Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - The industry and market are increasingly focusing on multi - asset ETFs as an innovative product offering one - stop asset allocation solutions. The report explores the development of US multi - asset ETFs to provide insights for domestic market innovation [2][11]. - US multi - asset ETFs have shown significant growth in recent years, with distinct characteristics such as strong head - effects in scale, rapid development of actively managed products, and extensive application of FOF - type products [2][20][31]. - The development of US multi - asset ETFs offers important lessons for the domestic market, including deepening multi - asset index development, diversifying allocation strategies, and broadening underlying asset investment tools [5]. 3. Summary by Directory 3.1 Two Action Plans Mentioned, Multi - asset ETFs Are Approaching - The "Public Offering Plan" emphasizes increasing the creation of asset - allocation products to meet the needs of investors with different risk preferences and promote the coordinated development of equity and fixed - income investments [8]. - The "Index Plan" proposes researching and launching innovative index products such as multi - asset ETFs and expanding the underlying asset categories of ETFs. Recent releases of multi - asset indices indicate growing market attention [10][11]. 3.2 Analysis of the Development History and Current Situation of US Multi - asset ETFs - In 2005, BlackRock issued the world's first multi - asset ETF in Canada. In 2006, Invesco launched the first US multi - asset ETF. After the 2008 financial crisis, multi - asset ETFs evolved rapidly [13][14]. - As of March 31, 2025, there are 181 multi - asset ETFs in the US market, with a total scale of $36 billion, ranking first globally. However, their scale accounts for only 0.35% of all US ETFs, indicating significant growth potential [18]. - The top three fund managers in terms of management scale are BlackRock, Pacer Advisors, and First Trust Portfolios, with a combined scale ratio of 45.35%. The top ten multi - asset ETFs in terms of fund scale account for 51.26% of the total scale [22][25]. - Actively managed multi - asset ETFs have developed rapidly. As of March 31, 2025, 146 out of 181 multi - asset ETFs are actively managed, accounting for 80.66%. Their issuance has increased explosively since 2021 [31]. - FOF - type products are widely used in US multi - asset ETFs. As of March 31, 2025, 73 out of 181 multi - asset ETFs are marked as FOF - type, accounting for nearly 40%, with a fund scale of $13.041 billion, about 36% of the total [34]. - The expense ratios of US multi - asset ETFs vary significantly. The average expense ratio of all 181 multi - asset ETFs is 0.80%, with actively managed and passively managed products having average expense ratios of 0.83% and 0.69% respectively. The expense ratio has generally remained low since 2016 [5][40]. 3.3 Exploration of the Strategy Classification of US Multi - asset ETFs - **Core Allocation Type**: This is the most common strategy type, further divided into target - risk, macro - strategy, and subjective - allocation subtypes. Target - risk type aims to meet pre - designed risk metrics, with 28 products and a scale of $8.176 billion. Macro - strategy type adjusts asset allocation based on macro - economic analysis, with 12 products and a scale of $0.937 billion. Subjective - allocation type gives investment managers high freedom, with 57 products and a scale of $10.402 billion [44][47][51]. - **Trend - Following Type**: These ETFs use momentum factors or trend - following models for asset allocation. As of March 31, 2025, there are 26 products with a scale of $7.193 billion, accounting for about 20% of the total [54][55]. - **Target - Dividend Type**: These ETFs focus on interest (dividend) income, with 22 products and a scale of $6.384 billion. The average historical dividend rate of 17 products issued before 2024 is 7.20%, much higher than other types [58][63]. - **Option - Strategy Type**: These ETFs add option - based derivatives to underlying assets to change the risk - return characteristics. As of March 31, 2025, there are 36 products with a scale of $2.907 billion, accounting for 8.08% of the total [63][64]. 3.4 Suggestions and Insights - **Investor Suggestions**: Different types of investors can choose corresponding multi - asset ETFs. For example, risk - sensitive investors can choose target - risk type; policy - sensitive investors can choose macro - strategy type; investors seeking stable cash flow can choose target - dividend type; those preferring quantitative strategies can choose trend - following type; and investors interested in alternative strategies can choose option - strategy type [68][69][70]. - **Insights for the Domestic Market**: The domestic market should prioritize using existing multi - asset indices as tracking targets, deepen the development of multi - asset indices, focus on stable strategies and diversify allocation strategies, and broaden underlying asset investment tools to promote the development of multi - asset ETFs [72][73][75].

