Recently, the total share of ETFs in the whole market has exceeded the 2 trillion mark, hitting a record high. ETF** is the most worry-free investment tool for investors, and it is allocated by the majority of financial derivatives, which is an important direction for future development.
ETF** tracks an index, and the shareholding ratio is fully allocated according to the weight of the index, in order to follow the index fluctuations as accurately as possible. Although the holdings of ETF** hardly require manager intervention, it is found from the final results that the final investment performance of most active ETFs cannot exceed the investment return rate of large ETFs**, so large ETF index** is also called "devil**".
With the continuous development of the financial market, simple trading has been unable to meet the investment needs of investors, and ETF investors are no longer simple investors.
For example, when an investor is constantly calling stock index options in the options market, the options market maker has to sell a large number of stock index call options to provide liquidity, but at this time, the market maker is also worried that the future stock index may trigger the investment risk of the stock index options they sell, so the market maker can hedge the ETF, that is, the market maker avoids the stock index by selling the stock index call option while the ETF while earning a premium for option investors.
In addition, there will also be investors who are optimistic about the future of the opportunity, and hope to obtain a large leveraged income, choose to invest through the stock index contract at this time, the stock index has a premium transaction, large institutions see the difference between the stock index and the spot, and they can also short the stock index while carrying out almost risk-free spot arbitrage trading on the other hand.
Therefore, ETF** is not only held by ordinary **investors**, but also exists as a basic allocation of many financial instruments, and in the current A** market, ETF** is of great significance and indispensable.
In the view of this column, the recent rapid growth of ETF** share may have something to do with the continuous ** of the "national team". Social security** and other compliance institutions invest through ETFs, which have the advantages of low management costs, no need to adjust positions and swap shares, and do not need someone to monitor whether they need to pay for allotments on a daily basis, whether they need to subscribe for placement convertible bonds and other operations. At the same time, buying ETFs will not lead to the suspicion of rat warehouses, and to some extent, ETFs are also the best investment channels for "national team" support.
However, ETF share growth is also limited by the size of the index. For example, large indices such as the CSI 300 Index** can have a large market capacity and an almost infinite expansion of the scale, but for some relatively small industry ETFs, if the scale is too large, it may trigger every move that affects the fluctuation of the entire industry index, so for small index ETFs, the scale cannot grow endlessly.
Beijing Business Daily commentator Zhou Kejing.