ETF Industry News - The three major indices mostly rose, with several ETFs in the power equipment sector leading the gains. The grid equipment ETF (159326.SZ) rose by 7.76%, the grid ETF (561380.SH) by 7.18%, and another grid ETF (159320.SZ) by 7.03%. In contrast, several ETFs in the pharmaceutical and biotechnology sector declined, with the Sci-Tech Pharmaceutical ETF (588130.SH) down by 2.21% and the Innovative Drug ETF (517110.SH) down by 2.17% [1] ETF Market Highlights - In the first two weeks of 2026, two ETFs reached the "trillion" mark in size, specifically those managed by Huaxia Fund and the cross-border ETF. This indicates a significant scale in the ETF market, which has accumulated over 6 trillion in assets over 20 years with nearly 60 managers. Major players like Huaxia and E-Fund continue to grow due to scale advantages, while smaller firms leverage differentiated strategies [2] - The number of ETFs included in the "ETF Connect" has expanded to 364, with 98 ETFs officially added to the Northbound Stock Connect. This represents a more than 30% increase from the previous total of 273. A total of 29 fund companies had products included, with Huaxia Fund leading with 14 new ETFs [3] - Recent market dynamics show a significant internal shift in ETF funds, with large redemptions in low-risk products like broad-based ETFs, bond ETFs, and money market ETFs. Conversely, commodity ETFs, cross-border ETFs, and narrow-based ETFs have become key areas for fund inflows, reflecting a shift in investor preferences [4] Market Performance Overview - On January 19, the A-share market showed mixed results, with the Shanghai Composite Index rising by 0.29% to 4114.0 points, while the Shenzhen Component Index rose by 0.09% to 14294.05 points. The ChiNext Index fell by 0.7% to 3337.61 points [5] - In terms of sector performance, the basic chemical, oil and petrochemical, and power equipment sectors led the gains with daily increases of 2.7%, 2.08%, and 1.84%, respectively. In contrast, the computer, communication, and banking sectors lagged behind with declines of -1.55%, -0.96%, and -0.6% [8] ETF Market Overview - The average performance of various ETF categories indicates that commodity ETFs performed the best with an average increase of 1.21%, while cross-border ETFs had the worst performance with an average decline of -1.14% [11] Top Performing ETFs - The top five ETFs in different categories include: - Stock ETFs: Grid Equipment ETF (159326.SZ), Grid ETF (561380.SH), and others [14] - Bond ETFs: Convertible Bond ETF (511380.SH), Shanghai Composite Convertible Bond ETF (511180.SH), and others [14] - Commodity ETFs: Gold ETF (159834.SZ), Gold ETF (518850.SH), and others [14] - Cross-border ETFs: Hong Kong Central Enterprise Dividend ETF (520660.SH), Sino-Korean Semiconductor ETF (513310.SH), and others [15] Trading Volume Statistics - The top three stock ETFs by trading volume were A500 ETF (563360.SH) with 14.083 billion, CSI 300 ETF (510300.SH) with 13.793 billion, and A500 ETF Fund (512050.SH) with 12.891 billion [16][17]

Group 1 - The core viewpoint of the article highlights a significant internal shift in the ETF market, with funds moving away from broad-based ETFs to narrower, high-volatility products [1][2][5] - Year-to-date, over 200 billion yuan has been withdrawn from broad-based ETFs, with 14 ETFs experiencing a net outflow exceeding 30 billion yuan, all of which are broad-based ETFs [2][4] - The largest stock ETF in China has seen its scale drop from 400 billion yuan to 300 billion yuan, while the second-largest has decreased from 300 billion yuan to 200 billion yuan [2] Group 2 - In contrast, narrow-based ETFs, cross-border ETFs, and commodity ETFs have attracted significant inflows, with cross-border ETFs growing by 746.32 billion yuan, surpassing the 1 trillion yuan mark for the first time [4][6] - The South China Nonferrous ETF has become the only product to receive over 10 billion yuan in net inflows this year, driven by rising base metal prices [6][8] - The active trading environment in the A-share market and the structural differentiation in performance have led to increased demand for high-elasticity assets, further supporting the inflow into narrow-based ETFs [7][9] Group 3 - Fund companies focusing on narrow-based ETFs are experiencing significant growth, with companies like GF Fund and Yongying Fund expanding their ETF scales rapidly [7][8] - The current market dynamics suggest that narrow-based ETFs are becoming a key driver of growth in the ETF sector, especially for smaller fund companies looking to compete against larger institutions [9][10] - There is a concern that narrow-based ETFs may be used as speculative tools rather than for long-term asset allocation, which could lead to increased trading costs and volatility for investors [10]