Core Viewpoint - The number and scale of newly established ETFs in 2023 have surpassed the total levels of 2022, indicating a robust growth trend in the ETF market driven by regulatory support and increasing investor demand [2][3][5]. Group 1: ETF Market Overview - As of July 11, 2023, a total of 184 new ETFs have been established, raising approximately 146.47 billion yuan, exceeding the total for the entire previous year [3]. - Among the new ETFs, stock ETFs dominate with 164 products, accounting for about 65% of the total, while bond ETFs have also seen significant growth with 18 products, making up 34.61% [3]. - Notably, 10 new science and technology innovation bond ETFs have been issued, representing nearly 57% of the bond ETF issuance [3]. Group 2: Diversification and Specialization - The ETF issuance in 2023 reflects a trend towards diversification and specialization, with active issuance in sectors like TMT (Technology, Media, Telecommunications) and healthcare, particularly in innovative drugs [4]. - Smart Beta ETFs, such as those focusing on free cash flow, have seen a surge in issuance, indicating a shift in market investment logic towards high-quality factors [4]. Group 3: Factors Driving ETF Growth - Multiple factors are contributing to the booming ETF market, including policy support from regulatory bodies and a strong demand for fixed-income instruments, particularly bond ETFs [6][7]. - The recent push for scenario-based investment strategies by exchanges has also catalyzed the acceleration of fund allocation towards ETFs [7][8]. Group 4: Future Trends in ETF Development - The future of the ETF market is expected to see increased diversification in asset classes and strategies, with a focus on low-volatility and multi-asset products [10][11]. - Continuous innovation in ETF products, including the development of niche themes and strategies, will provide investors with a broader range of investment options [10][11].

Core Insights - The article highlights a significant shift in investment strategies on Wall Street, favoring diversified asset risk management over concentrated bets on large tech stocks, resulting in strong performance for multi-asset strategies [1][3]. Group 1: Multi-Asset Strategy Performance - Societe Generale's multi-asset portfolio is experiencing its strongest first half since 2008, showcasing resilience even in the face of market uncertainties [2]. - The classic 60/40 stock-bond allocation strategy has shown relative elasticity during the pandemic era, while risk parity strategies have increased by approximately 6% [2]. - Investments in gold have been particularly successful, with portfolios focused on gold seeing gains exceeding 10% this year [2]. Group 2: Challenges for Traditional Concentrated Strategies - Traditional concentrated investment strategies have struggled amid tariffs, fiscal policies, inflation concerns, and geopolitical conflicts, with the S&P 500 index only rising 1.5% since January [3]. - Broader government bond indices have yielded only a 3% return this year, contrasting with the strong performance of diversified portfolios driven by previously overlooked assets [3]. - Developed market stocks outside the U.S. and Canada have risen 14% this year, while the Bloomberg Commodity Index has surged 8%, and gold has increased nearly 30% [3]. Group 3: Investor Sentiment and Behavior - Investors are increasingly embracing asset diversification, with a notable shift in attitudes towards holding assets outside the U.S. [4]. - Recent data indicates that U.S. investors are beginning to accept diversification, as evidenced by significant inflows into ETFs covering a broader range of asset classes, including gold, Bitcoin, and foreign stocks [5]. - In June, stock ETFs attracted approximately $56 billion, surpassing the total inflows of the previous two months, indicating a strong interest in traditional asset classes despite the diversification trend [5].

