Ho hum...
This is not a simple subject, and you are trying to make it such - then adding "so will this be good from performance point of view".... 2 different sides of the coin
Real life :
DFSHDC40 is an excellent general purpose randomiser [but everything depends on your keys]
You can amend your parms to accommodate 500000 records [assume you mean records and not segments ] on the basis of 1 rap per record and given N raps/block arrive at an RAA [and DBDS size]
You can then allocate or [over allocate] the DBDS
It will load [if the dataset can grow ...overflow]
It will return records [just like SQL that is syntactically correct]....
...will it perform ? .... It "depends" - but we have done that above
If you are really interested in this sort of thing talk to your DBA [or do some more reading]
/OUT