新年伊始，宽基ETF再遭抛售。 抛售宽基ETF，资金流向窄基ETF等高波动产品。 ETF市场暗流涌动，资金正迎来一轮剧烈的内部腾挪。宽基ETF、债券型ETF、货币ETF等低风险品种遭遇大 额赎回，而商品型ETF、跨境ETF及窄基ETF则成为资金涌入的重要方向。 在占据ETF市场半壁江山的股票型ETF赛道，宽基与窄基产品的规模此消彼长，直观反映出当前市场投资偏好 的迁移逻辑。 年内超2000亿元资金抛售宽基ETF Wind数据显示，今年以来，9只非货ETF均遭到超百亿元资金抛售，其中8只ETF为挂钩沪深300、科创50、创 业板、上证50、中证500等宽基指数产品。 如果单纯从股票型ETF角度来看，年内净流出规模超30亿元的14只ETF均为宽基ETF，合计净流出规模超过 2000亿元。 单一ETF来看，国内规模最大的股票型ETF规模从4000亿元跌至3000亿元级别，规模第二大的ETF产品规模从 3000亿元掉落至2000亿元级别。 在多元资产配置工具持续丰富、A股结构性行情走向极致的双重背景下，资金对宽基ETF的配置热情有所降 温。不过，多数业内专业人士认为，这一现象仅是A股市场阶段性结构调整的短期现象，从长 ...

Market Overview - The three major indices experienced fluctuations and declines, with the Shanghai Composite Index down by 0.42%, the Shenzhen Component Index down by 0.68%, and the ChiNext Index down by 0.69. [1][4] - Several ETFs in the state-owned enterprise sector saw increases, including the China State-Owned Enterprise ETF (517180.SH) up by 0.46% and the Central Enterprise Win-Win ETF (517090.SH) up by 0.44%. [1] ETF Market Trends - There has been a significant influx of funds into narrow-based ETFs this year, with a notable increase in industry-themed ETFs. The first batch of seven ETFs tracking the CSI Innovation and Entrepreneurship Artificial Intelligence Index was launched, attracting considerable investor interest. [2] - Among the 18 ETFs that received over 10 billion yuan in net inflows this year, all were narrow-based ETFs, highlighting investor preference for these products. [2] - The top two sectors for net inflows were the Hong Kong Stock Connect Internet ETF and the Securities ETF, which attracted 55.30 billion yuan and 33.42 billion yuan, respectively. [2] ETF Management Fee Competition - The rapid expansion of ETFs has led to increased competition among fund managers, with the top ten ETF managers controlling 4.3 trillion yuan, accounting for 75% of the total market size. [3] - The average management fee for ETFs remains at 0.5%, but there is a growing trend of competition based on fee structures, with E Fund having the highest proportion of low-fee products at 54.9%. [3] Sector Performance - In the latest trading session, the petroleum and petrochemical, light industry manufacturing, and household appliances sectors performed well, with daily increases of 0.71%, 0.55%, and 0.43%, respectively. [6] - Conversely, the media, non-ferrous metals, and computer sectors lagged, with daily declines of -1.75%, -1.36%, and -1.34%. [6] ETF Performance by Category - The best-performing category of ETFs today was the money market ETFs, with an average daily change of 0.00%, while the thematic stock index ETFs had the worst performance with an average decline of -1.02%. [9] - The top three performing stock ETFs included the 5G Communication ETF (515050.SH) with a gain of 0.53%, the 2000 ETF (561370.SH) with a gain of 0.52%, and the Low Volatility Dividend ETF (159228.SZ) with a gain of 0.47%. [11][12] Trading Volume Insights - The top three stock ETFs by trading volume were the A500 ETF (512050.SH) with a volume of 5.413 billion yuan, the CSI A500 ETF (159338.SZ) with 4.434 billion yuan, and the A500 ETF by E Fund (159361.SZ) with 4.378 billion yuan. [14][16]

