"ETF Winding Up Is Not A Bad Thing". 28 Mini ETF Multi Head Fund Companies Are On The List.

ETF products also announced the termination of the contract, winding up.

In June 18th, Penghua Fund issued a notice on the termination of listing of Penghua ETF. Earlier in June 12th, Peng Hua Fund said that the fund share holders conference had voted to terminate the motion related matters of Penghua Shenzhen ETF fund contract.

The Huaan fund also announced this month that the ETF share holders' meeting of Huaan CSI private enterprises voted to adopt a motion to terminate the related matters of the fund contract.

In June 16th, Huaan CSI private enterprise grew ETF and entered the liquidation process.

On the other hand, the ETF ETF fund has attracted many companies since last year.

For example, recently, the the Great Wall fund has announced the ETF sub brand for ETF strategy upgrading.

"We have a product suspended, and this year ETF will have to maintain stability as a whole." A public security fund broker told the twenty-first Century business reporter. The background is that regulators have a series of new requirements for the ETF's issuing side.

"The scale is concentrated on the head products, and the size of some mini funds gradually shrinks, triggering the liquidation conditions." In June 18th, a public fund official in Southern China told the business reporter in twenty-first Century.

But is it just the "Matthew effect" that is so simple?

More than ETF liquidation

Some funds go to liquidation, which is not a bad thing for the fund industry.

Take Penghua ETF as an example, the fund was established in September 2011 and has gone through nearly nine years of history.

The fund now has a net worth of 1.4498, and its net worth has risen 45% since its inception.

"Before the fund company liquidation public fund's ideological burden is too heavy, because the existence of some small fund problems swaying, but is not conducive to these products smoothly withdraw from the stage of history." In June 18th, a fund company in Beijing was interviewed by the public.

In addition to Penghua Fund, the Huaan fund also announced this month that the ETF share holders' meeting of Huaan CSI private enterprises voted to adopt a motion to terminate the related matters of the fund contract.

In June 16th, Huaan CSI private enterprise grew ETF and entered the liquidation process.

Coincidentally, the index target of Huaan fund products is similar to Penghua Fund.

According to the twenty-first Century economic report reporter's access to data, two liquidation funds were shrunk in net worth and a single individual investor held a high share.

For example, the growth rate of Huaan CSI private enterprises on the 22 day of the ETF5 registration date shows that there are only 5 million 984 thousand and 600 remaining shares in the fund. The first quarter reports showed that the proportion of single investors holding ETF in Huaan was 41.64%, which has exceeded 20%.

"ETF appears to be normal. Huaan is the forerunner of the ETF field. Huaan SSE 180 and Huaan gem 50ETF occupy an absolute advantage in the market. However, the other ETF products are relatively small in scale, and there are many mini ETF funds. Once triggering the liquidation conditions, they will be forced to liquidate." Zhang Ting, a fortune researcher, said.

Zhang Ting said, Peng Hua also has many ETF funds, but only Peng Hua central card media ETF fund is relatively large, other funds are relatively small, and many will trigger liquidation.

In fact, apart from several products that this month's announcement is winding up, there are still more than 50 million Mini ETF on the market.

In twenty-first Century, according to Wind data, a total of 28 equity ETF funds with a net asset value of less than 50 million yuan were listed at the end of the first quarter of this year.

Among them, the Zhongguancun A shares ETF, the rich country gem ETF, the Castrol, the medical and health ETF are the smallest three ETF, 11 million 620 thousand and 100 yuan, 12 million 878 thousand and 800 yuan and 14 million 440 thousand and 700 yuan respectively.

The normalization of the mini fund liquidation itself is also a process of market clearing. Promoting this process can help some fund companies lose their historical burden and strengthen the operation and management of quality products. The fund industry insiders pointed out.

Layout competition is still fierce.

On the one hand is fierce competition, on the other hand, the acceleration of admission.

For example, in recent days, the the Great Wall fund has announced the upgrading of its ETF development strategy and launched the ETF sub brand "Smart ETF".

INVESCO the Great Wall said that the future layout of ETF will be "Smart" "Beta" is the main line. On the one hand, the auxiliary line combines the advantages of the company's existing active equity and quantitative enhancement to explore innovative types such as strategic ETF, index enhanced ETF and so on. On the one hand, it seeks breakthroughs in the style and industry category, focusing mainly on the market gaps in the hot field, and avoiding homogenization as much as possible. The core is to find industries that have potential to break out, and also at the same time. In the existing ETF, we need to find suitable varieties for optimization.

INVESCO the Great Wall was not a fund company with ETF management.

Wind data show that the current the Great Wall fund has a total of 3 stock ETF, including INVESCO the Great Wall central certificate TMT150ETF, Jing Shun the Great Wall MSCI China A share international ETF and Jing Shun 500ETF 500ETF. At the end of the first quarter, the largest scale was TMT150ETF, which was 389 million yuan in the Great Wall.

"At present, the ETF market shows a stronger pattern in the wide base area. It has a preemptive advantage. In the future, the competition of the head products is a price war, which is lower than the rate of the other players, so it is difficult for other fund companies to squeeze in. But industry ETF and Smart Beta ETF will still have more room for development in the future. If small and medium sized fund companies want to break through, they can layout from these directions and occupy the first mover advantage. Some analysts believe that when interviewed.

In fact, since last year, a number of fund companies such as Boshi fund and Harvest Fund have issued ETF sub brands.

"Future wide base index will focus more on competition among the head products. The better the liquidity, the better the advantage, and the investors will be more willing to buy. The industry ETF and Smart Beta ETF will gradually increase competition. Especially the Smart Beta ETF is first seen in China. The space for future development will be relatively larger. Many small and medium-sized fund companies will increase competition and gain a certain first mover advantage." Zhang Ting said.

It is worth noting that earlier regulatory authorities have put forward normative guidance for the phenomenon of "scraping hot spots" in the industry, including some normative opinions on the index level.

Behind the tightening of regulation, many ETF approvals slowed down.

Affected by this, the layout of some fund companies has also changed.

"The guiding measures of the regulatory authorities, on the one hand, are intended to prevent the fund companies from getting together to declare and disorderly competition in the industry, while making the industry more standardized and fully revealing the risk characteristics. On the other hand, the fund company can rethink and relocate, focusing on product management instead of blindly pursuing big management scale. The standardization of products helps to promote healthy and healthy development of the industry, while protecting investors more effectively. Ping An Securities analyst Jia Zhi pointed out.

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