Stock Market "heatstroke" four passive investment preferred ETF

If it is difficult to grasp the structural opportunities in the run-up to the market, choose passive investment.　　In many index funds, ETF is a relatively better choice, whether from tracking errors, transaction costs and convenience level, ETFs are the best. Article/Sinorama correspondent Feng Qing preferred ETF in a trend-upward market, index funds tend to excel. In index funds, ETFs are often the best performing.　　For investors who have difficulty grasping stocks, the best way to hold up the market is passive investment. This year, as the stock market bottomed out, the fund has performed well and the index fund has been the biggest winner.　　According to Morningstar data, as of July 10, the average return of 202 active equity funds has been 71.7%, and 18 index funds have averaged a 78.36% return this year.　　It is noteworthy that among the 18 index funds, the average return of 5 ETF funds, represented by the Yifangda 100ETF and Huaan Shanghai 180ETF, amounted to 78.8% and became the highest-class fund. ETFs are essentially the same as general index funds, to track a particular benchmark index as an investment target, to use a basket of shares for purchase and redemption, and for ordinary investors to participate in the two-tier market.　　Taking Huaan Shanghai 180ETF Fund as an example, the fund takes the Shanghai 180 index as its investment target and adopts the index tracking method of total replication to minimize the tracking deviation and tracking error. As of July 10, 5 ETFs, the highest rate of return is YIFANGDA 100, the yield is 93.22%, followed by Huaan Shanghai 180ETF, the return of 82.59%, followed by China Shanghai 50ETF, AIA Huatai Dividend ETF and SME, The yield was 81.29%, 76.2% and 58.58%, respectively.　　It is clear that, on average, ETFs have gone far beyond active open-end funds and have become the leaders of index funds. ETF fund performance in the rising market, stronger than the general index funds and active stock funds, the main reason is two. On the one hand, ETF is the lowest rate in the index funds of a class of products, its annual management fee of 0.5%, custodian fees 0.1%, the total of 0.6% of the annual holding costs, only equivalent to the ordinary Open equity fund 1/3.　　After long-term investment, the cost difference of compound interest is very considerable. On the other hand, ETF tracking indices are tighter and deviate less than general index funds. This is mainly because the purchase and redemption of ETFs is carried out in a basket of stocks, so there is no need to reserve a portion of cash to satisfy redemption, as in the case of general index funds, or to increase the number of tracking errors when faced with large requisitions.　　Taking Huaan Shanghai 180ETF Fund as an example, the absolute value of the daily tracking deviation is not more than 0.2%, the annual tracking error is not more than 2%, in order to achieve the effective tracking of the Shanghai 180 Index. Two types of investmentStrategy in the current market conditions, if the value of investment in the idea of stock selection, it may be difficult to be relatively high. On the other hand, the market is likely to rise further, driven by liquidity and good expectations.　　At this point, a simpler way of adapting to trends is to select index funds, especially those that trade more conveniently. An investment strategy is to use the Index fund as the trading tool of the band. Investors can be based on the judgment of the periodic market, flexible operation, line shoplifting low sell, this can help circumvent the risk of short-term adjustment. Of course, a better strategy is to be a phased strategic investment tool. In a market where long-term trends are bullish, exponential investment tends to outperform ordinary active investment funds.　　In a good macroeconomic cycle, it is a good strategy to hold index funds in the medium to long term. On the specific species, the difference between the indexed investment products is mainly the index of the tracked indices. such as Shanghai 50ETF, tracking the Shanghai 50 Index, the index of the sample stocks mainly concentrated in the broad-blue chips, since the June blue-chip market after the start of the index performance is relatively good, and the previous 50 is the index of the poor performance. From a longer-term perspective, the composition of the Shanghai 300, Shanghai 180 and Shenzhen 100 Index is a good choice because of its broad coverage, higher market representation, and a significantly better long-term performance than the Shanghai 50 Index.　　These indices have a corresponding ETF fund, which is worth focusing on. For more wonderful financial articles, please login to the first financial network (www.Amoney.com.cn) statement: This copyright for the first exclusive financial management, if necessary reprint, please contact us. Email to editor@amoney.com.cn or call 021-64830133