httpsscratch| ETF "shadow products" are gradually growing!

Step into AprilHttpsscratchProducts such as Tianhong CSC Shanghai-Hong Kong-Shenzhen Internet of things theme connection Fund, Morgan CSC A50 connection Fund and Huaxia CSC Zhixuan 500 growth and Innovation Strategy connection have been issued one after another. According to Wind statistics, 50 similar products have been launched this year, compared with 23 in the first quarter of last year.

According to a public offering person, when designing ETF products, the company will consider designing the corresponding linked fund at the same time. As a bridge between ETF products and investors, the market demand of linked funds will continue to grow. With the expansion of the linked fund market, more and more public offerings will join the war, and the market competition will become more and more fierce. As a result, tracking mainstream broad bases or linked funds with unique labels may stand out in the future.

ETF "Shadow Product" is growing.

Linked fund is a bridge between investors in over-the-counter channels such as banks and Internet channels and on-site ETF, and can provide convenient tools for over-the-counter investors to participate in over-the-counter ETF investment. therefore, it has also become an important layout category for a wider customer base of public offering fund services. Cathay Pacific Fund said that the ETF linked fund and the target ETF risk-return characteristics are similar, can meet the needs of medium and small investors without securities accounts. When designing ETF products, fund companies will consider designing the corresponding linked funds at the same time.

For public offering to speed up the layout of linked funds, a large public offering channel in South China said, "personally, I think there are many advantages." First of all, for investors, the investment threshold can be lowered, linked funds are usually purchased at 1 yuan, and small investors can also participate in the market; for fund companies, the layout of linked funds is conducive to further enriching the product lines of public offering companies. for different types of investors to provide a richer product toolbox, help to improve the company's market competitiveness and service level. For the ETF industry, the linked fund expands the investor base of ETF, which is conducive to maintaining the stable development of the capital market.HttpsscratchThe embodiment of the continuous maturity and improvement of China's capital market.

"as for deficiencies, although the goal of the linked fund is to closely track the performance of the ETF fund it invests in, it will not be exactly the same," the person said. Due to market volatility, transaction costs, and there will be no more than 10 per cent of cash reserve positions in linked funds, linked funds will be slightly worse than ETF in tracking index movements, which will lead to some differences between the actual returns of linked funds and the performance of target ETF funds. "

So, what are the development prospects of ETF linked funds? A small and medium-sized public offering in North China believes that in the future, with the rapid development of the ETF market and the increasing acceptance of the concept of index investment / passive investment, linked funds as a bridge between ETF products and investors, the market demand will continue to grow. With the expansion of the linked fund market, more and more public offerings will join the war, and the market competition will become more and more fierce. Therefore, public offering should continue to improve the ability of product innovation and customer service quality in order to maintain its competitive advantage.

In addition, tracking mainstream broad bases or linked funds with unique labels may stand out in the future. The company believes, "for example, the popular wide-base index usually has high market attention and large market size, large capital scale and customer capacity, and has the inherent advantages of development and growth." In addition, linked funds with unique investment strategies or labels, such as those investing in rare overseas index targets, unique commodity futures and derivatives, may be able to create a differentiated competitive advantage in the market and attract the attention of investors. "

ETF may shift gear again to increase speed.

It is understood that in the layout, there will be ETF first, and then there will be over-the-counter linked funds. since the beginning of the year, a number of public offering intensive layout linked funds have also reflected the great development of ETF in the past two years. In the National Nine articles issued by the State Council recently, it is proposed to establish a rapid examination and approval channel for traded open index funds (ETF) to promote the development of indexed investment. Passive investment may shift gear again to speed up.

In fact, the excess return created by active investment is highly dependent on a weak efficient market, such as A shares in the past. Fund managers create excess returns through on-the-spot research, data analysis, argumentation and judgment, which not only attracts a large number of funds, but also creates a "generation version of God" star.

"however, A shares are moving towards a strong efficient market, in which all public information is reflected in the stock price quickly and relatively completely. in other words, the basis on which active management can generate excess returns has changed, which is actually one of the core reasons for the accelerated development of ETF." The aforementioned public offering channels in South China believe that.

In fact, the more mature American market has experienced a similar process of development. Over the past decade, 83 per cent of actively managed large-cap funds in the US have lagged behind the S & P 500, according to the S & P Dow. Us index equity funds also reached an inflection point in 2019, surpassing active equity funds for the first time in the history of management.

In addition, the excess creation of active management actually has a certain periodicity. The above-mentioned people said that in addition to the professional investment and research ability of institutional investors, there are also the shareholdings of financial institutions formed by unified aesthetics. Including some smaller active management product style / track switching is more flexible, can re-demonstrate the ability to obtain excess returns in the environment of clear risk and upward market. Whether investors can still trust, and how much trust, is another question. "but this does not mean that index investment will always maintain rapid growth, or even completely replace active products. After all, a mature market must also be diversified."

In terms of the layout of passive products, under the background of homogenization competition, what are the ways in which ETF will stand out on the release side?

A source from a public offering channel in North China told reporters that the first is the ETF that serves the national strategy. Around the national goal of "double carbon", the construction of domestic ESG ecosystem is gradually taking shape, and the concept of ESG and related products are also booming. From a global point of view, the steady development of the ESG ETF market has fully reflected the potential of ESG indexed investment, and more diversified and focused ESG-themed ETF products may appear in China in the future. Second, overseas rights and interests products. Under the continuous downward trend of the domestic interest rate center, high-tech industries in emerging market countries and developed countries have greater investment attractiveness, superimposed interconnection target expansion, QDII quota continues to increase, cross-border products are expected to usher in new development. The third is specific demand type ETF. From the perspective of customer demand, for low-risk investors, their risk aversion properties and liquidity requirements are improving synchronously, and fixed-income ETF may be expected to enter the development fast lane in the future; in addition, for high-risk investors, the attribute of ETF tools is becoming more and more prominent, and the combined ETF is also worth exploring.

This article was first posted on the official account of Wechat: brokerage China. The content of the article belongs to the author's personal point of view and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

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