Rebound Buys: These Assets Stand Out

Before the holiday,the A-share market staged a super counter-offensive,igniting investor enthusiasm.Among them,broad-based indices took the lead in rebounding,with the CSI A50 Index,representing core assets,performing exceptionally well,attracting funds to actively increase their positions,and the trading of CSI A50-related ETFs was active,with asset scale rising rapidly,among which Dacheng CSI A50 ETF's liquidity and share growth were among the top.

After the holiday,the market opened again amid investor expectations,and the industry expects that the sentiment of funds will further warm up,and the market rebound momentum is strong.Faced with such a market,grasping broad-based index ETFs can better seize the rebound.Looking at the fundamentals,valuation,and development prospects of the target index comprehensively,CSI A50-type ETFs are cost-effective configuration options,and Dacheng CSI A50 ETF is a "hexagonal warrior" that meets multiple conditions.

CSI A50 takes the lead in the rebound

The market is strong,and the broad-based market takes the lead,with core assets acting as the vanguard of the rebound.

In the last three trading days before the holiday,the Shanghai Composite Index successfully recaptured the 3000-point mark in just three days,during which the CSI A50 Index surged 18.11%,leading among major broad-based indices.On September 30,the CSI A50 Index surged 8.01%,recording nine consecutive days of sunshine since September 18.

Looking at a longer period,the recent bottom rebound of the CSI A50 Index is obvious.On September 13,the CSI A50 Index set a new low close in half a year,and as of September 30,the index has risen nearly 27%,leading the Shanghai Composite Index,CSI 300 Index,and other core broad-based indices during the same period.

The strong rebound of the target index has driven the surge of CSI A50 ETF.As of September 30,since September 18,the average increase of 10 CSI A50 ETFs was 28.68%,and the average surge in the last three trading days before the holiday was 19.34%,among which Dacheng CSI A50 ETF (159595) and other four products increased by more than 20%.

Comprehensive market analysis shows that the outstanding performance of CSI A50 and Dacheng CSI A50 ETF (159595) and other products in the market rebound comes from three aspects.First,the policy of stable growth is beneficial to the large-cap style.Recently,the intensity of economic support policies is unprecedented,which is conducive to the bottoming of the basic confidence,and the style is biased towards large-cap stocks.The CSI A50 covers large-cap leading companies in various industries,with a stable style in ultra-large-cap,which is in line with the current market environment where large-cap has a higher winning rate.

In this wave of the market before the holiday,the leading sectors mainly include food and beverage,social services,electricity,banks,and other core assets,which are highly consistent with the weighted industries of the CSI A50 Index.

Second,the index industry coverage is balanced,taking into account the core of value and growth styles.A research report from China Merchants Securities pointed out that historically,the changes in the micro-liquidity of the stock market have a significant impact on the relative performance of A-shares' growth and value styles.As the trend of capital improvement is further confirmed,it will bring back the growth style.Compared to traditional broad-based indices,the CSI A50 Index,based on its compilation rules,not only covers the leaders of the traditional economy but also includes the leading companies of the emerging economy,making it easier to grasp the overall market trends and attract capital inflows during market rebounds.The continuous net inflow of funds into the Dacheng CSI A50 ETF (159595) also corroborates this point.

Finally,from a technical perspective,the A50 Index has experienced a nearly two-month decline.This technical adjustment has laid the foundation for the index's rapid rise,and many institutional investors have chosen to enter the market at this time,further driving up market prices.According to Wind data,the Dacheng CSI A50 ETF has rebounded by 30% since September 18.

Capital increases in the first batch of CSI A50 ETFs

In the pre-holiday market trend,whether in terms of capital attraction or transaction volume,ETFs tracking the CSI A50 are among the "top flows" in the broad-based ETF market.

Several CSI A50 ETFs have attracted market attention,and their scale has also increased.Wind data shows that as of September 27,the total scale of the first batch of 10 CSI A50 ETFs was 37.71 billion yuan,a surge of 1.3 times compared to their establishment.Compared to September 13,when the index hit a phase low,the total scale of the first batch of CSI A50 ETFs increased by 7.5 billion yuan,a growth of nearly a quarter.

Looking at individual products,the Dacheng CSI A50 ETF's scale increased by 1.45 billion yuan,ranking first in its category.As of September 27,the Dacheng CSI A50 ETF and two other products' net asset value exceeded 5 billion yuan.The scale of this ETF has been rising steadily recently,breaking through the 4 billion yuan and 5 billion yuan thresholds consecutively since mid-to-late September,and is now firmly at 5.3 billion yuan.

According to Wind data,as of the close on September 27,with the secondary market price of eight consecutive increases,the CSI A50 ETF fund (159595) has continuously received net capital inflows for nearly 8 days,with an increase of more than 757 million shares,ranking first in share growth among similar products.

