Core Viewpoint - The article discusses the recent entry of several large public funds into the ETF market, highlighting a shift in strategy from active equity management to recognizing the importance of ETFs as a significant investment vehicle [3][10]. Group 1: Market Entry and Strategy - Several large public funds, including Xingzheng Global Fund, are preparing to enter the ETF market, indicating a strategic shift [2][6]. - The delay in entering the ETF market by these funds is attributed to their previous focus on active equity strategies, which they are now reconsidering in light of the growing importance of ETFs [3][10]. - The article notes that the ETF market is characterized as a "head game," where large public funds dominate, but there are significant differences in their capabilities and strategies [4][11]. Group 2: Current Developments in ETFs - Recent movements in the ETF space include plans from several large public funds to launch new products, with some already having the necessary systems in place [6][10]. - A notable example includes a public fund planning to launch a technology-related ETF focused on the Hong Kong and Shanghai markets [6]. - The article mentions that the proportion of passive ETFs in the passive equity fund market has increased from 38% to 90% between 2015 and 2024, indicating a strong trend towards passive investment strategies [10]. Group 3: Challenges and Opportunities - The article identifies two fundamental challenges for public funds in the ETF market: establishing a stable and sustainable profit source and finding differentiated strategies to stand out [4][15]. - It is noted that for ETF businesses to be profitable, they typically need to reach a scale of over 100 billion yuan, with individual ETFs requiring at least 1 billion yuan to be viable [15][16]. - The competitive landscape is expected to become more intense, with new entrants having opportunities but facing challenges due to the established presence of larger funds [10][16]. Group 4: Future Trends and Innovations - The article discusses the potential for innovation in the ETF space, including the development of active ETFs that utilize strategies such as options for downside protection and enhanced returns [17]. - Predictions indicate that by 2030, the global active ETF market could grow significantly, driven by the need for differentiated strategies in a competitive environment [17]. - The integration of active management strategies into the ETF framework is seen as a way to meet diverse market demands, particularly in the fixed income sector [17].