Since 2024, hundreds of billions of funds competing for ETFs have detonated market enthusiasm, and as of February 19, the total net inflow of A-share ETFs has reached 3,5544.5 billion yuan. In recent years, China's indexed investment has developed rapidly in a posture of riding the wind and waves, and the scale of ETFs has expanded against the market, with a total market value of 205 trillion yuan, of which the market value of equity ETFs reached 173 trillion yuan, a record high. Experts believe that the ETF market has opened a positive feedback loop in which high-quality supply creates terminal demand, and terminal demand drives effective supply, so that investors, industry participants and capital markets can share the dividends of indexed development.
Money is pouring into broad-based ETFs
Since 2024, the market has set off a boom in buying ETFs with large funds. Wind statistics show that since 2024, the total net inflow of A-share ETFs has reached 3,5544.5 billion yuan, a historical record. As a comparison, in the whole year of 2023, China's **ETF will have a total net inflow of 44854.1 billion yuan.
Since 2024, the three most "gold-absorbing" ** have had net inflows of more than 50 billion yuan, namely E Fund CSI 300 ETF, Harvest CSI 300 ETF, and ChinaAMC CSI 300 ETF, with net inflows of 627 respectively9 billion yuan, 5434.9 billion yuan, 5036.1 billion yuan. In addition, Huatai Pineapple CSI 300 ETF had a net inflow of 4974.3 billion yuan, the net inflow of CSI 500 ETF, ChinaAMC SSE 50 ETF and E Fund ChiNext ETF all exceeded 20 billion yuan.
If calculated from the announcement of **Huijin on October 23, 2023**ETF and will continue to increase its holdings, in less than 4 months, the net inflow of A-share ETF funds has reached 46715.3 billion yuan.
In the process of rolling "capital tide" pouring into broad-based ETFs, the scale of ETFs under many ** companies such as E Fund, Harvest, Huaxia, and Huatai Berry has increased significantly, and the scale of many products has repeatedly reached new highs, and the second and third 100 billion A-share ETFs have been born one after another.
Wind data shows that the first 100 billion A-share ETF Huatai Pineapple CSI 300 ETF has climbed to a peak of 100 billion yuan in August 2023, and the scale has been rising again this year, with the latest scale reaching 1796600 million yuan. ChinaAMC SSE 50 ETF succeeded Huatai Pineapple Shanghai and Shenzhen to become the second 100 billion A-share ETF, with the latest scale of 11041.7 billion yuan. E Fund CSI 300 ETF then became the third 100 billion A-share ETF, with the latest size of 11021.5 billion yuan.
China Life Security** believes that as large funds continue to increase their holdings of A-share assets through ETFs, and the scope of their holdings has expanded to growth and small-capitalization sectors, the trading volume of the Science and Technology Innovation Board, ChiNext ETF and CSI 1000 ETF has increased significantly, which has greatly boosted market confidence and has a significant boost effect on growth and small-cap stocks. The improvement in liquidity put an end to the negative feedback deduction of expectations and funds.
The market space is vast.
In recent years, China's indexed investment has flourished and the momentum is strong. According to the research report of Huachuang**, China's ETF has ushered in a large-scale explosion since 2019, with a compound growth rate of 29% from 2019 to 2023. Among them, **-type ETFs occupy a major position, accounting for 71% of the scale in 2023. *Fixed income and cross-border ETFs are among the top in terms of growth. Specifically, from the perspective of ETFs, the structuring around 2019 led to the growth rate of industry theme ETFs leading the market, and the capital inflow of broad-based products has accelerated significantly since 2023, and the position of the top equity ETF products is relatively stable, and the Matthew effect is obvious.
According to the "Shanghai ** Exchange ETF Industry Development Report (2024)" recently released by the Shanghai Stock Exchange, as of the end of 2023, the number of ETFs listed on China's domestic exchanges reached 889, an increase of 18 from 753 at the end of 202206%, and the total market value at the end of 2023 will reach 205 trillion yuan, compared with 160 trillion yuan, an increase of 2813%。Among them, the market value of equity ETFs reached 173 trillion yuan, a record high, accounting for about 2% of the total market value of A-shares.
Referring to overseas mature markets, passive investment and active investment are competing with each other or the general trend. As of the end of 2023, the total size of ETF assets listed and traded globally reached 11$61 trillion, an increase of 21 from the end of 202283%, with a net inflow of nearly one trillion dollars for the year. Among them, the size of the US ETF market reached 8At $11 trillion, the passive scale of the United States surpassed the active scale for the first time, and indexed investment crossed a new milestone.
In the future, China's ETF market has a broad space for development. Xu Meng, executive general manager of the quantitative investment department of ChinaAMC, said that with the continuous increase in the proportion of domestic institutional investors, the effectiveness of the A** field has improved, and the difficulty of actively beating the index has increased. Index**, especially ETF products, have the advantages of large scale, good liquidity, and distinctive risk-return characteristics, and are gradually becoming the first choice for asset allocation of institutional and individual investors. In addition, the rapid development of the derivatives market and investment advisors has also promoted the rapid development of ETFs, and there is still a lot of room for development in the domestic ETF market, and it is possible to surpass the scale of active ETFs in the future.
A **company index manager** in East China said that the expansion of both supply and demand will provide a steady stream of development opportunities for ETFs. In terms of product supply, new industry-themed ETFs and cross-border ETFs in emerging markets will continue to emerge, and the capacity of some high-quality track ETFs is expected to continue to increase. In terms of investment demand, when the product "hardware" of major market participants is almost the same, ** companies need to use service "software" to create differentiated competitive advantages, so as to leverage a wider and more sticky ETF investment demand.
Editor-in-charge: Ren Haopeng |Review: Li Zhen |Supervisor: Wan Junwei.
*: China ** newspaper).