The scale of stock ETF rose and fell after breaking through 500 billion yuan in September. Recently, the establishment of one belt one road ETF of three state-owned enterprises stabilized the scale of stock ETF, with the latest scale of 526.933 billion yuan increasing by 51.68% compared with the end of last year.

The scale of equity ETF increased to 527 billion yuan

The market value of equity ETF has risen with the rise of the stock market. The new equity ETF have been issued rapidly. The total scale of equity ETF has stood at 500 billion yuan. Data shows that as of November 8, the total scale of equity ETF was 526.933 billion yuan, an increase of 179.541 billion yuan or 51.68% over the end of last year. This year, the total scale of 62 newly established equity ETF is 139.868 billion yuan, accounting for 77.9% of the new scale of equity ETF, becoming the main force of the large expansion of equity ETF.

With the multiple advantages of regulators' efforts to develop equity funds, exchanges' efforts to reduce ETF costs and improve trading efficiency, public funds have made great efforts to distribute equity ETF, and this year's best-selling funds of this type appear frequently. The best-selling funds mostly appear in the following categories of products: first, the ETF that helps the innovation and reform of central enterprises; second, the product that helps the development strategy of one belt one road of state-owned enterprises; third, the hot spot of science and technology investment.

As for the innovation of equity ETF market and the continuous expansion of market scale caused by the influx of institutional capital, relevant people said that in markets such as the United States, the proportion of institutional investment is far higher than that of individual investors, and institutions have higher demand for ETF allocation. More institutional investors entering the stock market will also help to reduce market volatility and reduce irrational investment to some extent. On the other hand, the reform of state-owned enterprises has come to a substantive landing stage. For capital operation companies and related state-owned enterprises, through the ETF one or two level market purchase, redemption and transaction function, the stock will be replaced by ETF, which can achieve the adjustment of ownership structure, reduce the risk of single shareholding, optimize the allocation of resources and improve the efficiency of capital operation. "This is equivalent to supervising and accelerating the innovation of ETF products from the demand side."

18 equity ETF raised for the first time account for 80%

The total scale of equity ETF continues to expand, but not all products are popular, and the polarization of the initial market of equity ETF is very obvious. According to the data, of the 62 newly established equity ETF this year, 18 have raised more than 2 billion yuan for the first time, with a total scale of 113.238 billion yuan, accounting for 80.69% of the equity ETF issuance scale; however, 22 have raised less than 500 million yuan for the first time.

Data shows that as of November 8, the total scale of 12 newly issued equity ETF since the fourth quarter is 33.546 billion yuan, and the average scale of the fund is 2.795 billion yuan, an increase of 28% over the first raising scale in the previous three quarters.

With the maturity of the stock market and the growth of institutional investors, instrument products such as equity ETF will continue to expand in the future. But to win the competitive advantage, we need to have a number of factors such as first mover advantage, matching market situation and investor experience.

Due to the limited share of ETF purchased by shareholders of listed companies, more homogeneous funds, and different channel capabilities of each fund company, the issuance of equity ETF presents a trend of liquidity concentration. The scale of equity ETF under large-scale public offering continues to rise, while the public offering of small and medium-sized fund companies and initial layout of equity ETF has encountered many problems of smaller initial offering scale.

Since November, after the regulatory authorities have given window guidance to ETF exchange and regulated the excessive exchange behavior, several listed companies have issued the announcement of abandoning ETF shares, making some companies "worse" who rely on stock exchange for ETF shares to make a large raised, and the establishment scale of new equity ETF funds will also be limited.