Core Viewpoint - The ETF-FOF market is experiencing significant expansion after a three-year hiatus, driven by a recovering market and the growth of ETF assets exceeding 5 trillion yuan [2][6]. Group 1: ETF-FOF Market Overview - As of September 5, 12 institutions have filed for 17 ETF-FOF products, with 16 expected to be launched by 2025 [2][4]. - Major fund companies like Ping An Fund and China Merchants Fund are actively participating, with Ping An Fund alone filing for at least four ETF-FOF products [2][4]. - The current trend indicates a shift from traditional FOFs, which primarily invested in actively managed funds, to ETF-FOFs that focus on passive index funds [3][6]. Group 2: Product Characteristics and Performance - ETF-FOFs are defined as public FOF products that allocate over 80% of their non-cash underlying assets to ETFs [3]. - Recent products include the Xingzheng Global Yingfeng Multi-Asset Allocation ETF-FOF, which has a target investment in equity assets of 60%-95% and a minimum of 80% in public funds [3]. - Two ETF-FOFs have been established since Q2 2025, each with a scale exceeding 500 million yuan and nearly 10,000 effective subscriptions [3][5]. Group 3: Market Drivers and Trends - The resurgence of the ETF-FOF market is attributed to favorable market conditions and the increasing scale of ETFs, which now exceed 5 trillion yuan and include over 1,200 products [6][7]. - The advantages of ETFs over traditional actively managed funds include lower costs, higher efficiency, and greater transparency, which enhance the appeal of FOF products [7]. Group 4: Challenges and Future Outlook - The rise of ETF-FOFs necessitates higher asset allocation capabilities from fund managers, who must navigate a complex array of ETF products [8]. - The current market environment poses challenges for asset rotation, with potential issues such as liquidity constraints and tracking errors in some ETFs [9]. - As the number of ETF-FOF products increases, there may be a risk of homogenization, emphasizing the need for strategic innovation and differentiation [9].