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Since the beginning of this year, domestic ETF investment has become a trend, not only in the new market, but also in the continuous marketing (referred to as "holding") market in many places.
In addition to the strong "gold absorption" of the top broad-based ETFs, in the first half of this year, the scale of stock products such as Wells Fargo ChiNext ETF, E Fund MSCI US 50 ETF, Yongying CSI Shanghai-Shenzhen-Hong Kong Gold Industry Stock ETF, Tianhong CSI Dividend Low Volatility 100 ETF, and E Fund CSI Bank ETF also achieved substantial growth.
Specifically, the ETF has achieved scale increment, on the one hand, thanks to the catalysis of thematic style; On the other hand, factors such as LOF's transformation into ETF connection and the advantages of low fees are also helping ETF products continue to grow on a large scale.
Off-site efforts to "support" the field
In the first half of this year, a number of existing ETFs established before 2024 have achieved a significant increase in scale.
Wind data shows that as of June 30, the number of fund shares of E Fund CSI 300 ETF and Huatai Pineapple CSI 300 ETF has increased by 52.511 billion and 23.296 billion respectively since the beginning of this year, ranking among the top two non-stock ETFs. ChinaAMC CSI 300 ETF, Harvest CSI 300 ETF, E Fund SSE STAR Market 50 ETF, and ChinaAMC SSE 50 ETF have also added more than 10 billion new fund shares this year, ranking among the top in the market.
In addition to the top broad-based ETFs, some existing ETFs have also achieved remarkable results in terms of relative scale increment. Judging from the change rate of fund shares in the first half of this year, the Wells Fargo ChiNext ETF increased significantly from 18 million shares at the beginning of the year to 1.578 billion shares in the middle of the year, an increase of 86.62 times, getting rid of the previous development dilemma of maintaining a low scale.
According to the data, the Wells Fargo ChiNext ETF was established in June 2019, and the fund size quickly dropped from 500 million to less than 100 million after listing. Until January 2024, the fund has maintained such a low level, and there have been many times when the fund size is only 4.01 million.
In January this year, Wells Fargo Fund announced that after the deliberation and approval of the shareholders' meeting, the Wells Fargo ChiNext Index Fund (LOF) was terminated and changed to the Wells Fargo ChiNext ETF Feeder Fund. According to the first quarter report of 2024 disclosed subsequently, the transformed Wells Fargo ChiNext ETF feeder fund subscribed a total of 1.564 billion shares of Wells Fargo ChiNext ETF in the first quarter of this year, contributing 89.97% of the fund shares to Wells Fargo ChiNext ETF.
Similar to the Wells Fargo ChiNext ETF, ChinaAMC ChiNext ETF and CSI 2000 ETF have also gained funds to "increase their positions against the trend" in the process of net value decline this year.
In May this year, ChinaAMC ChiNext ETF ushered in a huge increase in holdings, with the number of fund shares increasing rapidly from less than 500 million to nearly 2.8 billion, and the latest scale was still above 2.4 billion at the end of June. In February this year, the number of CSI 2000 ETF shares increased rapidly from less than 100 million to 1.621 billion, and although it has decreased since then, it still remains at about 500 million, and it is currently the second largest CSI 2000 ETF.
Style-oriented continues to "attract gold"
Combined with this year's market style and performance, a number of ETF products tracking overseas, gold, dividends and other popular theme indexes have also received widespread attention and recognition from investors with their higher returns, and the scale has increased considerably.
Source: Wind Statistical period: January 1 to June 30
For example, E Fund's MSCI US 50 ETF achieved a return of 22.23% in the first half of this year by virtue of its heavy exposure to high-performing technology stocks such as Nvidia. From January to February this year, the ETF also issued several announcements to warn of the premium risk of trading prices in the secondary market and announced a temporary suspension of trading. With the high enthusiasm for allocation, the ETF's fund share also increased from 36 million shares at the beginning of the year to 754 million shares in the middle of the year, an increase of 20 times.
As the first gold stock ETF in the whole market, Yongying CSI CSI Shanghai-Shenzhen-Hong Kong Gold Industry Equity ETF has attracted a large number of investors to participate in this year's gold investment boom. In the first half of this year, the ETF yielded as high as 20.26%, and the number of fund shares increased from 111 million to 946 million. Driven by this, China Asset Management, Guotai Fund, Huaan Fund, ICBC Credit Suisse Fund and Ping An Fund also issued gold stock ETFs during the year.
In addition, one of the strongest main lines of the domestic equity market this year is the dividend style, and a number of related theme ETFs have taken advantage of the trend and achieved significant "gold absorption" effects.
In the first half of this year, the yields of Huatai Pineapple CSI Hong Kong Stock Connect High Dividend Investment ETF, E Fund CSI Bank ETF, ICBC CSI Hong Kong Stock Connect High Dividend Select ETF, ChinaAMC Hang Seng Chinese mainland Enterprise High Dividend Yield ETF, E Fund CSI Dividend Low Volatility ETF and Huatai Berry Dividend Low Volatility ETF all achieved yields of more than 15%, and the number of their fund shares increased by more than 2 times. The fund share of Tianhong CSI Dividend Low Volatility 100 ETF has increased significantly from 230 million at the beginning of the year to 3.311 billion in the middle of the year, an increase of 13.42 times.
It is worth noting that the preferential fund management fee rate may help the scale increase. Taking China Securities Bank ETF as an example, there are currently 9 similar products in the whole market, among which E Fund CSI Bank ETF has the lowest annual management fee of 0.15%, and the rest is 0.3% or 0.5%. In the first half of this year, although the CSI Bank Index rose by 17.25%, among the above 9 CSI Bank ETFs, only E Fund CSI Bank ETF was increased by investors.
In recent years, the growth of ETF scale has mostly come from existing products, and the proportion of new issuance scale has shrunk. The research department of CICC believes that the pattern of emphasizing initial offerings and ignoring business holdings has quietly changed. Looking ahead, fund companies can start from "investment" on the one hand, pay attention to the selection of new product tracks, and improve the liquidity services and product efficiency of ETFs; On the other hand, starting from "Gu", we will enrich the operation mode of ETFs, shift from the thinking of sell-side investment advisors to the thinking of buy-side investment advisors, and do a good job of in-depth companionship of investors.
Reviewer: Xu Jinzhong Editor: Ya Wenhui Proofreader: Wang Yin Producer: Li Ruoyu Signed: Peng Yong