China Fund News reporter Fang Li and Sun Xiaohui
In 2023, the number and scale of products in the domestic ETF market reached a new high, and various types of funds entered the market through ETF. The net inflow of non-monetary ETF reached 5696 in the whole year.Freecryptogamesforpc7.6 billion yuan.
As the concept of index investment becomes more and more popular and the instrumental attribute of ETF is recognized by more and more investors, the investor base of ETF has maintained rapid growth, with the number of ETF market holders in Shenzhen reaching 3.28 million, an increase of 16% over the end of 2022. The overall trading in the ETF market was active, with the total transaction volume breaking through 27 trillion yuan, a record high.
In order to comprehensively review the investor structure, market transaction, market performance, capital inflow and outflow and Shenzhen liquidity service business of the domestic ETF market in 2023, and reveal the characteristics of ETF investment and trading, the Fund Management Department of Shenzhen Stock Exchange jointly compiled the White Paper on ETF Investment and Trading (2023), including Tianhong Fund, China Merchants Fund, Jingshun Great Wall Fund, Castrol Fund, Cathay Pacific Fund and Huaan Fund. Provide reference for the market and investors.
The number of ETF holders continues to grow
More than half of the shares held by individual investors
In recent years, the concept of indexed investment has become more and more popular, and more and more investors choose to use ETF, which is a low rate, high liquidity and low threshold.FreecryptogamesforpcInvestment vehicles participate in on-site investment. The number of ETF market holders has maintained a long-term trend of increasing year by year.
By the end of 2023, the number of ETF holders in Shenzhen had reached 3.28 million (unpierced linked funds), an increase of 16% over the end of 2022 and 6% over the end of 2018.Freecryptogamesforpc.5 times.
From the perspective of regional distribution, the holding scale of individual investors in Shenzhen ETF is larger in the areas with high per capita GDP and more disposable income. By the end of 2023, individual investors in Shenzhen ETF were mainly concentrated in the eastern coastal areas, with the top three holding areas in Guangdong, Shanghai and Beijing, with a high proportion of more than 30 per cent in Jiangsu, Zhejiang and Shanghai.
Based on the holding structure of penetrating linked funds, as of the end of 2023, ETF holders are still dominated by individual investors. Among them, the total held by individual investors was 1.060526 trillion yuan, accounting for 50.87%, an increase of 1.48% over the end of 2022. The holding of non-monetary ETF totaled 1.013346 trillion yuan, accounting for 1.93% less than at the end of 2022. Individual investors are more likely to hold ETF directly, totaling 747.94 billion yuan, up 4.71% from the end of 2022. Of this total, the total size of direct holdings of non-monetary ETF was 700.76 billion yuan, accounting for 5.39% more than at the end of 2022.
Institutions and individuals prefer broad-based and industry-themed ETF respectively
Individual investors account for a high proportion of commodity ETF.
From the perspective of domestic stock ETF, by the end of 2023, institutional investors held a high proportion of broad-based ETF, with a total holding size of 447.677 billion yuan, accounting for 53.01%, mainly including Shanghai and Shenzhen 300ETF, gem ETF, Science and Technology Innovation Board 50ETF, CSI 500ETF and other mainstream varieties.
Individual investors hold the highest proportion of industry-themed ETF (that is, ETF that tracks industry index and theme index), with a total holding scale of 384.359 billion yuan, accounting for 66.42%, mainly including medical and pharmaceutical companies, securities companies, chip semiconductors and other three major industries and themes.
In terms of product categories, the proportion of individual investors holding ETF of commodity type, cross-border stock type, domestic stock type, currency type and bond type (penetrating the holding structure of linked funds) decreased successively, to 73.83%, 62.75%, 54.42%, 22.82% and 6.37%, respectively. Individual investors account for a high proportion of commodity ETF represented by gold ETF, which reflects the pursuit of anti-risk assets in the process of equity market fluctuations.
The activity of market transaction increases.
ETF has a significant liquidity advantage.
The instrumental attribute of ETF products is gradually recognized by investors, and the transaction activity continues to improve.
In 2023, the total turnover of ETF was 27.58 trillion yuan, an increase of 467 million yuan over 2022, of which the total turnover of non-monetary ETF reached 20.22 trillion yuan, a record high. Among them, the incremental contribution turnover of newly listed ETF products is 590 billion yuan, and that of stock ETF products is 4.08 trillion yuan.
The average daily turnover rate of ETF in 2023 was 6.39%, significantly higher than in the stock and bond markets. From the point of view of the turnover rate of ETF products and underlying index stocks, the overall average turnover rate of ETF (17 times) is significantly higher than that of the underlying index stocks (about 2 times).
Stock ETF leads the way in transaction
The activity of bond ETF increases significantly.
In 2023, the activity of various types of ETF trading continued to differentiate. Compared with 2022, the total turnover of stock ETF, bond ETF and cross-border ETF increased in varying degrees, while the total turnover of currency ETF and commodity ETF decreased.