ETF Industry News Summary - The three major indices collectively rose, with the defense and military sector ETFs leading the gains, including a 5.53% increase in the military leader ETF (512710.SH) and a 5.05% increase in the national defense ETF (512670.SH) [1] - The bond ETF market has accelerated, surpassing 250 billion yuan in total scale, reaching 253.1 billion yuan, with 503 million yuan net inflow this year [2] - New indices are being launched, providing more options for multi-asset ETFs, which are expected to diversify asset allocation and reduce investment risks [3] Market Performance Overview - The A-share market saw all three major indices rise, with the Shanghai Composite Index up 0.82% and the ChiNext Index up 2.63% [4] - The defense and military sector, along with electric equipment and machinery, ranked high in sector performance, with daily increases of 4.8%, 2.69%, and 2.24% respectively [7] ETF Market Performance - The average performance of various ETF categories showed that thematic stock ETFs had the best average increase of 1.30%, while commodity ETFs had the worst performance with an average decrease of 1.55% [10] - The top-performing ETFs included the China Securities 2000 Enhanced ETF (159552.SZ) with a 6.44% increase, followed by the military leader ETF (512710.SH) and the national defense ETF (512670.SH) [13] - The top three ETFs by trading volume were the A500 ETF (512050.SH), the CSI 300 ETF (510300.SH), and the ChiNext ETF (159915.SZ), with trading volumes of 3.826 billion yuan, 3.327 billion yuan, and 3.150 billion yuan respectively [16]

Core Viewpoint - The introduction of multi-asset ETFs is gaining momentum, with new indices being launched to support the development of these investment products [1][4]. Group 1: New Indices and Offerings - The China Securities Index Company announced the upcoming launch of three series of stock-bond constant proportion indices on May 14, which will provide diverse performance benchmarks and investment targets for the market [2]. - The newly announced indices include the CSI A500 Stock-Bond Constant Proportion Index Series, the CSI Cash Flow Stock-Bond Constant Proportion Index Series, and the CSI Dividend Low Volatility Stock-Bond Constant Proportion Index Series, all of which incorporate both stock and bond assets [2]. Group 2: Industry Expectations and Participation - Multiple fund companies are closely monitoring the progress of multi-asset ETFs and are eager to be included in the first batch of pilot programs [3]. - The fund industry expresses high expectations for multi-asset ETFs, which are anticipated to enrich the product line of exchange-listed funds and provide a one-stop asset allocation solution for investors [5]. Group 3: Market Trends and Development - According to a report from CITIC Securities, the increasing complexity of asset allocation in the market, combined with a strong demand for stable returns, presents a significant opportunity for the development of multi-asset ETFs [5]. - The domestic multi-asset ETF market is expected to evolve through different stages, initially focusing on indices with clear performance metrics and simple allocation models, and later incorporating more complex models to meet specific needs [5]. Group 4: Advantages of Multi-Asset ETFs - Guotai Junan Securities highlights that multi-asset ETFs are crucial for achieving diversified asset allocation, offering multiple advantages over single-asset investments, such as risk reduction, improved risk-adjusted returns, and enhanced cost-effectiveness [6].

Core Viewpoint - The recent meeting organized by the Shenzhen Stock Exchange emphasizes the importance of long-term capital as a stabilizing force in the market amidst global stock market volatility caused by U.S. tariff policies. The evolving policies, fundamentals, and market structure in A-shares present new opportunities for long-term capital investment [1]. Group 1: Macroeconomic and Industrial Insights - The internal driving force of the Chinese economy has significantly strengthened, supported by the implementation of various incremental policies leading to a continuous recovery in domestic economic indicators, including the manufacturing and services PMI [1]. - Technological empowerment is making strides in sectors such as integrated circuits, artificial intelligence, and humanoid robots, showcasing the immense vitality of China's technological innovation [1]. Group 2: Support for Long-term Capital - The implementation of the new "National Nine Articles" has effectively supported the healthy development of the capital market over the past year, with long-term funds such as insurance capital, bank wealth management, and various pension funds contributing positively [1]. - The Shenzhen Stock Exchange is developing relevant work plans to facilitate the entry of long-term capital into the market, focusing on product supply, optimizing the environment, and providing targeted services [1]. Group 3: Product and Institutional Enhancements - The Shenzhen Stock Exchange aims to improve the supply of products related to equity and bond funds, enhancing the quality of listed companies and encouraging actions like share buybacks and market value management [2]. - There is a focus on supporting the issuance of more innovative bond products and optimizing index compilation methods for various indices, including the ChiNext and Shenzhen 100 [2]. Group 4: Service Strategies for Long-term Capital - The Shenzhen Stock Exchange is implementing targeted measures to build a service matrix for existing long-term funds, utilizing initiatives like "ETF Lectures" and "Visiting Listed Companies" to communicate the latest policies and services to institutional investors [3]. - There is an emphasis on expanding the sources of long-term capital by promoting investment strategies such as pension and education regular investments, transitioning from promoting single products to promoting investment strategy combinations [3].

