The CITIC Securities Research Report said that the ETF allocation was right in the context of the decline in excess earnings from active equity. During the special period, ETFs undertook an important mission to obtain the Central Huijin strategic allocation, and various beta tools co-built an ecosystem around ETFs. In 2023, the size of non-monetary ETFs reversed the market by 507.7 billion yuan to 1.85 trillion yuan. Broad-based index funds such as the Shanghai and Shenzhen 300 and Science Innovation 50 were favored by capital, and the total index fund size exceeded 3 trillion yuan. The position of ETFs and ETF-linked funds in the index fund market has been further consolidated, and LOF and ordinary OTC index funds are developing slowly. The concentration of ETF managers has increased, and the top three have all grown by more than 40%. In terms of new products, the initial launch scale of single products has declined, and the small-cap index fund layout is hot throughout the year. ETF rates and excess earnings are gradually receiving attention, and the scale of low-rate products has increased markedly. Private equity funds have become important investors in ETFs. Overseas allocation and transaction investors are beginning to pay more attention to domestic ETFs. In 2023, there is a clear trend of additional ETFs for insurance funds and corporate annuities, and ETFs are becoming an important tool for wealth management and institutional allocation.