Science And Technology Innovation Board 50ETF, The Next Popular Track Speculation Of Public Funds

Science and technology innovation board 50ETF is one of the most popular products of fund companies recently.

On July 15, according to the CSRC website, e-fund, Huaxia, Huatai Bairui, ICBC Credit Suisse and other four fund companies have submitted applications for raising 50ETF and linked funds on the science and technology innovation board.

Industry insiders said that many fund companies hope to launch ETF products on the science and technology innovation board, and investors' enthusiasm for the products is expected to be very high.

Competing for the science and technology innovation board 50ETF

The science and technology innovation board 50ETF is a hot product for fund companies.

A fund company's product department told reporters that since the science and technology innovation board ETF is the mainstream broad-based ETF product in the future, all fund companies are very concerned about this product.

On July 22, Kechuang stock index, which represents the best market value of the 50 companies, will be released on the stock market with the best performance of the stock market.

According to the news, in recent months, the fund companies have been fighting for the first batch of 50 ETFs on the science and technology innovation board.

On June 19, the formulation scheme for the 50 component index of the Shanghai Stock Exchange science and technology innovation board was released. Some insiders disclosed that at that time, more than 20 companies competed for authorization, and finally four fund companies, e-fund, Huaxia, Huatai Bairui and ICBC Credit Suisse, won the first batch of declaration for launching the science and technology innovation board 50ETF.

As a matter of fact, for wide base ETFs, priority should be paid to the first mover advantage. The ETFs with leading scale often enter the market early. With the first mover advantage, they gradually establish their mature operation management team and sales promotion system. For example, Shanghai Stock Exchange 50ETF, the top three product scale accounted for 99%.

The latest broad-based scientific and technological innovation board 50ETF is undoubtedly a piece of "fat meat" that everyone wants to compete for.

It is reported that companies with 50 base stocks are not necessarily required to have rich experience in large-scale ETF investment, such as 50 base stocks, and it is not necessary to have rich experience in large-scale ETF investment. In addition, there are also corresponding requirements for the management scale and risk control of equity funds.

Judging from the first batch of shortlisted companies, e-fund and Huaxia fund companies are in the forefront of the industry in terms of total scale, and the scale of their stock based ETFs is also in the lead. In terms of investment experience in the science and technology innovation board, the two fund companies have also arranged to issue science and innovation theme funds.

And the strength of the other two fund companies in ETF is not weak.

As of the end of this year, Credit Suisse has raised 600 million yuan of its products in the top half of this year. The scale of Index Fund (concept type) of the company reached 47.5 billion yuan, of which the scale of non monetary ETF exceeded 10 billion yuan, all of which were in the leading level in the industry, and continued to rank first in the bank fund family.

Huatai Bairui fund started to develop ETF business in 2006, which is one of the first fund management companies to issue ETF in the industry. In 2012, the company successfully launched the first cross market ETF product Huatai Bairui Hushen 300etf. In December 2019, the Shanghai Stock Exchange CSI 300 ETF options with Huatai Bairui Hushen 300etf as the target were listed and traded, which has become one of the most active options on the exchange.

However, it is not to say that those who follow up later have no chance.

It is reported that recently, a number of fund companies have also obtained the authorization of the science and technology innovation board 50ETF.

Expected to become a hit

The industry believes that the science and technology innovation board 50ETF is expected to become a popular product with a scale of 10 billion.

"The science and technology innovation board 50 index, which includes the relatively large market value and better quality companies in the science and technology innovation board, its performance is worth looking forward to, so many fund companies may be more willing to launch such an ETF product, and investors' enthusiasm for its subscription should be relatively high." Yang Delong, chief economist of Qianhai open source fund, thinks.

Zhang Ting, a senior Macro Analyst at GESHANG wealth, believes that the biggest feature of the science and technology innovation board is that all the industries it belongs to are in the field of high and new technology, and the potential income space in the future is relatively large. As the first batch of products to be issued, the ETF of the science and Technology Innovation Board will receive relatively high attention.

