For a long time, A-share market is not the world of large-cap stocks, but there is a clear large-cap stock rotation phenomenon , for example:
2009-2016, the A-share market generally showed a clear small-cap stock market. In a bull market in 2015, stocks with small market value benefited from their high elasticity and showed strong growth. Increase momentum;
2016-2020, with the continuous influx of northbound funds and the continuous increase in concentration of public funds, large-cap stocks represented by the Shanghai and Shenzhen 300 continued to outperform small-cap stocks;
After the Spring Festival in 2021, the grouping of public funds on traditional "core assets" collapsed one after another, and the market style turned to small-cap stocks, and small-cap companies ushered in the "Davis double-click" of performance recovery and valuation improvement.
Return comparison of mainstream broad-based indexes in different years
Data source;: wind
This year, many investors have focused on small-cap stocks.
In my opinion, the characteristics of small-cap stocks themselves are very obvious, that is, they have the characteristics of high returns and high elasticity . Moreover, when the economy recovers, profit upward cycle and market liquidity are abundant, small-cap stocks often rebound more. Why do you say so?
On the one hand, compared with large-cap stocks, is generally companies that have entered a stable period of operation. A large part of small-cap stocks are companies with relatively short listing time. These companies generally have the characteristics of large performance elasticity, high growth rate, small circulating equity, and easy start-up market. Therefore, many leaders in small-cap stocks with high prosperity often attract the favor of a lot of funds. For example, Jiuan Medical at the end of last year is a good example of a small-cap stock.
On the other hand, in the period of economic transformation, shows a more obvious high growth trend, while small and medium-sized stocks gather a large number of emerging growth companies, and the growth potential is more likely to be better compared with large-cap stocks. After all, most of the companies in large-cap stocks have matured and have limited growth space.
So, what is the correct posture for to layout small-cap stocks? What products can allow us to capture small-cap stock investment opportunities with one click?
『It can better represent the growth style of small-cap stocks - National Securities 2000 Index』
The best way to invest in small-cap stocks is to invest in relevant indexes. When the small-cap index is mentioned on the market, the one that impressed everyone the most may be the CSI 1000 Index , but now there is a more representative small-cap growth style than the CSI 1000 Index, that is National Securities 2000 Index .
Guoshang 2000 Index is composed of all A shares deducting sample stocks of the Guoshang 1000 Index and selecting 2,000 A shares with large market value and good liquidity.
In other words, the Guoshen 2000 Index is composed of companies with the top 1001-3000 A-share market value. Compared with the CSI 1000 Index, the has more component , and its average market value is smaller, which can better represent the style of small-cap stocks, which overall reflects the price change trend of small-cap stocks in the A-share market.
Source: Guozheng Index official website
At present, the circulating market value of the constituent stocks of the Guozheng 2000 Index is 6695.837 billion . The free circulating market value of all constituent stocks is below 30 billion. Among them, the proportion of is below 10 billion 86.25%, the maximum market value is 29.241 billion, the minimum market value is 509 million, the average market value is 3.348 billion, and the median is 2.688 billion. The small market value is very significant.
Data source: Index Company official website, wind
Specifically, the National Certificate 2000 has several characteristics:
1, industry distribution balanced. From the perspective of Wind's first-level industry distribution, the index component stocks cover multiple industries such as industry (27%), materials (20.1%), information technology (17.9%), optional consumption (12.1%), and health care (9.4%). The industry distribution is characterized by dispersion and balance, and is less affected by a single industry. (Data source: wind, as of May 27, 2022)
2, stocks weights are scattered. From the perspective of the quality of the components, the weight of the top 20 components is below 0.5% . The top ten weighted stocks account for 3.65% , and the top 20 heavyweight stocks account for 5.94% . The weight of individual stocks is very scattered. The advantage of this is that they can diversify risks
Data source: Guozheng Index official website, as of May 27
3, and the historical performance is excellent for a long time. From the historical performance trend, the long-term performance of the National Securities 2000 Index is better than other major broad-based indexes. The cumulative yield of in the past 10 years is as high as 145.16% , which is 3 times the 2.6 of the same period Shanghai and Shenzhen 300 Index and 2.2 . Overall, the National Securities 2000 Index has stronger explosiveness and better growth.
Data source: wind, as of May 27, 2022,
, lastly, , As of May 27, the price-to-earnings ratio of the National Securities 2000 Index was 39.55 times, which is located at the 36.75% minute mince of the index in the past five years, is in the undervalued range.
Data source: wind, as of May 27, 2022
In addition, according to Wind's profit forecast, the year-on-year growth rate of 's constituent stock attributable to shareholders in 2022 and 2023 is 18.64% and 15.09% , respectively. At that time, the PE of the index will be digested into 21.05 and 18.29 . From the perspective of valuation and profitability, in the face of the huge development potential of industrial materials and information technology industries, this index has a relatively high investment value in the future.
Data source: wind, as of May 27, 2022
In short, overall analysis, the Guozheng 2000 Index is currently the index with the largest number of components, the smallest average market value, and the more representative of the small-cap stock style in the A-share broad-based index. Such an index is the most suitable for those who want to invest in small-cap stocks.
『Buy a small market, choose Wanjia』
The current market's broad-based index products are mainly targeted at wide-based indexes with large market value and medium market value represented by Shanghai and Shenzhen 300 and CSI 500. The small-cap style wide-based index has fewer tracking tube funds that have tracked the Guoxian 2000 index before.
But now it has it! ! !
On June 14, the first ETF product in the domestic market that tracks the 2000 index of the National Certificate 2000 Index - 0,000 ETF (159628) officially issued . The emergence of this ETF can be said to be an ideal tool for investors to grasp the investment opportunities of small-cap stocks in A shares, with significant allocation value and trading value.
,000 funds was established in 2002. It is a veteran fund company with strong comprehensive strength. The company's public fund management scale exceeds 300 billion yuan, ranking among the top in the industry.
's active equity funds ranked first in the industry in the past seven years, and active fixed income funds ranked first in the past three years, and have won nearly 50 industry authoritative awards including the 2017 and 2018 Golden Fund TOP Company Awards, 2020 Golden Fund·TOP Company Awards, and other nearly 50 industry authoritative awards. This series of data and awards are recognition of Wanjia Fund's investment and research capabilities.
In addition, it is worth mentioning that Yang Kun, the fund manager of Wanjia Guozheng 2000 ETF, has 8 years of investment research experience, including 2.5 years of investment management experience, has served as a researcher in the quantitative investment department, and has served as a Fractabole quantitative IT engineer. Currently, 0,000 ETF 80, ,000 CCD dividend and 0,000 SC 50 ETF 3 products. Wind data shows that as of the first quarter of this year, the job returns of the three funds of were all positive returns , which is actually very rare. (Data source: wind; as of 2022.03.31)
We say that the equity market fluctuations are constantly returning to asset value. As performance continues to grow, asset value is also rising. What we ultimately earn is money from corporate growth. From the perspective of growth, as a collection of small-cap stocks, historical data shows that it performs better.
With the continuous adjustment of A-shares this year, the valuation cost-effectiveness of the Guozheng 2000 has shown.If you are optimistic about small-cap stock investment opportunities, then the first Wanjia Guochuang 2000 ETF (159628) , which is issued and subscribed on June 14, is the first Wanjia Guochuang 2000 ETF (159628) that tracks the National Certificate 2000 Index, is a very good choice.
This article is from the King of ETF
