Core Insights - The article discusses the shift in investor consensus from "expected returns and star products" to "multi-asset and multi-strategy" approaches in the current uncertain market environment [4] - The A500 ETF and its connected funds are highlighted as key tools for this asset allocation transformation, providing a stable investment strategy amidst market volatility [5][6] Investment Strategies - The concept of "balance between stocks and bonds" is emphasized, rooted in Benjamin Graham's investment philosophy, advocating for a balanced allocation of equity and fixed-income assets [7][8] - A practical implementation of a 50-50 stock-bond strategy using the CSI A500 index and the CSI All Bond Index has shown significant historical performance, achieving a total return of 527.6% over the past two decades [13][15] - The strategy's annualized return of 9.2% outperformed a fully invested A500 strategy, demonstrating the effectiveness of dynamic rebalancing to mitigate risks and enhance returns [15][16] Performance Analysis - Various stock-bond allocation combinations were analyzed, revealing that a 50% A500 and 50% bond allocation yielded the highest total return and a manageable level of risk [16] - The article presents a detailed performance table showing the total returns, annualized returns, and minimum annual returns for different stock-bond allocation ratios, highlighting the benefits of a balanced approach [16] Core-Satellite Strategy - The core-satellite investment strategy is introduced as a method to simplify asset allocation, where core assets (70-80%) provide stability and satellite assets (20-30%) seek higher returns [17][19] - The CSI A500 index is positioned as a preferred choice for core assets due to its balanced representation of the market and long-term performance [19][21] Practical Application - For investors seeking to balance risk and return, a suggested allocation of 70% core assets in a combination of CSI A500 and CSI All Bond Index, with 30% in satellite assets, is recommended [22] - The article emphasizes the importance of tailoring asset allocation to individual risk tolerance and investment goals, rather than strictly adhering to historical ratios [17][22] Conclusion - The A500 ETF and its associated funds are positioned as effective tools for investors to build resilient portfolios that can adapt to market changes, reducing anxiety over daily market fluctuations [36][38] - The article concludes that constructing a well-balanced investment portfolio is crucial for long-term success, rather than attempting to predict short-term market movements [35]