The reason is that I wrote an article some time ago, "Several Big Pits in QDII Investment", which mentioned some difficulties in QDII investment. Many people think it is better not to buy it after reading it. Some even say that QDII fund managers are too good and many tracking indexes cannot keep up. Is this really the case?
Give some examples.
A very famous Vietnamese QDII fund : Tianhong Vietnamese market stocks (QDII) A (008763), the increase since its establishment on January 20, 2020 was 44.31%, while the same period Vietnam's Ho Chi Minh Index (VNINDEX.GI) increased from 978.63 points to 1284.08 now, an increase of 31.212%.
And since this year, Tianhong Vietnam QDII has increased by -11.58%, and the Ho Chi Minh Index has increased by -14.30%.
From various dimensions, it did not underperform the index (of course, this is not an index fund) nor did it underperform the performance benchmark. The performance benchmark is: Vietnam VN30 Index yield (using valuation exchange rate discount) × 90% + RMB current deposit interest rate (after tax) × 10%.
Let's look at another more famous Chinese Internet product, Bank of Communications CSI Overseas China Internet Index (164906):
slight underperformed the index in the past three months, but in the long run, it has made certain excess returns.
Compared with the products of Bank of Communications that track CSI Overseas China Internet Index , I personally focus more on tracking CSI Overseas China Internet 30 RMB index , such as GF Overseas China Internet 30 (QDII-ETF) (159605) and CSI Overseas China Internet 30 ETF (QDII) (159607), because the latter holds more concentrated. Of course, I don’t think the former is not good, each has its own emphasis. The product of the Bank of Communications has been made in a scale of 10 billion yuan, so you can’t accept it.
Nasdaq 100ETF is also a very mainstream product that everyone often trades. The more mainstream in the market, in fact, the tracking error is not very large:
And this product is very convenient to trade in , T+0, if your stock account is fund-free 5, it will be even more enjoyable (there should be an advertisement for opening an account, but unfortunately, there is no one. Please don’t send me private messages to me again, I really don’t do account opening business).
A few weeks ago, a friend from the channel gave me a long roadshow material for the Vietnam QDII fund manager Hu Chao. After careful study, I found that it is indeed not easy to do QDII.
has some Q&A, involving many operating details, which are very interesting:
Vietnam's stock market trading volume is between US$1.1-1.5 billion, and the market value of the entire market is only US$300 billion, which is completely incomparable to A-share , but from the perspective of liquidity, the liquidity in Vietnam is very good. Calculate if the extreme situation Vietnam QDII needs to be liquidated, it can be sold all in less than a week.
foreign capital accounts for about 17%, state-owned assets account for 20%, and institutional investors in Vietnam are only about 10%, and the rest are retail investors and actual controllers of listed companies. This structure is very similar to A-shares many years ago.
Someone asked why Tianhong's Vietnam QDII is very different from the performance benchmark VN30 index. The fund manager replied that there are about 40% of the stocks in the VN30 index and it has reached the upper limit of the foreign shareholding ratio and cannot be bought.
What I understand is that this also leads to some companies with large increases in the past that may not be able to hold it, which directly affects the beta income.
After watching the roadshow materials, how do you say it? I think it is much more difficult to do QDII than to be active in China. Because of various restrictions, you cannot get β returns. You need to bypass various liquidity restrictions to find α returns, but in the end it seems that it is a β return.
Of course, I will declare here that I do not hold that Vietnamese stock QDII, nor do I use it as a basis for any investment.
Regarding the difficulties in QDII operation, I also had a link with Mr. Ni Bin, the QDII fund manager of Huaan Fund , and asked him why the tracking cost of QDII index is relatively high:
. Many domestic indexes are price indexes, while many foreign indexes are full-return indexes, that is, dividends are not excluded. This makes it easier for domestic indexes to outperform, because the benchmarks for performance do not include dividend factors, but foreign index dividends are very slow to receive and tax, so tracking is more difficult;. Keep a part of the necessary cash in overseas accounts, and exchange rate factors will also disturb the net value of the fund. If the managed products face more frequent subscription and redemption. Liquidity management is also a huge challenge;
3. However, derivatives in overseas markets are more developed, and some tools can also be used to improve tracking accuracy. There are also complex reasons for the slow redemption of
. Hu Chao explained: The process of buying funds in
is like this. Suppose the customer subscribes before 3 pm this afternoon, in theory, you will use today's net value as the net value of the fund to buy. Then tomorrow's market rises or falls will theoretically directly affect your net value, but in fact, investors can only see the confirmed net value and share in T+2.
