Fee reduction again! Following the fee reduction of the ChiNext 100 ETF Huaxia (159957) and its associated funds, today two more products and their associated funds have officially announced a fee reduction!
Huaxia SSE Science and Technology Innovation Board 100 ETF (588800) and its associated funds, Huaxia CSI Science and Technology Innovation Entrepreneurship 50 ETF (159783) and its associated funds plan to adjust the management fee rate and custody fee rate, and correspondingly amend the legal documents. The products after the fee reduction will adopt the lowest fee structure in the current market, helping investors to start the "money-saving mode".
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The lowest in the entire category!
According to the fund announcements, the management fee rate for Huaxia SSE Science and Technology Innovation Board 100 ETF (588800) and its associated funds, Huaxia CSI Science and Technology Innovation Entrepreneurship 50 ETF (159783) and its associated funds, has been reduced from 0.50% to 0.15%, and the custody fee rate has been reduced from 0.10% to 0.05%. The announcement will take effect today (October 16).
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Including the previously reduced ChiNext 100 ETF Huaxia (159957) and its associated funds, the current three products all use the lowest fee structure in the market, which is a real reduction in fees and benefits.
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Continuously attracting funds
Around the National Day, A-shares ushered in a surging market. From mid-September to after the National Day, within 10 trading days, the market index once rose from below 2700 points to the 3700 point mark.
On October 8, the first trading day after the National Day, A-shares' transaction volume set a new historical record. Within 20 minutes on that day, it broke through 100 billion yuan, nearly 2.5 trillion yuan in half a day, and reached 3.45 trillion yuan for the whole day, breaking through 3 trillion yuan for the first time.Whether it's the speed and strength of the rise, or the magnitude of transaction volume, this round of market movement is historic enough to be recorded.
Due to the rapid rise and quick pull, elasticity has become one of the most important factors for investors in this round of market movement, to the extent that the 20cm fluctuation range of the Science and Technology Innovation Board and the Growth Enterprise Market has become the key to winning or losing in this wave of market movement; coupled with the technological growth attributes of the two sectors, it has become an important battlefield for capital layout.
Taking the Science and Technology Innovation 100 ETF Huaxia (588800) as an example, since the market started on September 24, as of October 14, in 10 trading days, the cumulative net inflow of funds has reached nearly 2.6 billion yuan, the share increase is 2.71 billion shares, an increase of 60.2%; the scale increase is 3.106 billion shares, an increase of 108.3%.
Looking at the Huaxia China Securities Science and Technology Innovation Entrepreneurship 50 ETF (159783), in the same period, the cumulative net inflow of funds exceeded 450 million yuan, the share increase is 694 million shares; the scale increase is 1.79 billion shares, an increase of 44.1%.
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Layout of core technology
Compared with the main board, the Science and Technology Innovation Board and the Growth Enterprise Market focus on the main position of scientific and technological innovation, with sufficient innovation-driven potential and higher elasticity.
Science and Technology Innovation 100 ETF Huaxia:
One-click layout of new stars in science and technology innovation, growth dark horses
This product mainly tracks the Shanghai Science and Technology Innovation Board 100 Index, taking 100 stocks with medium market value and good liquidity other than the Science and Technology Innovation 50 samples as samples, with more than 80% of the component stocks having a market value below 20 billion yuan, with distinct small-disk growth style characteristics, focusing on the investment trend of market value sinking, it is the "potential stock" of the Science and Technology Innovation Board.Reviewing the past three rounds of the STAR Market trend, the STAR 100 index has significantly outperformed major growth indices such as the CSI 500 and CSI 1000, reflecting a more extreme growth and upward price elasticity.
The positioning of the STAR Market is to serve strategic emerging industries and high-tech industries, with a strong attribute of hard-core technology and a significant "core technology valuation" attribute.
In addition, the STAR 100 also has a high concentration of "new quality productive forces". The connotation of new quality productive forces is to develop strategic emerging industries and future industries, which coincides with the positioning of the STAR Market.
STAR Market Innovation and Entrepreneurship 50 ETF:
Combining the strengths of two boards, gathering the light of technology
This product mainly tracks the STAR Market Innovation and Entrepreneurship 50 Index, selecting 50 large-cap emerging industry targets from the STAR Market and the ChiNext Board to form an index, gathering high prosperity, high growth, and high development frontier fields of science and technology, representing 50 top Chinese technology leaders with innovation ability and growth. It focuses on the electronic, electric power equipment, and pharmaceutical and biological industries, covering popular themes such as new energy vehicles, semiconductors, and innovative drugs.
The STAR Market Innovation and Entrepreneurship 50 Index has a high level of R&D investment, good profitability, and growth potential. The current price and valuation are at a historical low since the opening of the board. The adjustment time and space have been relatively sufficient. With the improvement of future profits, it is expected to rebound.
