETF was established in August 2014, with a current scale of 618 million, and the latest net inflow share is 619 million copies, with a discount rate of 8.33%, indicating that there are still investors using ETFs to hunt for the bottom.
The top ten stocks of Huaan Germany 30 (DAX) ETF are concentrated in manufacturing, financial and large consumer companies, including SAP (the world's third largest independent software vendor), Allianz Insurance , Siemens, Germany Telecommunications, Bayer AG, Daimler AG (commercial vehicle manufacturing), etc.
Source: Wind; as of March 18, 2020
Japan QD Fund
Source: Wind; as of March 18, 2020
4 The indexes tracked by QDII include the Nikkei 225 and Topix. Since the beginning of this year, these two indexes have also experienced significant adjustments, with both declines exceeding 26%. The declines since March have been 20.89% and 15.89% respectively.
1. 3 QD funds tracking Nikkei 225 index
Source: Wind; as of March 18, 2020
There are currently three DIIs tracking the Nikkei 225 - E Fund, Nikko Asset Management Nikkei 225ETF, Huaxia Nomura Nikkei 225ETF and Huaan Mitsubishi UFJ Nikkei 225ETF. were all established in June 2019. , all less than one year.
The largest one currently is ChinaAMC Nomura Nikkei 225 ETF, with a latest scale of 248 million, and the latest single-day inflow exceeding 300 million shares; the latest scale of E Fund Nikko Asset Management Nikkei 225 ETF is 133 million, and the latest single-day net inflow share exceeds 300 million. 100 million copies, but still received favor from funds. The latest size of Huaan Mitsubishi UFJ Nikkei 225 ETF is less than 100 million. Compared with the other two, its liquidity is much worse.
2. Southern Topix Index ETF
Compared with the Nikkei 225, the Topix Index has much more constituent stocks, with 2157 stocks. In terms of industry distribution, it is mainly in consumer discretionary, industrial, information technology and finance. Compared with the Nikkei 225 The index has more "technological content". Regardless of whether it is long-term or short-term, the decline of is greater than that of the Nikkei 225 Index.
Source: Wind; as of March 18, 2020
There is currently one QDII tracking the Topix Index - Southern Topix Index ETF, which was established in June 2019. The latest scale is less than 100 million, in terms of liquidity Not as good as the above 3 ETFs.
19 Hong Kong stock QD funds
There are 19 QDII funds tracking 7 Hong Kong stock indexes. The declines this year have all been within 15%, and their performance is slightly better than other global markets.
There are relatively many QDII funds tracking the Hang Seng China Enterprises Index and the Hang Seng Index. Next, we will focus on these indexes and their corresponding QDII.
1. 4 QD funds tracking the Hang Seng Index
The Hang Seng Index was launched on November 24, 1969 and is one of the earliest stock market indexes in Hong Kong. As a blue-chip stock index in Hong Kong, the Hang Seng Index measures and reflects the performance of Hong Kong listed companies with the largest market capitalization and the most active transactions. In 1985, four sub-indices were introduced and all constituent stocks were included in the four sub-indices of finance, utilities, real estate and industrial and commercial. . There are currently 50 constituent stocks, with the financial industry accounting for nearly over 45%. In addition, it also covers information technology, real estate, construction, energy and other industries.
Source: Wind; as of March 18, 2020
Currently, there are 4 QDIIs tracking the Hang Seng Index - ChinaAMC Hang Seng ETF and its feeder funds, China Universal Hang Seng Index, and Dacheng Hang Seng Index.
The largest one is ChinaAMC Hang Seng ETF, with the latest scale of 5.737 billion. The transaction volume in the past week has exceeded 10 billion. The trading volume is very active, which shows that it has still attracted the attention of the market. The top ten stocks of China AMC Hang Seng ETF are mainly concentrated in financial and technology companies, including Tencent, HSBC Holdings , AIA , China Construction Bank, Ping An Insurance, China Mobile and other companies.
2. 4 QD funds tracking the Hang Seng China Enterprises Index
The Hang Seng China Enterprises Index was launched on August 8, 1994, reflecting the performance of Chinese enterprises in the Hong Kong stock market. There are currently 50 constituent stocks, with the financial industry accounting for more than half. Others include information technology, telecommunications, energy, real estate and construction and other industries.
Source: Wind; As of March 18, 2020
there are 4 QDIIs tracking the index, the largest of which is the E Fund Hang Seng H-share ETF.