Core Viewpoint - The emergence of "new type" institutional investors in popular ETFs indicates a diversification trend in ETF investors, moving beyond traditional financial institutions to include companies from various sectors such as energy, coal, and machinery [2][5][8]. Group 1: New Institutional Investors - New investors in ETFs include companies like Changzhou Zhongyou Petroleum Sales Co., holding 5 million shares of the Huatai Baichuan Shanghai Stock Exchange Science and Technology Innovation Board Comprehensive ETF, and Lingzhi Hengming Energy Co., which holds 30 million shares, representing 2.11% of the market [3][4]. - Other sectors represented among the top holders of ETFs include water products and fire safety, with companies like Beijing Zhongxiao Great Wall Fire Safety Engineering Co. and Jilin Province Xinzhe Network Technology Co. appearing in the top ten holders [4][5]. Group 2: Growth of ETF Market - As of early 2023, the ETF market has approached a scale of 3.8 trillion yuan, with nearly 900 stock-type ETFs totaling around 2.9 trillion yuan [5][6]. - The diversification of ETF investors is a significant trend, with traditional financial institutions being joined by individual investors and various companies, including coal and petroleum sales firms [5][6]. Group 3: Multi-Asset ETFs - The industry is exploring the development of multi-asset ETFs, which are expected to meet the diverse needs of investors, especially in varying market conditions [8][9]. - The introduction of multi-asset ETFs is seen as a response to the declining yields of bond ETFs and the need for new investment options, providing a solution for investors seeking returns beyond traditional bond investments [8][9].

Core Viewpoint - The development of multi-asset ETFs in China is expected to gain momentum due to the demand for stable returns and the availability of diverse underlying tools, with a focus on different stages of development [1][2]. Group 1: Development Opportunities - The demand side is characterized by a declining risk-free return and a high volatility environment, leading investors to seek one-stop, low-cost multi-asset allocation tools [2]. - The supply side shows a well-established layout of multi-asset allocation indices, with a continuous increase in the variety and scale of domestic ETFs [2]. Group 2: Overseas Experience - The U.S. multi-asset ETF market is the most mature, yet it still represents a small proportion of the overall ETF market, with 158 products and a total scale of approximately $39.7 billion as of January 2025 [3]. - The market is highly concentrated, with the top three management firms being BlackRock, Pacer, and Tidal, and the majority of multi-asset ETFs are categorized as allocation-type [3]. Group 3: Domestic Index Development - Currently, the China Securities Index Company has released 79 indices (excluding delisted indices), including 22 style allocation indices, 19 volatility control indices, 8 stock timing indices, and 6 target date indices [4]. - Among style allocation indices, dividend allocation indices are predominant, with 18 indices [4]. Group 4: Representative Indices - The dividend stock-bond allocation index focuses on high dividend yield stocks and high coupon rate credit bonds, with a historical annualized return of 5.08% and an annualized Sharpe ratio of 6.07 since its inception [5]. - The target date index includes A-shares, bonds, cash, and QDII stocks, with a historical annualized return of 10.06% and an annualized Sharpe ratio of 0.65 since its inception [7]. Group 5: Expected Development Stages - The domestic multi-asset ETF development is anticipated to go through three stages: the initial stage focusing on stable performance and clear allocation models, the development stage emphasizing complex allocation models for specific scenarios, and the mature stage featuring a rich variety of multi-asset and multi-strategy allocation indices [8].