While the A-share market is still fiercely battling around the 4000-point mark, this ETF, with its significant excess returns, has already led a group of investors to reach the 5100-point level ahead of schedule.
As of the end of October (with the broad market at 3954.79 points), the SSE Composite Index ETF (510760) has achieved an excess return of 30.05% since its listing (2020/9/9). This is equivalent to having already reached 5143 points if held from the listing date until now.
Why has the SSE Composite Index ETF (510760) achieved such outstanding results?
1. Significant Index Enhancement: Over 30% Excess Return Since Listing.
The SSE Composite Index ETF (510760) tracks the SSE Composite Index and employs a sampling replication strategy to enhance returns while controlling tracking error. Data shows that the ETF has achieved excess returns across various periods. As of October 31, 2025, since its listing, the ETF's secondary market price has increased by 49.30%, compared to a 19.25% rise in the SSE Composite Index during the same period, resulting in an excess return of 30.05%.
2. Index Dividend Yield Exceeds 2%, Bolstering the Return Foundation.
The SSE Composite Index uses a total market capitalization weighting method, has a high proportion of "China-concept" stocks, and is overweight upstream resources. As of the end of October, its dividend yield exceeds 2%, thereby strengthening the foundation for returns.
Since the fund's performance benchmark is the price return index, the total return index actually includes the dividend income from the stocks. When the constituent companies of the index distribute dividends, those dividends contribute to the fund's returns. Therefore, the fund's returns naturally include an additional component from dividend income compared to the price return benchmark index, becoming one of the important sources of excess returns.
A-Shares Hit Historical Highs: Is It Still Time to Invest?
Looking ahead, we believe a slow bull market for A-shares is anticipated. Sustained pro-growth policies, active market sentiment with robust trading, continued accommodative monetary policy, and eased China-US trade tensions are among the factors continuously catalyzing the A-share market. In the short term, despite the market showing divergence due to the impact of quarterly reports after hitting a decade high, this does not affect the positive long-term trend. At the operational level, a strategy of active allocation ("don't predict, just follow") and patiently waiting for a breakout might be a preferable choice.
The SSE Composite Index centrally covers China's high-quality assets and is an important channel for going long on Chinese assets. The excess return of the SSE Composite Index ETF (510760) compared to the CSI 300 Index is also quite pronounced. According to Wind data, as of October 31, 2025, since its listing, the SSE Composite Index ETF's secondary market price has increased by 49.30%, resulting in an excess return of over 30% against the SSE Composite Index. Compared to the CSI 300 Index over the same period, the excess return is even more significant, reaching 50.45%.
Investors concerned that their returns might not keep pace with the broad market can adopt the "if you can't beat them, join them" approach by using the SSE Composite Index ETF (510760) to easily keep up with the market with a single click. In terms of fees, the SSE Composite Index ETF is currently one of the most cost-effective tools for broad market investment in the entire market, with a management fee as low as 0.15% per year and a custody fee as low as 0.05% per year (annualized).
Risk Disclosure:
Data source: Wind. The SSE Composite Index ETF's increase refers to the secondary market price increase. Past performance is for reference only and does not represent investment advice. Data period: 2020/9/9 - 2025/10/31. The statement "puts you at 5100 points ahead of time" refers to the scenario where, holding the SSE Composite Index ETF during the period from 2020/9/9 to 2025/10/31, resulted in a 30.05% excess return compared to the SSE Composite Index. Considering the SSE Composite Index closing price of 3954.79 points on 2025/10/31, a 30.05% excess return on top of this equates to 5143 points. The operation history of funds in China is relatively short and may not reflect all stages of stock market development. Past performance of the index/fund is for reference only and is not indicative of future performance. This fund is an equity fund, and its expected risk and return levels are theoretically higher than those of hybrid funds, bond funds, and money market funds. This fund is an index fund tracking the SSE Composite Index, and its risk-return characteristics are similar to those of the market portfolio represented by the underlying index. Before making investment decisions, investors should carefully read the fund's "Prospectus" and "Fund Contract," pay attention to relevant regulations on investor suitability management, complete a risk assessment in advance, and purchase fund products with a risk rating matching their own risk tolerance based on this assessment. Market views are for reference only and do not constitute investment advice. Funds carry risks, and investment requires caution.
