Market volatility is increasing. Pay attention to core broad-based funds such as A500 ETF (512050).

March 20, the A-share market rose sharply early in the session, then pulled back. The A500 ETF fund (512050) turned from gains to losses; as of 14:46, it was down 0.334%. Among the holdings, stocks such as Ginlong Technologies, Zhushi Micro, Anker Innovations, Penghui Energy, Jieshi Weichuang, and others strengthened against the trend.

Amid recent geopolitical disruptions, volatility in the domestic market has increased and risk appetite has declined. At the same time, China’s domestic economy has delivered an “early positive start,” and Citi China Economic Surprise Index hit the second-highest level since 2010. In its view, from January to February, multiple domestic and external economic data came in above market expectations: export growth surged sharply, fixed-asset investment growth unexpectedly turned positive, and the potential of services consumption continued to be released. With the repair of domestic and external demand moving in sync, the Citi China Economic Surprise Index—measuring the degree of economic outperformance versus expectations—rose significantly to 107, the second-high-highest level since 2010, second only to the post-epidemic normalization phase in the first quarter of 2023.

It also pointed out that, according to the seasonal规律 of economic expectations, March–April and July–October are also periods when market “macro feel” tends to be at its best and optimistic expectations for cyclical-growth sectors are most likely to be fueled, providing a favorable time window for “buying the repricing trade.”

The A500 ETF fund (512050) helps investors build a one-click allocation to core A-share assets and capture the improvement dividend of A-share leading assets. This ETF has key advantages including a low fee rate (total expense ratio of only 0.2%), good liquidity (its average daily trading value over the past year ranks first among its peers), and a large scale (more than RMB 30 billion). It tracks the CSI A500 Index and uses a dual strategy of industry-balanced allocation and leading-stock selection: it covers all 35 sub-industries under CSI All Sectors A, integrating value and growth characteristics, and is not afraid of style rotation. Compared with the CSI 300, it is overweight in emerging industries such as the AI industry chain, biopharmaceuticals, new-energy power equipment, and defense and military industries, which are new quality productive forces, giving it a natural “dumbbell” investment attribute.

Investors may consider the related products: A500 ETF fund (512050) (off-exchange connection: Class A: 022430; Class C: 022431; Class Y: 022979), and the A500 enhanced ETF fund (512370).

Daily Economic News