Specifically, the annual turnover of stock ETF reached 10.99 trillion yuan, accounting for 39.85%, down from 2022. The annual turnover of bond ETF reached 4.53 trillion yuan, surpassing cross-border ETF and accounting for 16.43% of the total, up from 7.18% in 2022. Cross-border ETF trading activity also increased significantly, with an annual turnover of 4.33 trillion yuan. The annual turnover of currency ETF and commodity ETF continued to decline, at 7.37 trillion yuan and 360 billion yuan respectively.
The wide-base index with relatively scattered industry distribution has become a choice for more investors. For the whole year, the annual turnover of wide-based ETF in 2023 reached 5.84 trillion yuan, exceeding the industry theme ETF of 4.87 trillion yuan.
In 2023, in the overall downward environment of interest rates, bond-based ETF as an alternative tool for cash management increased attention, although the number is limited (19), but the transaction activity increased most obviously. The total turnover of bond ETF in 2023 increased rapidly from 1.65 trillion yuan in 2022 to 4.53 trillion yuan in 2023, the average turnover of products also increased to 240 billion yuan from 100 billion yuan in 2022, and the average turnover rate also increased significantly.
Net inflow of non-monetary ETF reaches an all-time high
Wide base ETF becomes the main force of capital inflow.
In 2023, the A-share market continued to fluctuate, and the scale of ETF expanded against the trend. The overall net inflow of funds into the non-monetary ETF market in the whole year was 569.676 billion yuan, with a net inflow of funds for three consecutive years, and the inflow reached a record high.
ETF achieved net capital inflows as a whole, mainly from the contribution of equity-based ETF, of which broad-based ETF became the main force of capital inflows, accounting for 64 per cent of the net inflows for the whole year.
In terms of products with the top net inflows, broad-based ETFs are represented by the Shanghai and Shenzhen 300, Science and Technology Innovation 50, and GEM ETFs. As an important tool for funds to counter the trend, they will increase their holdings significantly in 2023. Industry-themed ETFs are mainly concentrated on the two tracks of technology and medicine. As the two tracks experience a major correction in 2023, the corresponding industry-themed ETFs will attract continued inflows of funds. Cross-border stock ETFs are mainly concentrated in the Hang Seng Internet ETF, Hang Seng Technology ETF and Hang Seng Medical ETF, which track the Hong Kong stock market. The Hong Kong stock market has continued to weaken in the past three years, and the valuations of major indices have returned to historically low positions, thus attracting a large amount of capital inflows.
In terms of products with the highest net outflow, currency ETFs will lead the net outflow of funds in 2023. In terms of equity ETFs, products such as infrastructure dragged down by real estate and coal ETFs with significant excess returns will experience net outflow of funds.
Service providers are close to full coverage
ETF liquidity service business is highly concentrated
In 2023, the coverage rate of liquidity service providers for Shenzhen ETF products will continue to increase. As of the end of 2023, the number of ETFs covered by liquidity service providers in Shenzhen has reached 348, with a coverage rate of 99%, an increase of 4% from 2022.
At present, the vast majority of ETFs providing liquidity services are covered by the top ten liquidity service providers. As of the end of 2023, there are 7 liquidity service providers covering more than 100 Shenzhen ETF products, namely CITIC Securities, Guangfa Securities, Huatai Securities, Founder Securities, CITIC Construction Investment Securities, China Merchants Securities and Haitong Securities. Among them, the product coverage of the top five mobility service providers has reached 99.42%, and the product coverage of the top ten mobility service providers has 100%.
The average number of liquidity service providers in Shenzhen ETF increased from 2.44 at the beginning of 2019 to 5.29 at the end of 2023. Among them, the number of ETFs cooperating with more than 5 liquidity service providers has increased from 2 at the beginning of 2019 to 128 at the end of 2023, accounting for 37% of the total number of ETFs in Shenzhen, basically covering all key categories and key varieties.
At the end of 2023, the average daily turnover of existing ETFs in Shenzhen increased to 21.6 billion yuan, and the average daily turnover of a single product also increased to 62 million yuan. Compared with 2022, the average daily turnover in 2023 will increase by 38.64%, and the liquidity growth will be very significant.
In December 2023, in order to further enhance the liquidity of the Shenzhen EFT market, the Shenzhen Stock Exchange launched the fund master liquidity service provider mechanism, which will designate qualified securities companies or theirfreecryptogamesforpcAs the main market makers, other institutions can obtain higher-quality buying and selling quotation services and enhance the activity of the ETF market and price stability.
In 2023, the Shenzhen Stock Exchange's main liquidity service provider mechanism will be implemented for a total of 10 days, and a total of 8 products from 4 ETF managers will be introduced into the system. In the future, more ETF products will be introduced into the main liquidity service provider mechanism to better play the role of liquidity service providers in providing liquidity.
Editor: Captain
Reviewed by: Muyu