Index fund hidden mystery passive products passive income is not the higher the better

category:Finance
 Index fund hidden mystery passive products passive income is not the higher the better


The reporter combed the performance of index funds and found that from the perspective of simple passive index funds, the Shanghai Shenzhen 300 index fund, which has been established for more than one year, has a yield of 18% - 41% in the past year. In addition to the fund tracking the CSI 300 index, the fund tracking the CSI 500 index and other broad base index funds, there are similar situations.

When the index is enhanced, the gap between the returns of the fund is larger. For example, the returns of different index enhancement funds tracking the CSI 300 index range from 18% to more than 70% in the past year. As of September 30, the net share growth rate of Furong CSI 300 enhanced a reached 71.29% in the past year, while the growth rate of net share value of enhanced a share of similar western Lidi CSI 300 index was 49.48%, while that of a certain CSI 300 index with lower yield was only 18.11%.

Many factors cause differences

Tracking the same index, why are yields so different? In fact, the index fund also has a way, from the name suffix of the fund, you can see the difference. All kinds of funds have different names and represent different types. Common index funds include general index funds, ETF funds, index linked funds, enhanced index funds, etc.

For example, the Shanghai Stock Exchange 50 general index fund invests all the constituent stocks of the Shanghai Stock Exchange 50 index, which is a passive index fund. When the Shanghai Stock Exchange 50 index is strengthened, the fund managers active operation is added, which may increase or decrease the income. The ability of the fund manager has a greater impact on the income of the enhanced part.

But the same for the pure copy index fund, or the same for the index enhancement fund, the head and tail yield gap is not small. In response, a public index fund manager said that there are multiple reasons for the difference in the return rate of index funds: on the one hand, different fund companies or fund managers may have some differences in tracking technology. On the other hand, for index enhanced funds, different enhancement strategies or quantitative enhancement models will have different performance in different market environments. Each model has different allocation weights for different industries or different component stocks, which will lead to a certain degree of deviation from the index, and the space for fund managers to actively operate under different deviation degrees is also different.

As like as two peas, Liu Yiqian, general manager of the Shanghai Securities Fund Evaluation Research Center, said that even if the index is exactly the same, the yield will be different if it is affected by various factors. First of all, due to the great volatility of the capital market, different time and pace of building positions will have an impact; secondly, the size of funds will lead to significant differences in the impact cost and adjustment cost; finally, the strategies for each fund to strengthen are different, especially the different allocation weights in the industry and individual stocks, which have a certain impact on the enhancement effect.

The higher the yield, the better

For the enhanced index fund, the space of fund managers active operation is different under different deviation degrees. Is it a reasonable phenomenon that the return gap of index funds is so large based on active operation? When the active ingredients are over added, can index funds be called passive products?

Liu Yiqian believes that index funds can not only be based on the theory of yield. When evaluating index funds, tracking error rate and information ratio are the most effective indicators. First of all, look at the tracking index error, including performance deviation and actual standard deviation. Second, if it is to enhance the index, it also depends on the information ratio, that is, to measure the relationship between return and risk.

So, how do ordinary investors choose index funds? Liu Yiqian suggested that the investment value of the index, the experience of fund companies in operating the index and the scale of index funds should be considered comprehensively. If it is an enhanced index fund, it also depends on the enhancement strategy. Some index funds use quantitative enhancement method, while others are active enhancement. Investors can choose funds that match their own ideas.

Source: Ren Hui, editor in charge of China Securities Journal_ NBJ9607