E Fund Hang Seng H-share ETF was established in August 2012. Its latest scale has exceeded 10 billion, and it is also the largest among all QDII funds tracking Hong Kong stocks. The total transaction volume in the past week was 13.347 billion, and the latest single-day circulation share exceeded 9.5 billion, indicating quite good liquidity.
Fund Quarterly Report shows that the top ten stocks are mainly concentrated in Internet companies and financial stocks, including Tencent, China Construction Bank, Ping An Insurance, ICBC, Bank of China and other companies.
Indian marketQDII
Source: Wind; As of March 18, 2020
Relatively speaking, the performance of the Indian market is poor. Among them, the relatively large ICBC Credit Suisse Indian market RMB has a negative return this year, which is -26.16%. The fund The comparison benchmark is CITIC Securities India ETP index return rate * 90% + RMB demand deposit return rate (after tax) * 10%. The assets are mainly invested in warrants and cash.
Vietnam Market QD Fund
In addition to QDII investing in the Indian market, there is also a newly established QDII investing in the Vietnamese market this year - Tianhong Vietnam Market Fund, with a scale of over 200 million.
Source: Wind; as of March 18, 2020
However, due to the epidemic and other factors, it has been losing money since its establishment, with a decline of more than 16%. The performance comparison benchmark of the
fund is: Vietnam VN30 index yield (converted using valuation exchange rate) * 90% + RMB demand deposit interest rate (after tax) * 10%.
In addition to India, Vietnam and other places, there are also some QDIIs investing in emerging markets. These funds are also worthy of attention.
Emerging market QDII is relatively resistant to decline, but the differentiation is large, with the largest performance gap exceeding 15%
Source: Wind; as of March 18, 2020
Compared with the decline in the US, European, and Japanese markets, the Asia-Pacific market is slightly smaller To resist the fall, some products have performed well, such as Guofu Asia Opportunity, which has fallen by about 7% this year.
QD Fund
which mainly invests in Chinese concept stocks. As overseas markets plummeted, many Chinese concept stocks listed overseas also suffered huge declines, including Tencent, Alibaba, Bilibili, TAL, Meituan, NetEase, and Ai Many high-quality companies such as Qiyi also provide investors with a favorable opportunity to intervene.
There are two main funds here, and their holding lists basically include all the outstanding Chinese companies listed overseas.
1, E Fund CSI Overseas Internet ETF
China Internet 50 Index selects 50 Chinese Internet companies listed on overseas exchanges as sample stocks, reflecting the investment opportunities of well-known Chinese Internet companies listed on overseas exchanges. Therefore, in terms of industry distribution, information technology accounts for 73.7%. In addition, optional consumption accounts for more than 25%, which is more concentrated than the other two Hong Kong stock indexes.
Source: Wind; as of March 18, 2020
Currently, E Fund has QDII tracking this index - E Fund CSI Overseas Interconnect ETF and its feeder funds. E Fund CSI Overseas Internet ETF was established in January 2017, with a latest scale of 2.537 billion, and a latest single-day net inflow of over 1.9 billion, with good liquidity. The top ten stocks of
are:
Source: Wind; as of December 31, 2019
And it is worth noting that after the weight adjustment of this index, the top two holdings of , Tencent and Alibaba, each account for more than 30% of the shareholding, totaling 61.3%. If you are particularly optimistic about these two companies , you can get what you want by buying this fund directly.
2, BoComm CSI Overseas China Internet
China Internet Index reflects the overall trend of Chinese Internet companies listed on overseas exchanges. There are currently 46 constituent stocks. In addition to information technology occupying the majority of the industry, optional consumer companies also occupy a proportion. , constituent stocks include Tencent, Kingsoft, NetDragon , Alibaba Pictures , Zhongan Online and other Internet companies.
Source: Wind; As of March 18, 2020,
currently only , Bank of Communications, China Securities Overseas China Internet , this QDII, tracks the index. The fund was established in May 2015, and currently has a scale of 1.265 billion. Moderate.
The top ten heavyweight stocks in the fourth quarter of 2019 are:
Data source: Wind; as of December 31, 2019
As mentioned above, many QDII funds have taken measures to suspend subscriptions or restrict purchases. From an investment perspective, investors can also borrow related ETFs. Smart investors attach a full list of all QDIIs that track major overseas indexes. And related ETFs are listed separately for investors’ reference:
List of all index QDII funds
Source: Wind; As of March 18, 2020
Related ETF list:
Source: Wind; As of March 18, 2020
Extended reading:
