On September 28, 2020, the first batch of 4 Sci-Tech Innovation 50 ETFs, which were sought after with 100 billion dollars of capital during the subscription period, was established. After a year of investment and operation, the total management scale of the four products exceeded 40 billion yuan, accounting for more than 30% of the total investment market value of the public fund's science and technology innovation board. According to data from doubling the total size of the first batch of science and innovation 50 ETFs, as of September 24, since the establishment of the first batch of 4 science and technology innovation 50 ETFs, the total scale was 40,871 billion yuan. The upper limit of the four funds at the time of issuance was 5 billion yuan. In comparison, the scale has doubled. Among them, the size of products under the Huaxia and E-Fangda funds was 21.683 billion yuan and 11.149 billion yuan respectively. In addition to the two science and innovation 50 ETFs under Guolian Security and Guangfa Fund, which were established later, the total size of the six science and innovation 50 ETFs on the market was 43,075 billion yuan. Furthermore, the Shuangchuang 50 ETF, which is based on investment from leading stocks on the Science and Technology Innovation Board, was established in June of this year. The latest scale of the Shuangchuang 50 ETF owned by 10 public equity companies including Huaxia, Southern, and E-Fangda reached 30.849 billion yuan. Three months after establishment, there was a 58% increase from the initial scale. A number of industry insiders said that the launch of the Science and Technology Innovation 50 ETF added core allocation strength to the science and technology innovation board market and played an important role in optimizing the investor structure and increasing market activity. Rong Ying, fund manager of Huaxia Science and Technology Innovation 50 ETF, said that passive index funds have played an important allocation role in the science and technology innovation board market. The Science and Technology Innovation 50 ETF is rich in investors and has absorbed a large number of individual customers, which is an important addition to the institutional-dominated science and technology innovation board market. The constituent stocks of the Science and Technology Innovation 50 Index have high liquidity, and the transaction amount has doubled. Currently, the average daily turnover and turnover rate of large market capitalization stocks on the Science and Technology Innovation Board is comparable to that of GEM large-capitalization stocks. According to data from the 2021 Fund's semi-annual report, as of the end of June, the first batch of 4 Sci-Tech Innovation 50 ETFs invested in science and technology innovation board stocks had a total market value of 39.924 billion yuan, accounting for 31.72% of the total market value of the science and technology innovation board market invested by public funds, indicating that indexed investment has become an important form of public investment in the science and technology innovation board market. “Compared with other sectors, this ratio is relatively high, indicating that in the science and technology innovation board market, a large part of the allocation of public funds is achieved through indexed investment.” Rong Ying said. Cheng Xi, fund manager of the E-Fangda Innovation 50 ETF, believes that the first batch of Sci-Tech Innovation 50 ETFs has built a bridge between investors and science and innovation investments, continuously helped the development of science and technology in China, and provided a good capital soil for innovative enterprises. However, the scale differentiation of the first batch of Sci-Tech Innovation 50 ETF products is very obvious. According to the data, the latest scale of Huaxia and E-Fangda's science and innovation 50 ETFs was 21.7 billion yuan and 11.1 billion yuan, 4.2 times and 2.2 times the scale of establishment, respectively, while the size of funds owned by Huatai Berry and ICBC Credit Suisse has shrunk. The medium- to long-term investment value of the Science and Technology Innovation Board is highlighted. Judging from the fund's investment performance, the yield of the Science and Technology Innovation 50 ETF was still negative in the year it was founded, and the Double Venture 50 ETF did not receive positive returns. However, the market is still full of confidence in the future value of leading stocks on the science and technology innovation board, and the net inflow of capital is obvious. Cheng Xi said that after the accumulation of the previous two years, China's science and innovation industry is in a boom cycle where performance continues to rise and profits are beginning to be realized. With the publication of quarterly and semi-annual reports, the Science and Technology Innovation Board's performance trends have gradually become clear, and investors' doubts about future uncertainty have also declined. Along with continued growth in performance, the valuation of the entire sector and index declined compared to 2020. “For industries that are on a medium- to long-term upward path, a lot of capital has increased their positions at the bottom through the Science and Technology Innovation Board 50 ETF in order to obtain low-level, high-quality chips from technology stocks. As reflected in the upward flow of capital, there was a situation where the index was adjusted but the size of ETFs increased.” Cheng Xi said. Rong Ying said that judging from the semi-annual report and the market's profit forecast for the next 2 to 3 years, among several broad-based indices, the profit growth rate of the 50-component Sci-Tech Innovation stock was the highest. The valuation also remained at the same level as other growth stock sectors, and there was no systematic overestimation. The Huatai Berry Fund analyzed that this year, China began speeding up reforms in the field of science and technology in various aspects such as intellectual property protection, evaluation and transformation of scientific and technological achievements, and use of scientific research funds. In the next three to five years, there will also be a qualitative leap forward in the technological innovation level and domestic substitution capacity of science and innovation enterprises, and leading enterprises on the science and technology innovation board will gradually become internationally competitive. Huatai Berry Fund believes that reverse market redemption has always been an important feature of ETFs. Not only science and innovation 50 ETFs, but many themed ETFs that have fallen a lot this year have also received a large number of net purchases, reflecting the rational investment attitude of ETF investors. ETFs have played a full role as a “balancer” and “stabilizer” of the market, reducing market fluctuations to a certain extent.