A Deal Of 4.6 Billion Kechuang 50ETF Listed For The First Time

On November 16, the first batch of Kechuang 50ETF was listed on Shanghai Stock Exchange. According to the statistics of 21st century economic report reporters, the transaction volume of four Kechuang 50etfs reached 4.555 billion yuan.

As an ETF product tracking the only index of the current science and technology innovation board (Kechuang 50 Index), the first batch of Kechuang 50ETF was listed on the first day and was sought after by funds.

"Judging from the trading volume of the four funds on the first day of listing, the trading volume of the four science and technology innovation board 50etfs of Huaxia, ICBC, e-fund and Huatai Bairui were 14.45 million, 3.56 million, 6.88 million and 6.23 million respectively. The four science and technology innovation board 50etfs are generally in a relatively active state. " On November 16, Zhang Ting, chief strategist of GESHANG financial management, said.

Active trading on the first day

Four science and technology innovation board 50ETF transactions were active. Only one minute after the opening, the turnover of four science and technology innovation board 50ETF products reached 500 million yuan, of which the transaction value of Huaxia Kechuang 50ETF exceeded 200 million yuan.

According to wind data, as of the end of the day, the turnover of Huaxia Kechuang 50ETF (588000) was as high as 2.119 billion yuan, that of e-fonda was 1.006 billion yuan, that of Huatai Bairui was 911 million yuan, and that of ICBC was 519 million yuan.

As for the large trading volume of Kechuang 50ETF, Cheng Xi, fund manager of Kechuang board 50 ETF, said, "maybe the investors who applied for purchase at that time had trading demand. After opening up, a relatively large trading demand suddenly emerged. The first day of ETF listing would have such effect, so there is no need to be too nervous. In addition, the volatility of Kechuang 50 is particularly large, which is suitable for trading, so the enlargement of trading volume is also a normal phenomenon. "

Among the 504 reports, ETF was the first to be listed in China. Within one minute of opening in the morning, the turnover exceeded 200 million yuan, and that in the morning exceeded 1.4 billion yuan. By the end of the afternoon, the trading volume of Kechuang 50 ETF reached 2.119 billion yuan, ranking the first among equity ETFs in the two cities, accounting for 46.3% of the total transaction volume of the four ETFs in a single day. The net inflow of the whole day exceeded 1.7 billion yuan.

It is worth mentioning that Huaxia Kechuang 50 ETF obtained nearly 700000 subscription holders when it first raised, which is the largest number of holders among the four products, and it is also the fund with the largest number of holders in equity ETFs that have been listed and traded at present.

On November 16, the Kechuang 50 index rose 5.8% at 1520.27 on November 16, then rose 0.70% to 1446.95.

Correspondingly, the four Kechuang 50etfs tracking the Kechuang 50 index have also experienced high opening and low going, with large fluctuations throughout the day.

On the same day, ETF rose 504.4% in the first batch of ETF, while kehuachuang ETF rose 504.4% at the beginning of the day.

At the end of the day, four Kechuang 50etfs, only Huaxia Kechuang 50ETF, increased by 1.81%, exceeding 0.70% of the Kechuang 50 index, with a premium of 1.03%. The other three Kechuang 50ETF funds all increased by 0.69%, which was basically the same as that of Kechuang 50 index on the same day, without any premium or discount.

"The four funds passively track the Kechuang 50 index, and the rise and fall amplitude basically converge with the index. In the early trading, the Kechuang 50 Index surged higher and fell back, and the four funds also followed the performance." Zhang Ting said.

For the large fluctuations of the first day of the four Kechuang 50etfs, Cheng Xi explained: "because the opening is related to the degree of capital participation and volatility, if no one is involved in the opening, you can make a 10% increase with a small amount of capital. The up and down range of the science and technology innovation board is 20%, which is not of special significance to our trading. What is more important is the tracking range of transactions and prices in the continuous trading of the market

According to people, the volatility of Kechuang 50 is 1.5 times of that of gem index. However, the volatility of Kechuang 50 fluctuates greatly in the short term. For some investors who like trading, there is a lot of room for doing short-term volatility trading.

Industry insiders believe that in general, Kechuang 50ETF is a product suitable for both long-term and long-term development, which can be held for a long time to obtain the long-term growth income of science and technology innovation board enterprises, and can also obtain short-term income through short-term volatility trading. For investors, Kechuang 50ETF is attractive in terms of investment methods and playing methods.

However, Cheng Xi also reminded: "there is a difference between intraday price fluctuations and the rise and fall of net worth. Of course, there is also a link between the two. Intraday prices are more driven by fund enthusiasm."

"This problem is divided into two levels: the first level, the rise and fall rate is related to the enthusiasm in the day, and the price fluctuation revolves around the fluctuation of the fund value. If you look at the market software carefully, you will find that there are two lines in the real-time market of ETF, one is the price line, the other is iopv, iopv is the value of the fund, and the price fluctuates around the value. Many market makers and liquidity providers will deviate from it To carry out arbitrage through redemption will eventually return the price to value. In the second layer, the rise and fall rates of the four Kechuang 50ETF funds are different. In fact, they are related to the opening price of each product, or to the opening price of the same day. These are all technical and do not affect the rise or fall of the actual net value of the index. " Cheng Xi said.

