asiangamesguangzhou| E Fund issued China's first SSE 50 enhanced strategy ETF

May 9thAsiangamesguangzhouShanghai 50ETF enhancement (subscription code: 563093) launched, which is the first enhancement strategy ETF product based on the Shanghai 50 index in China, launched by Yi Fonda Fund.

As a broad-based index launched earlier by A-shares, the Shanghai 50 Index is composed of the 50 most representative stocks with large scale and good liquidity in the Shanghai stock market, comprehensively reflecting the overall performance of a group of leading enterprises with the most market influence in the Shanghai stock market. The large market capitalization attribute of the index is obvious. The number of constituent stocks accounts for less than 1% of A shares, but the market capitalization accounts for more than 20%. As of April 30, the average market capitalization of constituent stocks reached 360 billion yuan. At the same time, the profitability of the index is outstanding, and the overall ROE level is about 11%, far exceeding the average level of A shares.

Different from ordinary index funds, Shanghai 50ETF enhancement, as an enhancement strategy ETF, will carry out some active enhancement operations on the basis of tracking the underlying index, and strive to obtain excess returns. According to the fund contract, the Shanghai 50ETF enhancement strives to control the daily tracking deviation between the growth rate of fund net worth and the performance benchmark no more than 0.Asiangamesguangzhou.35%, with an annualized tracking error of no more than 6.5%. On this basis, we pursue a return on investment that exceeds the Shanghai 50 index.

It is understood that Zhang Shengji, the proposed fund manager, has 19 years of experience in the securities industry and 14 years of investment experience, and deepens the field of fundamental index enhancement. In his view, sustained performance growth is the fundamental source of long-term rise in stock prices, and only enterprises with core competitive advantages can achieve sustained performance growth. Therefore, in the management, Zhang Shengji will adhere to the concept of value investment, through in-depth fundamental research, select companies with core competitive advantages, build and optimize the investment portfolio.

At present, Zhang Shengji is still in charge of an index enhancement fund, Yi Fangda Shanghai 50 Enhancement, which is also based on the Shanghai 50 Index, which is Zhang Shengji's longest-managed product. Data from the annual report over the years show that the fund has achieved positive excess returns in 9 of the 11 full years since Zhang Shengji took office.

The enhancement strategy ETF has the characteristics of low ETF rate, strong liquidity, convenient transaction and so on, and can actively "deviate" from the benchmark. Zhang Shengji said that enterprises with significant competitive advantages will be selected for long-term allocation and strive to obtain excess returns.