STCN｜Collective Approval of the SSE 180 ETF Leads to Expansion of the SSE Benchmarking Broad-based Index ETF

Translated from STCN

According to STCN, on November 29, the SSE 180 ETFs recently declared by 6 fund companies including Huatai-Pinebridge, China Southern Asset Management, Penghua Fund, Ping An Fund, Tianhong Asset, and CIB Fund Management were officially approved, marking a major expansion of the SSE 180 ETF. On the same day, E Fund started to issue the SSE 180 ETF. The SSE 180 ETF declared by Yinhua Fund has also been approved previously.

After the optimization of the SSE 180 Index plan, the index positioning is clearer, with improvements in representativeness, investability, and stability. It better reflects the overall performance of the core listed securities on the SSE.

Specifically, firstly, it shows the stronger representation of the SSE market, with index sample coverage of market capitalization, revenue, dividends, and net profit reaching around 61%, 63%, 76%, and 82% respectively, marking increases of 2.4%, 1.4%, 4.1%, and 4.9% compared to pre-revision levels. Secondly, it better reflects the development direction of new quality productive forces, with weights in "new economy" sectors such as information technology, healthcare, and industry increasing by 9.5%, and weights on the SSE STAR Market rising by 1.8%. Thirdly, the index's industry balance rules are more rational, with sample weight industry distribution closely aligned with the overall industry characteristics of the SSE, better reflecting changes in the capital market structure and industrial transformation. Fourthly, index returns and stability have further improved, with an approximately 1% increase in annualized returns over the past decade, a 0.1% decrease in annualized volatility, and a decrease in sample turnover rate to around 8% over the past three years.

The above information is provided for reference purposes only and does not constitute investment advice.