Key Insights - The core viewpoint of the report highlights the significant growth of the A-share ETF market, with a year-on-year increase of 81.6% in 2024, indicating a growing influence on the A-share market [1][11][5] - The report draws comparisons with mature ETF markets in the US, Japan, and Taiwan to provide insights for the future development of A-share ETFs [1][11] Group 1: Origin of ETFs - ETFs in the US, Japan, and Taiwan primarily originated from the need to stabilize or rescue capital markets, while A-share ETFs emerged from strategic financial product innovation aimed at enhancing market efficiency [2][12][21] - The first US ETF was launched in 1993 to prevent market crashes, while Japan's first ETF was introduced in 1995 to revitalize the stock market after a prolonged downturn [19][21] Group 2: Growth Correlation with Market Performance - There is a notable positive correlation between ETF growth rates and stock market performance across different regions, indicating that high ETF growth often coincides with rising stock markets [3][12][40] - In the US, significant ETF growth periods were associated with substantial gains in major stock indices, while similar trends were observed in Japan and Taiwan [27][31][38] Group 3: Trends in ETF Types - A global trend towards broad-based ETFs is evident, with increasing proportions of broad-based ETFs in the total ETF market across the US, Japan, and Taiwan [4][43][48] - In the US, the proportion of broad-based ETFs has risen from 45% in 2010 to 65% by 2024, while in Japan, over 95% of the top ETFs are broad-based [43][48] Group 4: Future Development of A-share ETFs - The A-share ETF market is expected to continue growing, with broad-based ETFs likely to dominate, and regulatory authorities increasingly using ETFs as tools for market stabilization [5][12][51] - The report anticipates that dividend-focused ETFs may gain popularity among individual investors, and technology sector ETFs are expected to be overweighted in future allocations [5][12][51]