In fact, the performance of the science and technology innovation board has been quite good since its establishment last year.

Zhou Keping, manager of Huaxia science and technology innovation and Huaxia Renaissance fund, pointed out that from the third quarter of 2019 to the first quarter of 2020, the growth rate of revenue and net profit of science and technology innovation board company was significantly better than that of other sectors, showing obvious growth advantages. From the third quarter of 2019 to the first quarter of 2020, the cumulative growth rate of the company's accumulated revenue is 14%, 13% and - 9%; in terms of net profit, the growth rate of cumulative net profit of the company from the third quarter of 2019 to the first quarter of 2020 is 43%, 26% and 21% respectively. Because there are many companies representing the new economy, new business models and strong demand for hard technology, the science and technology innovation board has shown great resilience under the impact of the epidemic.

According to Zhang Zhen, general manager of ICBC Credit Suisse index investment center, this year continues the growth style started in the second half of last year. From the perspective of science and technology investment cycle, it is still worthy of attention in the long term.

"For customers who know and want to invest in the science and technology innovation board, they can pay attention to the science and technology innovation board 50 index, realize the purpose of investing in 50 high-quality listed companies on the science and technology innovation board through relevant products, and reduce the potential fluctuation of investment in science and technology innovation board to a certain extent through the decentralization function of the index." Zhang said.

Liu Jun, director of Investment Department of Huatai Bairui index and the proposed fund manager of ETF of Shanghai Science and Technology Innovation Board of Huatai Bairui, said that investment in technology innovation enterprises is highly uncertain and unpredictable, and diversified portfolio investment is a more feasible investment mode. The 50 index of the science and technology innovation board has made a different design arrangement from the traditional broad base index in terms of index compilation. The adjustment frequency of constituent stocks has been changed from once every half a year to once every quarter. This is also in order to adapt to the characteristics of science and technology innovation enterprises and the initial market characteristics of science and technology innovation board. At the index level, it can make timely adjustments according to market changes and enhance the representativeness of the index to the science and technology innovation board.

Liu Jun believes that after the launch of ETF products tracking the 50 index of the science and technology innovation board in the future, it will become one of the most important representative index ETFs in the A-share market after Shanghai Stock Exchange 50 ETF, Shanghai Shenzhen 300 ETF, China Securities 500 ETF and growth enterprise market ETF, and will greatly reduce the threshold for investors to participate in investment in the science and technology innovation board.

At present, individual investors need to meet the conditions of 500000 capital and 2 years of investment experience to participate in the stock market of science and technology innovation board, and the introduction of ETF enriches the investment tools for investors to participate in the stock market.

"In addition, the ETF of the science and Technology Innovation Board will also be in line with the institutional arrangement of the science and technology innovation board, and the ETF's rise and fall will be adjusted to 20%, greatly enhancing the tradability and liquidity of the ETF." Liu Jun said.

According to wind data, on July 16, the total market value of the science and technology innovation board on the first anniversary of its establishment was 2590 billion yuan, accounting for 3.45% of all a shares. The science and technology innovation board is a "hot fried chicken" sought after by investors.

However, the development of science and technology innovation board 50ETF also faces risks.

"The cost of establishing a position is relatively high." Yang Delong said, however, there are still a few months from the issuance to the establishment of positions. Whether there is a better time point for building positions at that time depends on the judgment of fund managers.

Up to now, the number of science and technology innovation board theme funds that can participate in science and technology innovation board investment has reached 56. However, compared with the science and technology innovation theme fund, science and technology innovation board 50 ETF has outstanding unique advantages for investors.

For example, the science and technology innovation theme fund is an active equity fund with high relative fee rate, and only needs 80% of its position to invest in science and technology stocks, not necessarily in the science and technology innovation board; while the science and technology innovation board 50ETF is a passive fund with low rate and core assets in the stock of science and technology innovation board.

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