Core Viewpoint - The article emphasizes the performance and resilience of the CSI A500 Index during the current bull market, highlighting its ability to generate significant excess returns compared to its peers, particularly the CSI 300 Index [4][15][16]. Performance Analysis - The CSI A500 Index has shown a remarkable performance, achieving an increase of approximately 20% this year, outperforming 21 out of 31 industry sectors [10]. - Historical data indicates that during previous bull markets, the CSI A500 Index recorded gains of 155.36% from July 2014 to June 2015 and 101.06% from January 2019 to February 2021, demonstrating its capacity to keep pace with market trends [11]. Comparison with CSI 300 - In the current year, the CSI A500 has outperformed the CSI 300 by nearly 3 percentage points, showcasing its competitive edge [16]. - Over a five-year period, the CSI A500 has consistently outperformed the CSI 300, indicating its robustness in various market conditions [17]. Index Composition and Strategy - The CSI A500 Index employs a balanced stock selection method, resulting in a lower allocation to traditional sectors like finance and consumer goods, while favoring emerging sectors such as technology and healthcare [19]. - The median market capitalization of the CSI A500's constituent stocks is below 100 billion, positioning it as a mid-to-large cap index, which allows it to capture a broader market representation [20]. Fund Flows and Investor Sentiment - Since the launch of the CSI A500 ETF, it has attracted significant capital inflows, totaling 210.5 billion, while the CSI 300 ETF experienced outflows of 66.9 billion during the same period [20]. - The CSI A500 ETF has become the second-largest tracked index in the A-share market, reflecting strong institutional and individual investor interest [22]. Investment Strategy - The article suggests that reallocating investments from the CSI 300 to the CSI A500 may provide a different investment experience, potentially enhancing returns [23]. - A multi-asset strategy based on risk parity has shown promising results, with the CSI A500 contributing to a cumulative return of 155.32% since 2014, indicating its effectiveness in diversified portfolios [25]. Pension Fund Considerations - The CSI A500 ETF is included in the personal pension fund directory, offering unique advantages such as fee discounts and tax benefits, making it an attractive option for long-term investors [26].

Group 1 - The A-share market has reached a historic moment with the Shanghai Composite Index closing at 4016.33 points, marking a significant psychological milestone for investors [2] - Investors are faced with the challenge of balancing risks and opportunities as the index rises, seeking investment tools that can achieve long-term stable growth [2] - The current strong market performance is driven by a combination of policy, fundamental, and capital factors [4] Group 2 - Policy support includes a clear economic focus from the 20th Central Committee's Fourth Plenary Session, which sets a positive tone for the 14th Five-Year Plan, with an expected market space of approximately 10 trillion yuan over the next five years [4] - The external environment has improved, highlighted by a substantial framework agreement reached between the US and China, alleviating external pressures on the market [4] - Economic recovery is solid, with the manufacturing PMI showing continued improvement, supporting corporate profit growth and a healthy capital market [4][5] Group 3 - The A500 Index is positioned as a core tool for capturing structural opportunities, with a balanced selection of 500 leading companies across various industries [8] - The index's design allows it to capture growth opportunities across different sectors, regardless of market trends, thus mitigating risks associated with sector volatility [11] - Notably, 36% of the A500 Index's constituents are "specialized and innovative" enterprises aligned with strategic emerging sectors, making it a fitting investment for future growth [12] Group 4 - The A500 Index exhibits a valuation advantage, with a price-to-earnings ratio of 17.11, significantly lower than major global indices, providing a safety margin for investors [14] - The index incorporates an ESG negative screening mechanism, enhancing the overall quality of its constituents and aligning with global sustainable investment trends [16] - The A500 ETF from Southern Fund has gained popularity, with assets surpassing 21.1 billion yuan and a daily average trading volume of 3.18 billion yuan, indicating strong liquidity [17] Group 5 - The A500 ETF serves as a strategic allocation tool, allowing investors to participate in China's economic growth while managing risks through diversification [19] - The ETF's performance over the past five years has shown an average positive deviation of 16.03%, reflecting its ability to deliver excess returns while maintaining tracking accuracy [18] - For investors unable to trade ETFs directly, the A500 ETF connection fund offers a convenient option, especially for personal pension investments, which come with unique advantages [18]

Core Insights - The article highlights the performance of the CSI A500 Index, which has shown both expected stability and unexpected strengths over the past year [4][6][8] - The index has outperformed the CSI 300 Index by approximately 4 percentage points, with a cumulative increase of 45.08% since its launch [8][22] - The article emphasizes the index's ability to capture new productivity and industry upgrades, making it a valuable asset in investment portfolios [11][21] Performance Evaluation - The CSI A500 Index has demonstrated a balanced performance amidst market volatility, successfully reflecting its balanced attributes during style rotations [6][7] - The index's performance is attributed to key contributors from high-end manufacturing sectors, which are not covered by the CSI 300 [9][11] - The index has maintained a lower annualized volatility and maximum drawdown compared to the CSI 300 and small-cap indices, indicating robust risk management [16][18] Market Dynamics - Institutional investors have shown increased interest in the CSI A500 ETF, with a 25.11% rise in holdings, reaching over 93% [18][20] - The shift in insurance capital towards the CSI A500 ETF, with a more than 50% increase in holdings, signals a growing recognition of the index as a core asset in long-term investment strategies [20][21] Growth and Global Recognition - The total scale of ETFs tracking the CSI A500 Index reached 183.495 billion, indicating significant market trust for a newly launched index [22][25] - The launch of a CSI A500 ETF by DWS in Europe marks a notable step in the global recognition of A-share core assets [28] Investment Strategies - The article discusses the "core + satellite" strategy, positioning the CSI A500 as a stable core asset in investment portfolios [31] - The "barbell strategy" is also highlighted, where the CSI A500's lower correlation with various asset classes enhances diversification and overall risk-return profile [32] - The index is deemed suitable for long-term funds due to its stable profitability and strong industry representation [33]