"In terms of selection, investors should choose those closely tracking the index. In this regard, there is little difference between the four Kechuang 50etfs. In addition, it is recommended to choose more stable companies and products with better liquidity. " Cheng Xi suggested.

In terms of turnover rate, on the first day of listing, Huaxia Kechuang 50ETF reached 40.63%, while that of e fund, Huatai Bairui and ICBC Credit Suisse were 19.23%, 16.22% and 9.74%, respectively.

Fixed investment logic

However, when Kechuang 50 ETF was listed on the first day and capital trading was active, some retail investors said that they were afraid that the valuation of Kechuang 50 was too high and they did not dare to participate.

In response, Cheng Xi said: "the so-called valuation is too high. To some extent, it is an evaluation system with profit as the core. For the science and technology innovation board, profit is an important consideration, but it is no longer the core evaluation index. The most important thing is the track and core competitiveness."

In view of the large fluctuation of the Kechuang 50 index, the fund manager of Huaxia Kechuang 50ETF was honored to suggest that investors invest in Kechuang 50 in batches or fixed investment. The essence is to obtain chips at a relatively average cost when the market fluctuates. Once the market starts to rebound, they can get profits. The optimization of investment mode can smooth the fluctuation to a certain extent, and at the same time, it will not miss the long-term investment opportunities of Kechuang 50 index.

Fund managers explained in detail how to invest in Kechuang 50ETF.

"Considering the matching degree of the performance growth and the index's rise and fall, if we expect the performance growth of Kechuang 50 enterprises, or profit growth rate, to reach 30% -- which should be a high probability event, that is to say, from the beginning of the year to now, if we don't consider the valuation fluctuation, the profit growth rate can be reflected in it, and the Kechuang 50 index can at least rise to 1300, Therefore, if the index falls below 1300, I think we can make a bold investment; if it is between 1300 and 1500 points, I think we can carry out standard allocation when considering the fluctuation of valuation; if the index rises to 1500-1700, we can carry out low allocation; if the index goes above 1700, we can temporarily stop operation, because this year's high point is 1700 points. If the enterprise performance growth is not 30%, but 50%, the corresponding index space can be increased. " One fund manager said.

Cheng Xi believes that the cost performance ratio of fixed investment of Kechuang 50ETF in the current Kechuang 50 index position is good.

Zhang Ting believes that since the middle of July 2020, the science and technology innovation board 50 has dropped from a high level, with a maximum withdrawal of more than 25%, showing a volatile situation. "If investors choose the Kechuang 50 index fund at present, it is recommended to hold them for a long time and for a short time. The expected rate of return in the coming year will be lower than that of this year, and the volatility will also be large."

So, in the face of four Kechuang 50ETF funds, how to choose?

As of November 13 (the trading day before listing), after conversion, the unit net values of four Kechuang 50etfs, Huaxia Kechuang 50ETF, yifangda Kechuang board 50ETF, Huatai Bairui Kechuang board 50ETF and ICBC Credit Suisse Kechuang 50ETF were 1.4393 yuan, 1.4392 yuan, 1.4423 yuan and 1.4388 yuan respectively.

During the same period, as of November 13, nearly one and a half months since its establishment on September 28, the net fund values of e fund, Huatai Perry, ICBC Credit Suisse and Huaxia Fund were 1.0083 yuan, 1.0071 yuan, 1.0026 yuan and 0.9996 yuan respectively. Among them, the cumulative unit net value of e-fonda Kechuang board 50ETF is ahead, while the net value of Huaxia Kechuang 50ETF is slightly less than 1 yuan.

Cheng Xi told reporters, from the current point of view, the selection of ETF index funds, mainly consider tracking error and thickening income two factors.

"The evaluation principles of index funds are quite different from those of other funds. For example, as an index fund manager, what I assess is not how much the 50 ETF of the science and technology innovation board has increased this year, but whether my science and technology innovation board 50ETF and the index are closely tracked." Cheng Xi said.

"The situation of index funds in China is a little bit special, because China has many opportunities to make new and block trading. By doing new and block trading, the returns can be increased. On the basis of not expanding the tracking error, more excess returns can be obtained for customers. This is also good." Cheng Xi said.

So, will the scale and performance of the next four Kechuang 50etfs be differentiated?

"Today, three of the four funds had basically the same rise and fall, which was 0.69%. Only Huaxia's fund rose by 1.81%, and the scientific innovation 50ETF of Huaxia was also the largest trading volume. In fact, the ETF on the one hand is affected by the rise and fall of the index, on the other hand, it will also be affected by the supply and demand. However, based on the law of one price, the differentiation of these four funds is difficult to sustain for a long time, and will gradually tend to be consistent in the future. The follow-up performance rate may not be too differentiated, but the scale may gradually shift to funds with better liquidity. " Zhang Ting said.

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