U.S. funds are an important part of the global fund market, reaching $26 trillion in 4Q23, which is comparable to the all-time market capitalization high in 4Q21. What are the A-shares, Hong Kong stocks, and Chinese concept stocks that the U.S. funds focus on? Do U.S. funds show their ability to select stocks in different regions? What is the overall scale and global layout of U.S. funds? This issue of U.S. fund big data analysis will conduct an in-depth analysis of the above issues based on the fully collected U.S. fund holdings data from Wind.
Wind collects the quarterly NPORT-P position data submitted by all U.S. mutual funds to the SEC, and maintains and updates it as soon as possible. The U.S. funds analysed in this issue are all U.S. mutual funds (including ETFs). For more U.S. fund data, you can view it in Wind Financial Terminal - Global Fund Thematic Statistics (shortcut: GFS).
01 U.S. funds hold A-shares
In the fourth quarter of 2023, the top 3 A-shares held by U.S. funds are Kweichow Moutai, China Construction Bank, and BYD. Comparing the ranking of the market value of stocks held with the ranking of the market value of stocks in circulation over the same period, the US fund focuses on overweighting China Construction Bank, Tsingtao Brewery, and Fuyao Glass.
In the fourth quarter of 2023, the top three U.S. funds to increase their holdings of the A-share market value were China Construction Bank, Kweichow Moutai, and Weichai Power. The stocks with the most holdings in the fourth quarter of '23 showed that the median return of the top 20 A-shares reached 10.37%, which was stronger than the 3.6% yield of the CSI 300 in the first quarter. Among the top 20 A-shares with the most holdings in the fourth quarter of '23, 14 had stronger returns than the CSI 300 in the first quarter, with a relative win rate of 70%.
From the perspective of the industry distribution of A-shares held by U.S. funds, they are mainly concentrated in the financial, industrial and daily consumption industries, accounting for 23.7%, 15.62% and 15.4% of the market value respectively. Compared with the proportion of the total market capitalization of the A-share market in the fourth quarter of 2023, the industries with the most overweight by US funds are finance and daily consumption.
02 U.S. funds hold Hong Kong stocks
The top 3 Hong Kong stocks held by US funds in the fourth quarter of 2023 are AIA, Tencent Holdings, and Alibaba. Comparing the market value ranking of stocks held with the market value ranking of stocks in circulation over the same period, the US fund focuses on overweighting PetroChina, WuXi Biologics, and Cheung Kong Group.
In the fourth quarter of 2023, US funds will focus on increasing their holdings of Hong Kong stocks, and the top three are AIA, Tencent Holdings, and Hong Kong Stock Exchange. Judging from the rise and fall of the most overweight stocks in the fourth quarter of 23 in the first quarter of 24, the median return of the top 20 key overweight Hong Kong stocks was -2.81%, which is very similar to the return of the Hang Seng Index in the first quarter of -2.95%. 10 of the top 20 Hong Kong stocks with the most holdings in Q4'23 had stronger returns than the Hang Seng Index in Q1'24, with a relative win rate of 50%.
The industry distribution of Hong Kong stocks held by US funds is mainly concentrated in optional consumption, finance and information technology, accounting for 25.67%, 25.28% and 17.32% of the market value respectively. Compared with the proportion of the total market capitalization of the overall industry in the Hong Kong stock market in the fourth quarter of 2023, the industries with the most overweight of US funds are optional consumption and information technology.
03 U.S. funds hold Chinese concept stocks
In the fourth quarter of 2023, the top 3 Chinese concept stocks held by U.S. funds are Alibaba, Pinduoduo, and Baidu. Ranking the market value of stock holdings, compared to the ranking of the outstanding market value of stocks in the same period, the U.S. fund significantly overweight Structure Therapeutics.
In the fourth quarter of 2023, the top three U.S. funds focused on increasing their holdings of Chinese concept stocks are Alibaba, Pinduoduo, and Trip.com Group. Judging from the rise and fall of the most overweight stocks in the fourth quarter of 23 in the first quarter of 24, the median return of the top 20 key Chinese concept stocks was -6.71%, which was weaker than the return of the Wind China Concept Stock 30 Index in the first quarter of -0.29%. Only 7 of the top 20 Chinese concept stocks with the most holdings in the fourth quarter of '23 had stronger returns than the Wind China Concept Stock Index in the first quarter of '24, with a relative winning rate of only 35%.