The conversion of exchange rates is relatively complicated, because Vietnamese Dong and RMB do not have a direct exchange market. So after we received the RMB funds purchased by our customers in China, we first exchanged it for US dollars and transferred it to Hong Kong, because our offshore custody center is in Hong Kong, and then transferred from Hong Kong to Vietnam. The sub-custody bank in Vietnam will retain the US dollar. Every time we buy stocks, the sub-custody bank directly converts the US dollar into Vietnamese dong and goes to the exchange for settlement and settlement. The whole process may take about 5 days.
After selling the stocks, the Vietnamese Dong was directly converted into US dollars and transferred back to the Hong Kong custody bank. Therefore, the actual cash coins held by the fund are only RMB and US dollars, but most of the stocks are denominated in Vietnamese Dong.
Let me summarize a few precautions for QDII products:
. If QDII products can be invested on and off the market, such as LOF, it is recommended to choose on-site without a premium, because the handling fee is cheap, the liquidity is good, and real-time transactions are real-time. The only disadvantage is that they cannot invest regularly, and they may not be able to hold on-site purchases. If you buy QDII off-market, the redemption process will take 10 days, and the efficiency of using funds is too low. Unless you are really too lazy to open a stock account, for convenience, it is also good to practice long-term value investment.. The capacity of QDII is limited, so many products cannot withstand publicity. If you buy it when it is small and popular, the effect may be better. For example, a QDII investing in overseas emerging markets may have a strategic capacity of only 10 billion. When it reaches the upper limit, the returns may decline. There are really not many QDIIs in emerging markets nowadays, so buy and cherish them. Of course, emerging market countries also have relatively large risks and fluctuations. It is recommended that the allocation ratio should not be too high unless you really understand and are particularly sure of this opportunity.
3. Retail investors should not get involved in QDII bond funds. You can’t even understand domestic debts. If you buy overseas debts, it’s a gift. Don’t buy them if you can, otherwise you won’t know where the loss is.
I have never understood since the crude oil fund storm in 2020. Why do some people blame the fund manager for losing money when buying QDII? I believe that most fund managers do not have subjective intentions to do evil, and still want to make the product well within their own capabilities. QDII has been developing in China for a long time, but it has always had a weak sense of existence and insufficient product innovation. However, it has been continuously approving quotas over the years. I believe it will become an important tool for residents' asset allocation in the future.
Whether it is a QDII fund or an ordinary active equity fund, they are all tools for our investment. Only by understanding the underlying assets and operating mechanisms can we better invest. Personal opinion is not necessarily correct.
(Risk warning: Equity funds are high-risk varieties, so investments should be cautious.This information is not used as any legal document. All information or opinions expressed in the information do not constitute the final operational advice for investment, legal, accounting or taxation. I do not make any guarantees for the final operational advice regarding the contents in the information. In no event shall I be liable for any loss arising from any use of any content in this material. my country's funds have a short operating time and cannot reflect all stages of stock market development. The past performance of fixed investment does not represent future performance. Investors should fully understand the difference between regular fixed investment in and zero deposits and withdrawals of savings. Regular fixed-quota investment is a simple and easy way to guide investors to make long-term investments and average investment costs. However, regular fixed-quota investment cannot avoid the inherent risks of fund investment, cannot guarantee investors' returns, and is not an equivalent financial management method that replaces savings.
Before investing in fund in , investors should carefully read the fund's "Fund Contract" and "Recruitment Prospectus" and other fund legal documents, fully understand the risk-return characteristics and product characteristics of the fund, fully consider their own risk tolerance, and rationally judge the market on the basis of understanding the product or service situation and listening to appropriate opinions, make investment decisions prudently based on factors such as their investment goals, maturity, investment experience, and asset status, and independently bear investment risks. The market is risky, so be cautious when entering the market. The fund manager reminds investors of the principle of "buyers are responsible for" in fund investment. After investors make investment decisions, the investment risks caused by the fluctuations in the fund operation status, the fluctuations in the listing trading price of the fund shares and the changes in the fund net value shall be the responsibility of the investors themselves. )
