Since April, in the continuous adjustment of the market, investors have continued to buy more and more through ETF funds. Statistics show that as of April 18, the net inflow of ETF has exceeded 23 billion yuan since April, of which the steady growth and TMT sectors have attracted the most attention.
Industry insiders believe that ETF funds have the attribute of tools. Most of the varieties with more net inflow have a large decline this month, but their attraction to market funds is not low.
Kechuang 50ETF shares increased significantly
Although the average decline of equity ETF funds since April has exceeded 3.7%, market funds are being injected against the trend. According to the data, as of April 18, the share of equity ETF funds has increased by 19.286 billion in April, and a total of 23.3 billion yuan has been admitted.
Buffett once wrote in a letter to shareholders: “the most common reason for the sluggish stock price is pessimism, which sometimes pervades the whole market and sometimes is limited to certain industries or companies. We expect to invest in this environment, not because we naturally like pessimism, but because pessimism can bring better prices.” At present, ETF funds known as “smart money” also choose to attack when they are pessimistic.
Since April, a total of four ETF fund shares have increased by more than 1 billion, with the largest increment of 50 ETF on Huaxia Shanghai Securities technology innovation board, reaching 2.26 billion. As of April 18, the ETF has received a net capital inflow of 2.38 billion yuan. Similarly, the shares of other science and innovation funds have also achieved rapid growth. For example, the share of e fund in the 50ETF range of Shanghai Stock Exchange science and innovation board has also increased by more than 410 million. However, these two funds have fallen by more than 4% in the past 10 months.
Data show that the Shanghai Science and innovation board 50 component index has fallen nearly 8% since April. In the intraday trading on April 15, the index even hit a record low, attracting a large number of funds to take advantage of the low-level layout of ETF products.
Industry insiders believe that scientific and technological innovation has become a new engine for national and local governments to achieve high-quality development, and the good performance of science and innovation board company also highlights the high growth characteristics of the sector, so it has been favored by funds in the process of decline.
Coincidentally, in addition to science and innovation ETFs, other broad-based index ETFs are also favored by funds. Since April, the shares of Huaxia SSE 50ETF and Huaan gem 50ETF have also increased by 1.5 billion and 700million respectively.
HSBC Jinxin Fund believes that after the adjustment, the level of A-share risk premium has rebounded significantly, the market valuation has reached a relatively low level in history, and the investment value has increased significantly compared with the beginning of the year. Subsequently, with the elimination or landing of external risk factors, the economy gradually stabilized and rebounded, and the market liquidity returned to normal, the market valuation is expected to gradually return to the center.
“smart money” focuses on two tracks
The investment trend of ETF is often regarded as the wind vane of institutional funds. From the perspective of using real gold and silver to buy industry themed ETF funds since April, the “steady growth” and TMT sectors received high attention from the market in April.
Among them, the southern China Securities all index real estate ETF with the investment characteristics of “stable growth” temporarily ranked the first in the growth of ETF share in April with a share of 1.25 billion. The share growth of GF China Securities infrastructure project ETF and Cathay Pacific China Securities steel ETF also reached 830 million and 770 million respectively.
Similarly, there are some semiconductor ETFs with large share growth, such as Huaxia Guozheng semiconductor chip ETF and guolian’an China Securities all index semiconductor ETF. Their share growth since April has been 590 million and 430 million respectively. In the field of communication and media subordinate to TMT, there have also been some varieties with large share growth, such as GF China Securities media ETF and Huaxia China Securities 5g communication theme ETF. Since April, the share has also increased by more than 400 million and 300 million respectively.
A number of fund companies said that in the future, they will take into account the two themes of steady growth and high prosperity, and use balanced allocation to deal with market fluctuations. Wells Fargo Fund believes that under the background of increasing downward pressure on the economy, it is more necessary to make efforts in relevant fields of steady growth, and the most direct steady growth is real estate and infrastructure investment. Therefore, relevant construction, real estate, building materials and other industries are expected to benefit significantly. At the same time, the early growth sector correction and valuation compression, but the results disclosed in the first quarter report and the forecast will bring rebound opportunities for the growth sector.
Golden Eagle Fund also said that the industry configuration will maintain a balanced configuration. In terms of “steady growth” investment, under the epidemic and external economic pressure, the steady growth policy will still work. Before the follow-up policies are implemented and effective, they can participate in bargain hunting. In addition to real estate and banks, the main line of steady growth will pay attention to the post cycle varieties of the real estate chain on the left.
As for the influx of funds into TMT ETFs in April, Chen Ping, manager of HSBC Jinxin fund, believes that with the market adjustment, the share price of science and technology growth stocks has fallen to a very attractive position in the past decade. There have been only three times in 10 years that the risk compensation has been at such a high level, and the other two were at the end of 2012 and 2018 respectively. Of course, in terms of time rhythm, science and technology growth stocks may also need to wait for factors such as China’s economic stabilization, the decline of the Fed’s expectation of raising interest rates, and the recovery of market risk appetite.