The STAR Market Innovation and Entrepreneurship 50 Index is a powerful tool for investors to share the dividends of China's technology growth and to layout technological innovation.How to Operate During Consolidation and Correction?
After the recent "surge" in A-shares, the market has entered a phase of consolidation and fluctuation. After the correction, the market has arrived at a position with cost-effectiveness.
Looking at the equity risk premium (ERP), as of October 16th, the risk premium of the Wind All A index was 3.50%, at the 87.48th percentile over the past 10 years. Highlight this! The higher the ERP, the higher the investment cost-effectiveness of the stock market compared to the bond market. Currently, the cost-effectiveness of domestic stocks versus bonds is still at a relatively high level.
In terms of index valuation, as of October 14th, the price-to-book ratio (LF) of the Wind All A index was 1.53, with nearly 20% of the repair space left to return to the historical median level.
Huafu Securities believes that although the domestic stock market has surged significantly recently, the yield of the bond market is at a historically low level due to the impact of the economic fundamentals and the reduction of policy interest rates, and the valuation of the stock market has continued to correct deeply in the past few years. Therefore, the investment cost-effectiveness of the current stock market compared to the bond market is still at a relatively high level.
CITIC Securities analysis, fiscal policy is the focus of the current market, the policy stance of the Ministry of Finance is overall beyond expectations, the shift in policy thinking is more important than the magnitude of the effort; the current market is in the transition stage from a big reversal of expectations to a big turning point in the market trend. After the market's pulse-like rise in the early stage, the game between bulls and bears has intensified, the pace of entry of incremental funds from outside the market has slowed down, but the scale of potential market funds is still large. It is expected that the market trend will gradually shift from being driven by capital sentiment to being driven by fundamental verification, and the market characteristics will shift from pulse-like rises and falls to stabilization and slow growth.
For long-term investment, excellent growth in line with the main line of the times is the key factor in determining the return rate.
Overall, the Science and Technology Innovation 100 Index focuses on small and medium-sized companies in the Science and Technology Innovation Board, suitable for investors who are willing to take higher risks and pursue high growth potential; while the Science and Technology Innovation and Entrepreneurship 50 Index spans both the Science and Technology Innovation Board and the Growth Enterprise Board, selecting larger market value emerging industry companies from both sectors, suitable for investors who pursue technological innovation and hope to invest in larger market value companies.
After the adjustment following the continuous rise, it is again a suitable time for layout. Standing in the present and looking to the future, Huaxia SSE Science and Technology Innovation Board 100 ETF (588800) and its linked funds, Huaxia CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159783) and its linked funds may be one of the strategic assets worth configuring.The benchmark index for the Sci-Tech Innovation 100 ETF Huaxia (588800) is the SSE Sci-Tech Innovation Board 100 Index, with its complete accounting year performance from 2020 to 2023 being: 30.28%, 31.64%, -31.26%, and -12.53%. Historical performance of the index does not predict the future performance of the fund product.
The benchmark index for the Sci-Tech Innovation and Entrepreneurship 50 ETF (159783) is the CSI Sci-Tech Innovation and Entrepreneurship 50 Index, with its complete accounting year returns from 2020 to 2023 being 86.9%, 0.37%, -28.32%, and -18.83% respectively. Historical performance of the index does not predict the future performance of the fund product.
Subscription: For Class A funds, a one-time subscription fee is charged upon subscription, with no sales service fee; Class C has no subscription fee but charges a sales service fee. Due to differences in fee collection, establishment time, and other factors, there may be significant differences in long-term performance between the two, please refer to the product's regular reports for details.
Special risk warning for the Sci-Tech Innovation Board: The fund's assets can be invested in the Sci-Tech Innovation Board, facing unique risks arising from differences in investment targets, market systems, and trading rules, including but not limited to the following special risks: liquidity risk, delisting risk, and stock price fluctuation risk.
For ETF funds, investors face potential risks such as failure to control tracking error to the agreed target, cessation of service by the index compiler, suspension of trading of constituent securities, deviation of the target index return from the average return of the stock market, volatility risk of the target index, deviation risk of the fund's investment portfolio return from the target index return, risk of changes to the target index, risk of premium or discount in the secondary market trading price of the fund shares, risk of errors in the subscription and redemption list, risk of errors in decision-making based on IOPV and IOPV calculation errors, delisting risk, risk of investor subscription and redemption failure, risk of liquidity of the redemption consideration of the fund shares, and risk of derivative investment, etc.
For ETF feeder funds, the fund's assets are mainly invested in the target ETF, and in most cases, a high proportion of the target ETF investment will be maintained. The net value of the fund may fluctuate with the net value of the target ETF, and the related risks of the target ETF may directly or indirectly become the risks of the ETF feeder fund. The specific risks of ETF feeder funds also include: tracking deviation risk, performance difference risk with the target ETF, risk of cessation of service by the index compiler, risk of changes to the target index, risk of suspension or default of constituent securities, etc.