Core Insights - The recent surge in cross-border ETFs, particularly Brazilian ETFs, has attracted significant investor interest, with two ETFs being fully subscribed within a day, raising a total of approximately 5.137 billion yuan [1][3]. Group 1: Market Performance - The Brazilian IBOVESPA index has shown a 10-year annualized return exceeding 12%, comparable to the S&P 500, and has increased by 24.98% year-to-date [5]. - The total scale of cross-border ETFs has approached 900 billion yuan, with a rapid growth from approximately 565.5 billion yuan at the end of Q2 to about 884 billion yuan at the end of Q3 this year [3]. Group 2: Investment Trends - The popularity of Brazilian ETFs is part of a broader trend, with previous ETFs like the Southern Fund's Saudi Arabia ETF also experiencing significant subscription success [3]. - Investors are increasingly looking to global markets for opportunities, as evidenced by the strong performance of the Brazilian stock market compared to the Chinese market over the past decade [7]. Group 3: Economic Factors - Brazil's high interest rates, currently at 15%, are among the highest globally, attracting foreign investment despite potential economic growth constraints [10][12]. - The Brazilian ETF market is projected to see a cumulative net inflow of approximately 6.25 billion reais (about 1.167 billion USD) by 2025, with fixed income ETFs contributing significantly to this inflow [9].

Core Insights - On November 4, Huaxia Fund announced the launch of the Huaxia Bradesco Brazil Ibovespa ETF (QDII) on October 31, which exceeded its fundraising cap of 300 million yuan on the first day of subscription [1] - The allocation ratio on the first day was 11.53867900%, rounded to 11.54%, indicating a strong demand for the ETF [1] - It is estimated that approximately 2.6 billion yuan was subscribed for the ETF on October 31 [1] - This ETF is one of the first two Brazilian ETFs launched, alongside the E Fund Itaú Brazil Ibovespa ETF, which also reached its fundraising cap on the same day [1]