Public ETF Training: Head Sits On A Wide Base "Monopoly" Chaser To Find Features Bearing Configuration Disk.

"Now the development of ETF is not waiting for us. We must seize the opportunity." Many executives of fund companies accepted the twenty-first Century economic report reporter's interview and tended to agree on the trend of the industry development.

According to the statistics of journalists, as of November 7, 2019, there were 229 ETF products in the market, with a total scale of 743 billion 900 million yuan.

2019 is the year of ETF development, and the scale, quantity and target of ETF are increasing rapidly.

A large fund company executives told reporters, "ETF, whether broad base or subdivision industry, will always be the first entrant, and it will be difficult for the latter to catch up with the advanced ones, because the operation mechanism of ETF is easy to form a positive cycle."

It is worth noting that some of the fund companies in 2019 are heading for differentiated innovation and development on ETF, forming their own characteristics. "One of the major characteristics of ETF this year is the rise of industry and thematic ETF." In response, ETF fund manager of a large fund company pointed out.

ETF outbreak

In 2019, ETF continued its blowout development in 2018.

As of November 7, 2019, a total of 64 new ETF have been set up this year, and another 21 new ETF funds are being issued. It is nearly two months since the end of 2019. The number of new ETF has been far higher than that of 38 last year, a record high.

In the interview with our reporter, the responsible person in charge of the regulatory authorities also pointed out that the development of ETF is an important development direction of the asset management industry.

Judging from the growth of stock ETF last year, as of November 7, 2019, excluding the newly established ETF in 2019, the total scale of ETF was 10391 billion, while in December 31, 2018, the scale of ETF was 362 billion 500 million, and the scale of the old ETF fund increased by 187% in 2019.

In 2019, the newly established ETF, as of November 7, 2019, had a total share of 96 billion 565 million, reaching a record high of 137 billion 191 million yuan.

Looking back at the development of ETF, ETF has gone through 16 years since the issuance of 50ETF in China at the end of 2004. In the past two years, ETF has been developing with acceleration.

According to the quantity of ETF set up every year, a total of 9 were established in the 6 years before 2010, and the average annual number is less than two. Thereafter, the 8 years from 2010 to 2017 entered a relatively rapid development period. The number of ETF was set up below 30, and the top three were 29 in 2013, 23 in 2017, 20 in 2016, and more than 10 in each 5 years.

It is worth noting that in 2018 and 2019, ETF entered the outbreak period.

In 2018, 38 ETF were set up, and the ETF since 2019 has reached a record 64.

From the share of issuance, a total of 473 billion 959 million ETF has been issued in the 16 years since 2004. In recent three years, the share of ETF issued in 2017, 2018 and 2019 was 30 billion 378 million, 92 billion 18 million and 143 billion 837 million respectively, accounting for 4.72%, 19.41% and 30.35% of the total ETF share respectively. In simple terms, the ETF issued in 2018 and 2019 accounted for 50% of the total share of the issue. We can see the great development of ETF in the past two years.

In the last two years of explosive growth, in 2018 and 2019, the share of ETF increased by 61 billion 640 million yuan and 51 billion 819 million yuan respectively, with an increase of 202.91% and 56.31% respectively.

Innovation trend

With the great development of ETF, many new innovations have appeared in the new ETF in 2019.

According to the twenty-first Century economic report reporter, in the past, some of the index ETF, which has attracted close attention, has entered the sight of fund companies. For example, the SmartBeta type cashi card, the basic 50ETF of the sharp alliance, the 4 QDII funds tracking the Japanese market, the innovative CSI artificial intelligence ETF and so on.

"The bigger feature this year is the rise of the industry thematic ETF, such as ETF of science and technology, which is faster in scale growth, mainly because individual investors are more involved in the market, but the growth base of ETF, which originally launched the new industry, has shrunk this year." In November 7th, ETF fund manager of a large fund company said.

Fund companies have begun to develop their own ETF. The above ETF fund managers pointed out that "the development of various fund companies has formed different strategies, some focus on broad-based development, such as ICBC Credit Suisse, Huaxia Fund and other large companies, and some industries are more powerful, such as Warburg's industry theme ETF."

Zhang Xiaonan, from xingyin foundation, also pointed out that in addition to the traditional scale index (such as HSK 300, CSI 500, SSE 50, etc.), the ETF products with the index of the industry index (such as securities companies, CSI consumption, etc.), thematic indexes (such as structural adjustment, Shanghai state owned enterprises), and the strategy index (such as gem 50) have also developed rapidly, and the scale has shown a higher growth rate than ETF.

According to Wind statistics, by the end of the three quarter of this year, the industry index ETF has increased by 93.03%, the theme index ETF has increased by 41.05%, and the strategic index ETF has increased by 59.14%.

Executives of another large fund company also told reporters, "the fund homogenization in the past is very serious. But from last year to this year, especially this year, I feel that the differentiation of the fund company's industry characteristics is becoming more and more obvious. For example, some fund companies are making efforts in the ETF and index categories, especially those companies that made wide base index in the first few years, and now their broad base index sometimes monopolies a certain index type.

Yang Delong, chief economist of Qianhai open source fund, said: "ETF has developed well this year, mainly because some organizations like to configure the market by configuring ETF, because configuring ETF is relatively simple and can avoid the risk of individual stocks. It is a good investment tool, and many organizations, including insurance, banks and so on, all like to match ETF. Other large individual investors also like to match ETF.

"The increase in ETF this year is mainly due to some mainstream ETF, such as the 500 mainstream ETF such as CSI, CSI 300. For the mainstream ETF, I think it should be vigorously developed. For many fund companies, the mainstream index ETF is a better strategy. Yang Delong said.