Core Viewpoint - The public fund industry is experiencing a surge in the issuance of industry-themed ETFs, driven by investors' preference for narrow-based ETFs over broad-based ETFs due to the structural characteristics of the A-share market [2][3][4]. Group 1: Market Trends - On November 28, the first batch of seven ETFs tracking the CSI Innovation and Entrepreneurship Artificial Intelligence Index was launched, with some products selling out on the first day [2][3]. - The total scale of narrow-based ETFs in the stock market has surpassed 1.6 trillion yuan, showing a growth rate of 100%, significantly higher than the less than 10% growth of broad-based ETFs [2][4]. - Investors are increasingly favoring narrow-based ETFs, with 18 ETFs attracting over 10 billion yuan in net inflows this year, all of which are narrow-based [4][5]. Group 2: Investor Behavior - The preference for narrow-based ETFs reflects a shift in investor strategy towards high-growth sectors like AI, semiconductors, and new energy, while traditional sectors like real estate are losing appeal [7][10]. - The trend of investing in narrow-based ETFs is expected to continue as investors seek to capture structural opportunities in high-growth industries [8][9]. - Investors are also utilizing strategies like grid trading and quantitative enhancements to achieve high-frequency trading in narrow-based ETFs, further driving their popularity [7]. Group 3: Performance and Risks - Narrow-based ETFs have shown significant volatility, with some experiencing substantial losses, highlighting the risks associated with concentrated investments [8][10]. - The average turnover rate of narrow-based ETFs is much higher than that of broad-based ETFs, indicating a tendency for investors to frequently adjust their positions [9]. - The concentration of funds in popular narrow-based ETFs can inflate valuations and increase the risk of market corrections, particularly if there is a sudden withdrawal of capital [9][10].

Core Viewpoint - The public fund industry is experiencing a surge in the issuance of industry-themed ETFs, driven by investors' preference for narrow-based ETFs to seek higher returns amid a structurally differentiated A-share market [2][3][4]. Group 1: Market Trends - On November 28, the first batch of seven ETFs tracking the CSI Innovation and Entrepreneurship Artificial Intelligence Index was launched, with some products selling out on the first day [2][3]. - The total scale of narrow-based ETFs in the stock market has surpassed 1.6 trillion yuan, showing a growth rate of 100%, significantly outpacing the less than 10% growth of broad-based ETFs [2][4]. - Investors are increasingly favoring narrow-based ETFs, with 18 ETFs attracting over 10 billion yuan in net inflows this year, all of which are narrow-based [4][5]. Group 2: Investor Behavior - Investors are shifting from "broad allocation" to "precise selection," indicating a move towards industry-themed narrow-based ETFs due to the structural characteristics of the market [7][8]. - The preference for narrow-based ETFs reflects a desire to capture structural opportunities in high-growth sectors like AI and new energy, while broad-based ETFs are seen as less attractive due to their diluted performance from traditional sectors [6][8]. Group 3: Performance and Risks - The performance of narrow-based ETFs has been robust, with significant net inflows into sectors such as internet and securities, while broad-based ETFs have faced substantial outflows [4][5]. - However, narrow-based ETFs are characterized by higher volatility, which can lead to significant losses during market corrections, as evidenced by specific ETFs experiencing declines of over 15% [9][10]. - The concentration of funds in popular narrow-based ETFs may lead to inflated valuations and increased market volatility, raising concerns about the potential for a "herd effect" during market downturns [11][12].

Core Viewpoint - The narrow-based products are becoming the main driving force for the growth of public funds, driven by the segmented demands of investors [1][2]. Group 1: Market Trends - The public fund industry is entering a tool-oriented era, where narrow-based products with distinct styles and specific industry scenarios are key to marketing strategies [2]. - Despite a slight overall redemption in public fund shares, narrow-based products have seen significant growth, indicating a shift in investor preference towards these products [3][4]. Group 2: Performance of Narrow-based Products - Narrow-based products have countered the shrinkage of wide-based ETFs, with significant net subscriptions observed in various narrow-based ETFs during the third quarter [4]. - Specific examples include the Satellite ETF with over 10 times net subscriptions, the Robot ETF with nearly 5 times, and the New Energy Battery ETF with about 8 times [4]. Group 3: Active Equity Funds - Active equity funds are also aligning with narrow-based strategies, with themes like innovative drugs, digital economy, and artificial intelligence leading performance rankings [5][6]. - The top 10 active equity funds are all industry-themed, showcasing a trend towards sector-focused investment strategies [5]. Group 4: Tool-oriented Product Development - The arrival of the tool-oriented era in public funds has led to a consensus that "whoever masters narrow-based products will dominate" [8]. - Fund companies are increasingly focusing on tool-oriented products that cater to specific investor needs, enhancing their competitive edge [8][9]. - The development of tool-oriented products is seen as a response to the challenges of extracting excess returns in an efficient market [9].