From the perspective of the industry distribution of Chinese concept stocks held by US funds, they are mainly concentrated in the optional consumer industry, accounting for 69.48% of the market capitalization. Compared with the proportion of the total market capitalization of the overall industry in the Chinese concept stock market in the fourth quarter of 2023, the most overweight sector of US funds is healthcare.
04 U.S. funds hold U.S. stocks
The top 3 U.S. stocks held by U.S. funds in the fourth quarter of 2023 are Microsoft, Apple, and Amazon. The U.S. equity market is a highly participatory market for institutional investors, and the distribution of U.S. fund holdings is very similar to that of the S&P 500, and there is no significant overweighting.
In the fourth quarter of 2023, U.S. funds will focus on increasing their holdings of U.S. stocks, and the top three are Microsoft, Eli Lilly, and Broadcom. Looking at the rise and fall of the most overweight stocks in Q4'23 in Q1'24, the median return of the top 20 key overweight U.S. stocks was 12.59%, slightly stronger than the S&P 500's return of 9.85% in Q1. 12 of the top 20 U.S. stocks with the most overweight in 4Q23 outperformed the S&P 500 in 1Q24, with a relative win rate of 60%.
From the perspective of the industry distribution of U.S. stocks held by U.S. funds, they are mainly concentrated in information technology, optional consumption, and health care, accounting for 32.86%, 13.13%, and 12.41% of the market capitalization respectively.
05 U.S. fund size trend
Looking at the overall size trend of U.S. fund mutual funds (including ETF market capitalization), the overall size in the fourth quarter of 2023 exceeded $26 trillion, which is comparable to the high point of market capitalization in the fourth quarter of 2023. By fund classification, equity mutual funds are the largest at over $18 trillion, followed by bond funds at $5.28 trillion and hybrid funds at $2.54 trillion.
In terms of ETF market capitalization, the size of US ETFs in the fourth quarter of 2023 has exceeded $10 trillion, accounting for 38% of the overall mutual fund size. Among them, the size of equity ETFs is 8.33 trillion US dollars, and the rest are mainly bond ETFs with a market value of 1.5 trillion US dollars.
06 U.S. fund asset allocation
According to the data of the fourth quarter of 2023, the distribution of major asset classes of US funds is mainly concentrated in stock assets, accounting for 82.45%, bonds reaching 14.56%, and cash accounting for 2.37%.
07 U.S. fund regional allocation
According to the data of the fourth quarter of 2023, the holdings of US funds are still concentrated in the United States, accounting for 78.74%. The allocation of regions outside the United States is relatively scattered, and the two regions with the largest allocation proportion: Japan and the United Kingdom, also account for only 2.63% and 2.43%. Hong Kong and Chinese mainland accounted for 0.65% and 0.16% respectively, while India accounted for 0.85%.
As shown in the figure below, according to the market value of US funds held outside the United States, Japan has the highest market value of US$438.7 billion, followed by the United Kingdom with US$404.8 billion, and France, Canada, and Switzerland are ranked 3~5 respectively. India ranks 9th with a market capitalization of $142.1 billion. Taiwan ranked 10th with a market value of US$138.6 billion, Hong Kong ranked 12th with a market value of US$107.7 billion, and Chinese mainland ranked 21st with a market value of US$27.8 billion.
Wind collects the quarterly NPORT-P position data submitted by all U.S. mutual funds to the SEC, and maintains and updates it as soon as possible. The U.S. funds analysed in this issue are all U.S. mutual funds (including ETFs). For more U.S. fund data, you can view it in Wind Financial Terminal - Global Fund Thematic Statistics (shortcut: GFS).
GFS (Global Fund Thematic Statistics)
Full coverage of U.S. funds and Hong Kong funds
The net value of the fund, quarterly holdings, and company information are available at a glance
The net value position is updated as soon as possible