Core Viewpoint - The ETF market is experiencing a significant disparity, with some ETFs showing high trading volumes while many others face low liquidity and potential liquidation risks [1][5]. Group 1: ETF Market Performance - On June 10, certain ETFs like the Hong Kong Innovative Drug ETF and the Hang Seng Technology ETF had trading volumes exceeding 10 billion yuan, while over 500 ETFs had trading volumes below 10 million yuan [1]. - A total of 513 ETFs had trading volumes below 10 million yuan on June 10, with 129 ETFs trading below 1 million yuan [4][3]. - The concentration of market resources is evident, with the top ten ETFs accounting for nearly 40% of the total market size, while over 20% of ETFs have sizes below 100 million yuan [5]. Group 2: Liquidity and Risk Factors - The number of ETFs with net asset values below 50 million yuan has been increasing, indicating higher liquidity and liquidation risks [2][5]. - Analysts emphasize that low liquidity can lead to a vicious cycle where smaller ETFs struggle to attract investors, further diminishing their liquidity and increasing the likelihood of liquidation [5]. Group 3: Strategies to Enhance Liquidity - Fund companies are increasingly adding liquidity providers to improve ETF trading efficiency and attract more investors [7][8]. - The introduction of liquidity providers aims to reduce bid-ask spreads and enhance trading volumes, which can lead to scale effects [7][8]. - Improving liquidity is seen as essential for enhancing investor experience and attracting long-term capital [9]. Group 4: Recommendations for ETF Companies - Companies are advised to focus on product differentiation to avoid homogeneous competition, including not launching new ETFs in crowded index spaces and innovating product offerings [12][13]. - Providing value-added services, such as investment strategy reports and interactive investor engagement, can enhance investor experience and loyalty [13][14]. - Companies should also consider lowering management fees through increased ETF scale and exploring new themes like ESG and digital economy ETFs to meet diverse investor needs [14].