Core Viewpoint - The recent surge in small-cap cross-border ETFs has raised concerns about the risks associated with high premium rates, particularly highlighted by the Invesco Great Wall S&P Consumer ETF, which saw a premium exceeding 40% [4][5][10] Group 1: Market Performance - On March 25, the Invesco Great Wall S&P Consumer ETF was suspended due to significant premium rates, which later resumed trading with a daily increase of 4.94% and a premium rate of 42% [5][6] - Other ETFs, such as the Guotai Fund's S&P 500 ETF and the Southern Fund's Saudi ETF, also experienced high premium rates of 22.9% and 11.7%, respectively, with notable daily increases of 6.25% and 2.37% [5][6] - As of March 25, 19 cross-border ETFs had premium rates exceeding 2%, indicating a broader trend of high premiums in the market [4][5] Group 2: Investor Risks - Historical data shows that high premium ETFs typically maintain their premium for an average of only 1.7 days, leading to potential risks of "premium evaporation + net value decline" for investors [10] - Analysts warn that the high premium phenomenon is closely linked to the performance of the A-share market, with increased volatility driving funds into perceived "safe-haven" cross-border ETFs [8][9] - The limited foreign exchange quotas for Qualified Domestic Institutional Investors (QDII) hinder the arbitrage opportunities that could stabilize premium rates, contributing to the persistent high premiums [9] Group 3: Investment Strategy - Investors are advised to be cautious and avoid blindly investing in high premium ETFs, particularly those with premium rates exceeding 10%, and to prioritize larger, more liquid ETFs [9][10] - The Invesco Great Wall Fund has indicated that investors can trade its S&P Consumer ETF in the secondary market, but the Guotai Fund's S&P 500 ETF has suspended subscription services, limiting investor options [9]