Core Viewpoint - The ETF market is facing significant challenges due to low liquidity and a high number of ETFs struggling to maintain their scale, leading to potential liquidation risks for many funds [2][3][4]. Group 1: Current Market Situation - Over 180 ETFs have daily trading volumes below one million yuan, with some even below ten thousand yuan, indicating a liquidity crisis [2][3]. - As of June 5, among 1179 ETFs, 147 have assets below 50 million yuan, and 39 have assets below 20 million yuan, with some ETFs having only a few hundred thousand yuan [3][6]. - The liquidity of ETFs is critical, especially during market volatility, as low liquidity can lead to "liquidity exhaustion" [4][5]. Group 2: Competitive Landscape - The ETF market exhibits a significant disparity in scale, particularly among core broad-based indices like the CSI 300 ETF, where the top four ETFs exceed 100 billion yuan, while many others struggle to reach 10 million yuan [6][7]. - The head effect is pronounced, with larger ETFs attracting more capital, while smaller ETFs often go unnoticed, leading to a continuous decline in their scale [7][8]. - Many fund companies are facing intense competition and are unable to cover costs, with a significant portion of ETFs operating at a loss [8]. Group 3: Need for Differentiation - Industry experts emphasize the necessity for fund companies to pursue differentiated strategies rather than blindly entering the ETF market [8][9]. - There is a call for innovative product designs that cater to specific investor needs, such as stable income products for insurance funds, and the development of thematic ETFs [9]. - The potential for innovation in ETF products is vast, with strategies like options for downside protection and transparent active ETFs gaining traction in overseas markets [9].