CSI A500 ETF receives over 220 billion yuan in inflows, brokerage asset management layout

　　This year, the CSI A500 ETF (Exchange Traded Fund) has been launched with a scale of over 220 billion yuan. As of December 4, the scale of passive index funds linked to the CSI A500 has exceeded 200 billion yuan, setting a new record. If the 2.974 billion yuan of enhanced index funds is included, the cumulative scale will reach 224.351 billion yuan.

　　Recently, following the hot issuance of CSI A500 ETF, index enhancement funds linked to the index have also been launched one after another, and securities asset management companies have also joined the index enhancement track.

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Three major sources of funds

　　As of Tuesday this week, the size of passive index funds linked to the CSI A500 reached 220.864 billion yuan, and enhanced index funds were about 3 billion yuan, with a total size of nearly 224 billion yuan.

　　At present, there are dozens of passive index funds linked to CSI A500, among which the scale of China Tai Securities CSI A500 ETF has exceeded 20 billion yuan, and the scale of CSI A500 ETFs exceeding 10 billion yuan include Southern, Fuguo, Invesco Great Wall, GF, China Merchants, etc. There are also CSI A500 ETFs of Yinhua, Taikang, China Universal, Bosera, etc. with a scale of more than 5 billion yuan.

　　According to the Securities Times reporters investigation, the sources are mainly divided into three categories:

　　One is the flow of funds between broad-based index funds. While CSI A500 ETF saw large-scale net subscriptions in November, CSI 300 ETF suffered large-scale redemptions, with the redemption amount of CSI 300 ETF accounting for about one-third of CSI A500 ETF.

　　Second, the shares of some actively managed funds have shrunk, and funds have shifted to passive index funds such as the CSI A500ETF. According to data released by the China Securities Association, the shares of mixed funds decreased by about 110 billion in October. This trend has continued for 10 months this year, in sharp contrast to the continuous record highs of passive index funds.

　　Third, after the package of favorable policies was introduced on September 24, the incremental funds waiting to enter the market to buy the bottom, in addition to directly buying individual stocks, are more likely to choose to buy broad-based index funds rather than actively managed funds to participate in the market.

Fierce Competition for broad-based index ETFs

Securities asset management firms strengthen index layouts.

　　According to statistics, more than 60 public funds have issued index funds linked to the CSI 300, but funds are highly concentrated at the top. Eight CSI 300 ETF products from Huatai-PineBridge, E Fund, Hua Xia, Harvest, China Asset Management, and Tianhong Fund account for 85% of the size of this type of index fund.

　　Due to the representativeness and importance of this broad-based index, it can be compared with the CSI 300 Index. Even though it requires high system R&D investment, continuous marketing expenses, and other costs, the issuance of the CSI A500 Index Fund still presents fierce competition.

　　Recently, following the hot issuance of the CSI A500 ETF fund, index enhancement funds linked to the index have also been launched one after another. Guotai Junan CSI A500 Index Enhanced Fund and Xingzheng Global CSI A500 Index Enhanced Fund are both being issued.

　　Previously, the indexes linked to quantitative index enhancement funds in the market were relatively concentrated, mainly including CSI 500, CSI 1000, CSI 300, etc. Index enhancement funds usually obtain certain excess returns through quantitative tools, so the fees are slightly higher than ordinary ETFs.

　　It is understood that quantitative investment is the traditional strength of Guotai Junan Asset Management. It has a complete public offering product line and the team adopts a stock selection model that deeply integrates “fundamentals + real-time quantity and price”, which is unique in the public offering quantitative field dominated by fundamental models.

　　Guotai Junan Asset Management's quantitative team will strengthen the research on index constituent stocks, enhance the uniqueness of strategies and models, and differentiate itself in an increasingly involved industry. Hu Chonghai, general manager of the quantitative investment department of Guotai Junan Asset Management, once said that after several rounds of quantitative and active growth cycles, we should be more vigilant about assets with poor liquidity and control risks more strictly.