There were 12 ETFs in the month, and the theme of technology and dividends dominated the screen

According to the observation of brokerage China reporters, since 2024, thanks to the favorable policies and the promotion of market dynamics, the issuance of ETFs represented by technology and dividend themes has continued to be active.

At a time when the capital market is constantly evolving, ETFs, as the focus of investors' extensive attention, are developing very strongly. Since the beginning of this year, with the gradual maturity of the ETF market, the management scale of ETFs has also been rising, and more innovative and thematic products are being introduced to the market one after another.

During the year, 44 new ETFs were established

According to the data, since April, 12 new ETFs have been established, with a total of 3.316 billion shares.

Among these newly established ETFs, there are 5 ETFs with a technology theme, including Harvest CSI All-Index Integrated Circuit ETF, CSI SSE Science and Technology Innovation Board Chip ETF, CUAM CSI Information Technology Application Innovation Industry ETF, Bosera CSI Semiconductor Industry ETF and Harvest CSI Robot ETF. There are 2 ETFs with dividend themes, namely Dacheng CSI Dividend Low Volatility 100 ETF and Bosera CSI Dividend Low Volatility 100 ETF. At the same time, there is also a new QDII ETF, which is Harvest Germany DAXETF.

Looking back at March, a total of 19 new ETFs were established, including 10 A50 ETFs. There are 4 ETFs with dividend themes, namely Taikang CSI Dividend Low Volatility ETF, GF CSI Dividend ETF, E Fund Hang Seng Hong Kong Stock Connect High Dividend Low Volatility ETF and Wanjia CSI Dividend ETF. There are two technology-themed ETFs, namely ChinaAMC CSI All Index Information Technology ETF and CSI All Index Computer ETF. In addition, the Bosera SSE 30-year Treasury Bond ETF is also worth paying attention to, because it is in line with the current hot spot of long-term bond investment theme, which makes the fund's fundraising scale relatively high.

Since the beginning of this year, the total number of newly issued ETFs has reached 44, with a total of 31.344 billion shares issued and an average of 712 million shares. Among them, there are 37 equity ETFs, with 25.03 billion shares issued, with an average of 676 million shares, accounting for about 80%, and although there is only 1 bond ETF, its issued shares reach 4.812 billion shares, accounting for 15.35%; There are 6 QDII ETFs, with 1.502 billion shares issued, accounting for 4.79%, and an average of 250 million shares.

The technology and bonus themes remain mainstream

Brokerage China reporters observed that among the newly established ETFs this year, the technology theme and dividend theme are still popular for investment, while the technology theme covers multiple sub-categories such as chips, semiconductors, robots and computers.

Why have technology and dividend themes become popular tracks for ETF issuance? This is closely related to the good news and good market performance of related sectors. On the news front, the emergence of new AI products such as Sora and Kimi has once again stimulated the market's attention to these sectors. In terms of market performance, as of April 18, the CSI Dividend Index has risen by 14.56% this year, and the high-dividend strategy has attracted widespread attention.

In a volatile market environment, technology and dividend themes can provide diversified market exposure. Technology ETFs are suitable for investors looking for growth, while dividend ETFs are more suitable for those looking for a steady income. This diversity of demand has driven the concentration of these two types of ETFs. Institutions are also optimistic about future investment opportunities in these two themes.

Regarding the theme of technology, Shen Ruoyu, fund manager of China Universal Asset Management, said that since the advent of GPT technology at the end of 2022, there has been a vigorous technology boom around the world, with giants deploying generative artificial intelligence and major domestic manufacturers starting to release their own products one after another. At present, scientific and technological innovation driven by artificial intelligence is undoubtedly an important driving force for industrial transformation. In February of this year, overseas Sora was born and amazed the world again. In the follow-up technology sector, the main line he is optimistic about in the medium and long term is artificial intelligence, localization of science and technology and going overseas with science and technology.

Regarding the theme of dividends, the research department of Huatai Berry Fund said that in terms of policy orientation, the new "National Nine Articles" have established a future direction at multiple levels such as the issuance system, the market value management of listed companies, and the delisting system, and the standards are more standardized, which fully reflects the political and people's nature of the capital market. Under the "1+N" policy system, more supporting policies will be implemented and improved in the future, focusing on the main line of strengthening supervision, preventing risks, and promoting high-quality development, and building a healthy ecology of the capital market. For the dividend style, it meets the requirements of "strengthening the supervision of cash dividends of listed companies", and it is necessary to pay more attention to the future cash flow and dividend willingness of listed companies, among which high-quality companies have allocation value.

The scale of ETF management continues to expand

ETFs have become more popular as investors become more aware of different investment vehicles and the need to diversify their investments and seek specific investment strategies. From the perspective of management scale, as of April 18, there were 935 ETFs in the market, with a net asset value of more than 2.4 trillion yuan, constantly breaking through record highs.

A head of the marketing department of a leading public offering in Shanghai said that ETFs have many advantages as a tool-based product.

Specifically, the first is the convenience and flexibility of investment. ETFs allow investors to buy and sell as if they were ordinary stocks, providing a high degree of liquidity and transparency, and the ease of trading attracts a wide range of individual and institutional investors.

The second is low cost. ETFs typically have lower management fees and transaction costs than traditional mutual funds. This makes ETFs the preferred choice for cost-sensitive investors.

The third is diversification and risk diversification. ETFs are able to cover a variety of asset classes, including stocks, bonds, commodities, and even more complex investment strategies and themes, such as ESG (Environmental, Social and Governance) and Smart Beta strategies. This diversity allows investors to achieve a wide range of asset diversification through a single transaction.

Fourth, regulatory support. ETFs have received regulatory support, and Chinese regulators have actively promoted the reform and opening up of the capital market, continuously improved ETF-related regulations, and enhanced market attractiveness and international competitiveness.

Fifth, the maturity of the market has gradually improved. With the advancement of market education and the deepening of investors' understanding of financial products, more investors are beginning to recognize the value of ETFs in asset allocation.

A fund researcher in southern China believes that in the future, China's ETF market may show several trends.

First, the number of innovative and thematic products has increased. As the market becomes more diverse, more thematic and innovative products will be launched, such as ETFs for specific industries, such as technology, healthcare, etc., or for specific strategies, such as quants, factor investments, etc.

The second is international development. The Chinese market will continue to attract foreign investment, and at the same time, it is likely to see more Chinese ETF products oriented to the international market, especially with the success of the "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong Stock Connect", more similar mechanisms may be launched in the future to promote the international interconnection of capital markets.

The third is technology-driven change. Technology will play an even more important role in the ETF market, including improving the quality of investment decisions through artificial intelligence and big data.

Fourth, the growth of enhanced ETFs and actively managed ETFs. As the market matures and the regulatory framework improves, actively managed ETFs or enhanced ETFs may gain more room to grow, providing returns that outperform traditional indices.

Editor-in-charge: Wang Yunpeng

Proofreader: Wang Jincheng