Data source: Wind (as of Oct. 19) Li Shuchao / tabulation worm creativity / officers and soldiers / cartography

Li Shuchao, a reporter from the Securities Times.

With the expansion of the total size of the stock traded open index fund (ETF) market and the increase in the proportion of individual investors, the turnover and market activity of equity ETF continue to rise in the A-share market with accelerated structural rotation this year. As of October 19, the total turnover of the 523 equity ETF in the market so far this year reached 6.7 trillion yuan, exceeding the total transaction volume of 6.64 trillion yuan in the whole of last year and setting a record high.

Equity ETF

Total turnover hit a new high

Since the beginning of this year, the total number of equity ETF (including stock ETF+ cross-border ETF, excluding commodity ETF) has exceeded 500, the management scale has exceeded 900 billion yuan, and the overall activity of the ETF market is also fluctuating higher. Wind data show that as of October 19, the total turnover of 523 equity ETF in the market so far this year was 6.7 trillion yuan, exceeding the total transaction volume of 6.64 trillion yuan for the whole of last year and setting a record high.

Talking about the phenomenon of a sharp rise in trading volume in the equity ETF market, a stock ETF fund manager in Beijing analyzed that the turnover and turnover rate of stock ETF products are important indicators of product activity, and the change of total turnover is mainly affected by the total size of the stock ETF market, holder structure, market changes and other factors.

According to the analysis of the fund manager, first of all, the total size of the stock ETF market is more than 900 billion yuan, and the number of holders exceeds 10 million, which will naturally drive the market to maintain a certain degree of activity; secondly, the increase in the proportion of individual holders who prefer over-the-counter trading in recent years is also conducive to the rise in the total trading volume of this kind of products. Third, since the beginning of this year, the acceleration of the rotation of the A-share market, the transformation of market hotspots and the outstanding structural market may trigger the holders to actively invest and trade, thus enhancing the market activity.

The head of the quantitative investment department of a public offering in Beijing believes that, on the one hand, there are more and more holders of ETF products, which has brought a sharp increase in popularity and trading volume to the ETF market. On the other hand, with the growth of residents' wealth management demand, people's enthusiasm for allocating equity market increases, and because of the large number of stocks and the difficulty of investment, it has become a choice for more and more investors to invest in their preferred direction through the allocation of industry or theme ETF. "liquidity is the vitality of ETF, equity ETF products need to do large-scale, increase market activity, enrich investment strategies, it is possible to occupy a place in the homogeneous product competition."

In fact, since the birth of the first stock ETF product in China in 2004, the ETF market has been growing in the past 17 years, and the number of products and transaction scale as a whole have continued to rise.

Data show that as of October 19, the total size of the equity ETF in the market is 930.402 billion yuan, approaching the trillion mark, and the total transaction value of this kind of products has also increased from 1.1 trillion yuan in 2014 to 6.7 trillion yuan, with a rapid growth momentum.

The liquidity is concentrated to the leading products.

Judging from the transaction data of various products, the largest turnover so far this year is Shanghai and Shenzhen 300ETF, as high as 424.136 billion yuan, while the annual turnover of Shanghai 50ETF and securities ETF has exceeded 370 billion yuan.

Judging from the more interesting daily turnover, the average daily turnover of Shanghai and Shenzhen 300ETF and Shanghai 50ETF exceeded 2 billion yuan, ranking first in the echelon; the average daily turnover of Securities ETF, China Securities 500ETF, Hang Seng ETF and other five products also exceeded 1 billion yuan.

It is worth noting that among the equity ETF products with the highest total turnover, the vast majority are tens of billions of funds, and the leading position and larger management scale of the products provide the basis for the market activity in the market.

"there is a phenomenon of concentration of popular leading products in the stock ETF market, and some stock ETF with first-mover advantages, continuous marketing and rich investment strategies will be easier to grow into leading funds. This kind of products also because of the small transaction impact costs, it is easier to attract institutional funds and large funds to trade, the size and liquidity of the fund is getting better and better, forming a virtuous circle of product development. " The above-mentioned Beijing stock ETF fund manager said.

In view of the trading characteristics of leading ETF products, many public offerings also improve the liquidity and trading activity of the company's products by expanding the size of funds, adding new market makers, optimizing the structure of holders, and so on.

The above-mentioned person in charge of the Beijing public offering quantitative investment department told the reporter that in order to improve the liquidity of stock ETF products, one is to constantly expand the scale of fund management, because scale is the basis of liquidity; second, we can choose key products to increase market makers, and market makers can provide buying and selling orders near the net value of the fund to improve the trading experience of investors. The third is to optimize the holder structure, the increase in the proportion of individual holders can improve the endogenous liquidity of the fund.

He said that the current holders of equity ETF, banks, insurance and other institutional investors are mostly configuration investors, based on long-term investment purposes to configure such products, while individuals, some private equity and other transaction demand is relatively high, the proportion of such investors is rising, which is conducive to improving the overall trading volume and activity of ETF. At the same time, in recent years, with the increase of ETF and the prominence of money-making effect in chip, new energy, technology, photovoltaic and other industries, the proportion of individual investors is also rising rapidly, which plays a positive role in the improvement of market activity.

In the view of the above-mentioned Beijing stock ETF fund managers, stock ETF as a tool product, its purpose is to meet the asset allocation needs of investors. With the overall liquidity growth and activity of the stock ETF industry, it will help to encourage the stock ETF market to continue to grow, encourage public offerings to actively create more innovative stock ETF products, and promote the further vigorous development of the stock ETF market.