It is worth noting that during the same period,5 out of 10 similar funds,or half,experienced net redemptions.Looking at the capital inflow during this period,the CSI A50 ETF fund received a single-day net inflow of up to 199 million yuan,totaling a "capital attraction" of 731 million yuan over 8 days.

While demonstrating excellent capital attraction,market capital transactions are also active.As of the close on September 30,the transaction volume of the CSI A50 ETF fund (159595) in the past three days and five days was 1.71 billion yuan and 2.62 billion yuan,respectively,ranking first in liquidity among similar A50 ETFs; since September 18,the transaction volume of the CSI A50 ETF fund reached 3.77 billion yuan,ranking first among 10 similar products,far exceeding the average level of 2.02 billion yuan among similar products.

Looking at another indicator of liquidity,the turnover rate,the average daily turnover rate of the CSI A50 ETF fund in the past three days and five days was 10.9% and 10.6%,respectively,also ranking first among similar A50 ETFs.Seizing the Rebound Opportunity through the CSI A50 ETF Fund

With multiple favorable factors emerging,the market's rebound momentum is expected to be strong and sustainable,and the CSI A50 is a powerful tool for current layout opportunities.

Some institutions have indicated that a policy shift is likely to support a corrective rebound in the A-share market amidst fluctuations,significantly increasing trading opportunities.In the first phase,where the intensity of expected game-playing is strongest,the market typically focuses on rebounds in oversold sectors.After the overall market has cumulatively recovered to 3000 points,it is recommended to gradually shift from a probability mindset to one that considers both the probability of success and fundamentals.

Overall,the policy combination has a positive effect on market repair expectations and increasing trading activity; it also directly benefits the long-term development of industries such as banking,real estate,and consumption,which are the engines of both new and old economic dynamics,highlighting the endurance value of core assets.

As a key broad-based index this year,the CSI A50,with its unique compilation method,has become an important tool for investors to dynamically layout core assets.

Firstly,the index selects core assets with high ROE and high dividend yields,comprehensively considering key indicators such as total market capitalization,free float market capitalization,ESG,and interconnectivity,to select the best of the best,choosing leading enterprises that can continuously optimize industry structures and have long-term profitability.

As of September 30,the constituent stocks of the CSI A50 index are mainly large-cap stocks,with 41 having a total market capitalization of over 100 billion yuan; in addition,the index has performed well in profitability (ROE) and dividend returns (dividend yield),significantly outperforming the Wind All A Index for the same period.

Secondly,the index covers core assets of both traditional and emerging industries.Compared to the commonly seen scale-based broad-based Shanghai Stock Exchange 50,the compilation of the CSI A50 focuses more on comprehensiveness,making it more suitable as a representative of A-share core assets in the context of high-quality development.

From the distribution of the top ten industries and the top ten constituent stocks,it can be seen that the index has gone through financial real estate leaders,to the Mao Index,Ning Combination,and then to the recent high dividend leaders,effectively grasping the core assets in each market trend.

Currently,it is the right time to layout the CSI A50 index.Firstly,the historical performance of the CSI A50 index is quite good.As of August 31,2024,the index has risen by 33.02% since its establishment,outperforming the Shanghai-Shenzhen 300 and other 50-class indices.Secondly,the current valuation of the index is still in a low range.The current price-to-earnings ratio of the CSI A50 Index is 15.24,which is below the median level and is at the 29.81% percentile since its launch.After three years of valuation digestion,it has a high safety margin and room for recovery.

Thirdly,the long-term prospects are promising.In terms of industry composition,the CSI A50 Index covers 26 first-level industries of Shenwan,focusing on important industries in the national economy,truly reflecting the current characteristics of China's economy and the long-term momentum,and has long-term growth momentum.

How to choose a CSI A50 ETF product?For investors,there are six elements worth paying attention to: scale; share stability; average daily turnover; excess return; annualized tracking error; IR indicator.

In the current CSI A50 product camp,there are already "hexagonal warriors" that meet the above conditions.Taking Dacheng CSI A50 ETF (159595) as an example,its scale is firmly in the first echelon of the same category,and the customer structure is rich and healthy; there are many market participants,and it will not cause a large discount or premium due to the fluctuations in the positions of individual customers; in terms of liquidity,the average daily turnover,agency transaction costs,market depth,and share creation ability continue to lead.

It is understood that since the establishment and listing of Dacheng CSI A50 ETF,it has maintained a low tracking error,and the fund manager actively operates to strive for excess returns,achieving a good balance between increasing scale,controlling tracking error,and achieving excess returns.In addition,the fund calculates IR (excess return/tracking error) to achieve a leading risk-return ratio in the industry,and is committed to providing investors with the most cost-effective CSI A50 ETF.