Under the guidance of the full implementation of the registration system to generate the demand for the layout of small and medium-cap broad-based indexes, the inflow of state-owned funds and supervision, ETF products have bloomed and their share has steadily risen. Recently, the total share of ETFs in the whole market has exceeded the 2 trillion mark, hitting a record high.
In August this year, the total size of ETFs in the whole market once exceeded 2 trillion yuan, although with the market, the total size of ETFs hovered around 2 trillion yuan, but with the help of the company's enthusiasm for issuance and the "more and more buying" funds, the total share continued to grow.
Broad-based index ETFs are highly sought-after.
Wind data shows that as of December 19, the share of ETFs in the whole market hit a record high, totaling 201 trillion copies, with a total scale of about 197 trillion yuan. Among them, ** type 136808.1 billion copies, currency type 23164.3 billion copies, 298 commercial type6.6 billion, 654 bonds2.3 billion copies, 2760 cross-border type0.5 billion copies.
In terms of the number of products, ** ETFs occupy the majority, with a total of 720, accounting for 6938%;There are 105 cross-border ETFs, accounting for 14%;There are 27 currency ETFs, accounting for 1175%;There are 19 bond ETFs, accounting for 332%;There are 17 commodity ETFs, accounting for 151%。
In the past two years, industry theme ETFs and broad-based index ETFs have exploded in a blowout, which seems to be the mainstream of the ETF market. Specifically, among the ** ETFs, thematic index ETFs and scale index ETFs occupy an absolute numerical advantage. There are a total of 393 thematic index ETFs, accounting for 1841%;There are 202 scale index ETFs, accounting for 3857%;The number of industry index ETFs, strategy index ETFs, and style index ETFs was 82, 31, and 9, respectively.
Compared with the competitive landscape of "the track is king" in previous years, in 2023, broad-based ETFs will surpass in one fell swoop, becoming the hottest variety in the issuance market this year, and the issuance of public broad-based index products will rise and fall.
Looking back on the ETF issuance market in 2023, the most eye-catching thing is the competition of broad-based index ETFs such as the Science and Technology Innovation 100, CSI 2000 and SZSE 50. Among them, the initial offering scale of ChinaAMC SSE Science and Technology Innovation Board 100 ETF reached 389.5 billion yuan, Bosera 1 SSE Science and Technology Innovation Board 100 ETF, E Fund SZSE 50 ETF, Wells Fargo SZSE 50 ETF and other initial offerings exceeded 2 billion yuan.
Multiple factors have contributed to the ETF boom.
The new demand for small- and medium-cap broad-based indices spawned by the full implementation of the registration system, the allocation demand and swing operation that are buying more and more, the inflow of state-owned funds and regulatory guidance are the main driving forces for the popularity of broad-based ETFs this year.
After the hot track concentration stage has passed, the market has entered a period of intermission, whether it is the concentrated layout of existing industries or the layout based on industrial forward-looking, after the scale up, it takes time to find a new track. The manager of an index in Beijing explained that with the reform of the registration system, the number of listed companies has increased, which has also given rise to new demand for broad-based indexes. For example, there are many large-capitalization companies in the constituent stocks of the CSI 500 Index representing the mid-cap, and there is a gap in the small- and medium-cap broad-based index, which has led to the hot phenomenon of the company's concentrated layout of small- and medium-cap index ETFs such as CNI 2000 and CSI 1000 this year.
In addition, some companies under the SASAC are deeply involved in the ETF market, which has a significant impact on the increase in ETF scale. Whether it is the previous increase in the broad-based ETF of Huijin Company, or the recent increase in the increase in the CSI Guoxin Central Enterprises Technology Index by Guoxin Investment, a subsidiary of Guoxin, it has played an obvious positive role in guiding the market. In addition, in the middle of this year, the collective batch issuance of central enterprise shareholder return ETF, central enterprise modern energy ETF, central enterprise science and technology leading ETF, etc., the initial offering scale reached 2 billion yuan, of which, many of the largest holders are Guoxin New Pattern (Beijing) Private Equity Management of the new development pattern of private equity investment, in addition to many insurance products, are regarded as an important participating force in the ETF market.
In the view of industry insiders, in the long run, the sustainability of the concentrated issuance of broad-based indices may not be as good as that of track-based products, which are more discoverable. The above-mentioned index ** manager said that the broad-based ETF is mainly reflected in the allocation value, while the trading attributes of the narrow-based ETF are very strong. In addition, with the continuous emergence of new industries and tracks, the theme can still be continuously subdivided, and the space that can be explored is relatively extensive.
In the future, the development of ETFs will benefit from the influx of social security**, investment advisors, individual investors, state-owned funds and other forces. From the perspective of capital inflow, the allocation of large-scale and relatively concentrated long-term funds such as pension funds and state-owned attribute funds is relatively stable, which can have a direct impact on the scale of ETFs. On December 6, the "Measures for the Administration of Domestic Investment of Social Security Funds (Draft for Comments)" also indicated the positive role of social security in the future, with the inclusion of index investment and exchange-traded open-ended index into the direct investment scope of social security, the scale of ETF will continue to grow. At the same time, the public, investment advisors and other institutional investors are an important force in providing liquidity to the ETF market.