If you want to do a good job in theme index fund, you must first have a full understanding of theme index. Today, let's talk about how the theme index screens constituent stocks.
Different index compiling institutions and different indexes have certain differences in compiling methods. However, the selection of theme index constituent stocks has a certain degree of * * *, and most of them are screened in the following ways.
First, how much profit the listed companies represented by individual stocks get in a given field.
For a simple example, the stock selection standard for consumption theme may be based on the proportion of listed companies' profits to total consumption profits, and the stock selection standard for new energy theme may mainly be based on the profit ratio of solar energy and wind energy.
This method is the most commonly used method to screen constituent stocks.
The core of this screening method lies in the past performance and main business of listed companies, which may not be suitable for rapidly developing and changing fields, such as science and technology industry.
The second is to use quantitative or qualitative indicators to measure.
Through the analysis of quantitative or qualitative indicators in the industry or related fields, it is finally decided whether to include a stock in the constituent stocks of the theme index.
Through the measurement of qualitative indicators, we can screen the constituent stocks that are more in line with the theme. Of course, because it is manual measurement, it may be influenced by some subjective factors, and the transparency will be relatively low.
Third, use big data technology to collect information and screen constituent stocks.
This method is a cutting-edge screening method. Some index or data providers will use big data technology to collect information from some cutting-edge academic papers or patents, thus screening out constituent stocks.
These screened information may represent the development direction of an enterprise in a specific field, so it is forward-looking and uncertain to screen constituent stocks by this method.
This method lacks transparency in the operation process, and it is not particularly conducive to investors' tracking.
The three methods mentioned above are the most commonly used methods to screen the constituent stocks of the global theme index. Knowing the selection method of theme index stocks is equivalent to knowing the investment strategy of theme funds, which is very helpful for us to invest in theme index funds.