The institution claims that the technology sector had a higher success rate in May and June, and suggests investing in the A500ETF fund to layout new high-quality leading companies in productivity.
On May 16th, the A500ETF fund was actively traded, with a turnover of 3 billion yuan as of the time of writing, ranking first in liquidity among 32 similar products. In terms of fund flows, there was a net inflow of 270 million yuan in the past 5 days and a net inflow of 550 million yuan in the past 10 days. Industrial rotation intensity has been at a historical high, and it is expected to converge in the near future, possibly giving rise to a new structural theme in the market. Looking at the style performance calendar effect of the past ten years, the technology sector tends to perform relatively well in May and June. In the current environment, the investment value of A-shares presents structural opportunities. With the market recovery approaching the level of April 2nd, the profitability and shareholder return mechanisms of some consumer industries are becoming apparent, especially in industries with stable business models such as home appliances, automobiles, and food and beverage. This "long-term mechanism" of shareholder returns makes traditional consumer assets more attractive for investment. China's Q1 domestic demand is recovering well, with retail sales growth higher than the same period last year, and accelerated transformation in the manufacturing industry structure, providing fundamental support for A-shares. Investors can consider investing in the A500ETF fund and its related funds.
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