After achieving a breakthrough in 2018, traded open-index funds (ETF) still maintain a rapid development trend in 2019. 2019 became the year with the largest number of ETF and the largest scale of fund-raising in the 15 years since its inception: a total of 90 non-monetary funds were set up, raising a total of 175.437 billion yuan.
Data show that 90 ETF have been set up in 2019, an increase of 52 over 2018; there are still 10 ETF in the pipeline, which will end in January next year.
In 2019, ETF is also a popular style. The establishment scale of CCTV ETF under Boshi and Castrol is 16.735 billion yuan and 13.25 billion yuan respectively. Guangfa Central Chuang ETF, Fuguo China Securities military Industry leader ETF, Huitian Fuzhong Securities 800ETF, Ping an Guangdong-Hong Kong-Macau Greater Bay Area ETF and other four ETF raised more than 5 billion yuan.
As of December 27, the total size of equity ETF was 531.076 billion yuan, an increase of more than 180 billion yuan, or 52.88 percent, over last year. The growth of theme ETF scale is more obvious. Cathay Pacific Securities ETF outstanding performance, growing into a scale of more than 10 billion yuan of the industry ETF. The size of Huabao Securities ETF has increased to 5.8 billion from 1.4 billion at the beginning of the year, while the size of Shanghai and Shenzhen 300ETF for Guoshou Security has increased to 4.729 billion from 736 million at the beginning of the year.
At the end of 2004, China's first ETF Huaxia Shanghai Stock Exchange 50ETF was established. Fifteen years later, in 2019, ETF set a record in terms of both the number and scale of its establishment. A total of 90 newly established ETF raised 175.437 billion yuan, a substantial increase over 2018-in 2018, 38 ETF raised 70.058 billion yuan.
In terms of product innovation, in 2019, innovative products such as regional themes of cross-market transactions, such as ETF, commodity ETF, Japan ETF, have emerged one after another. ICBC Credit Suisse Fund took the lead in establishing the first Shanghai-Hong Kong-Shenzhen cross-border ETF ICBC Bay ETF, Huaxia, Dacheng, Jianxin and other fund companies issued the first batch of commodity ETF, and Huaxia, Southern, Yi Fangda and Huaan four fund companies issued the first batch of China-Japan Interchange ETF.
It is worth noting that with the great development of ETF, more and more fund companies have joined the war. Due to the huge investment in ETF business, the early layout of ETF business are established strength public offerings. According to the statistics of the initial public offering of ETF, the fund companies newly entering the ETF market in 2019 include Tianhong, Minsheng plus Silver, Zhongrong, Qianhai Open Source, Taikang Capital Management, Zhejiang Merchants, Huafu, and Xingye. The second new public offering represented by Hony far has also laid out ETF one after another, with 9 public offerings launching ETF products for the first time.
Among the fund companies that joined the ETF war for the first time this year, six companies, including Minsheng Canada Bank and Qianhai Open Source, each set up an ETF this year. Tianhong, Zhongrong and Hongyi have each set up two ETF this year. Hony far Fund was established at the end of January 2018, less than two years ago, the company has set up two ETF, namely Hony far country Certificate consumption 100ETF and Hony far distance country Certificate Private Enterprise leading 100ETF.
And layout ETF business for many years of fund companies, this year to improve the layout, do large-scale, but also to create a richer ETF product line. Huaxia Fund focuses on enriching industry theme ETF layout this year, while ICBC Rui Fund continues to expand in broad base and industry subdivision themes. It already has four wide base ETF and cross-border ETF ICBC Creative 100ETF.
In addition, while the new fund companies make great efforts to develop ETF business, they also continue to increase investment in improving the system. Zhao Fei, executive general manager of Zhongrong Fund Index Investment Department, said that Zhongrong Fund will also optimize and upgrade at the ETF investment transaction level in the future, such as building more professional algorithmic trading modules to further reduce transaction friction and transaction costs in ETF. In order to support the development of commodities, bonds and cross-border ETF products, the company will also build corresponding business systems.
