The rise of broad-spectrum, high-yield ETFs

GUANGZHOU, China, July 4, 2024 /PRNewswire/ — In the first half of 2024, the A-share ETF market hit a new high, and the market size exceeded US$292 billion, with broad-based ETFs being the main driving force. According to Wind, broad-based ETF assets doubled from US$83 billion in mid-2021 to over US$171 billion, increasing their share from 41% to 59%. At the same time, 25 fund companies launched a total of 84 equity ETFs, an increase of 27 compared with the same period last year, with a combined initial offering size exceeding US$5.8 billion. Among them, E Fund, the largest fund manager in China, led the market with ten new ETF launches.[1] and more than $505,000 in fundraising.

Evolution of assets under management of Chinese equity ETFs

Net flows of Chinese equity ETFs in the first half of 2024

Broad-based A-share ETFs led the way with $54.4 billion in net inflows, taking in over 90% of total net inflows. The top 10 ETFs were all broad-based, mirroring the performance of indices such as the CSI 300, CSI 500, SSE 50, CSI 1000, ChiNext and STAR 50. The E Fund CSI 300 ETF (Stock Code: 510310) ranked first in terms of fund flows. In addition, 23 broad-based ETFs were launched, with the CSI A50 ETF being the most popular. Ten ETFs tracking the CSI A50 index, including the E Fund CSI A50 ETF (Stock Code: 563080), garnered nearly $2.3 billion, accounting for nearly 40% of new issuance this year.

In contrast, high dividend yield ETFs attracted continued inflows of around US$2.1 billion, supported by strong returns. The CSI Dividend Total Return Index and the CSI Dividend Low Volatility Total Return Index posted gains of 11% and 15%, respectively. Riding on this momentum, fifteen high dividend yield ETFs were launched in the first six months of this year, covering high dividend yield assets listed on the A-share and Hong Kong equity markets. Notably, E Fund launched the E Fund Hang Seng SCHK High Dividend Low Volatility ETF (ticker: 159545) in March, which tracked the performance of Hong Kong-listed companies included in Stock Connect, adding to the diversity of onshore investors’ portfolios.

About E Fund

Founded in 2001, E Fund Management Co., Ltd. (“E Fund”) is a leading global fund manager in China with nearly RMB 3.3 trillion[2] (USD 454 billion) under management. It provides investment solutions to onshore and offshore clients, helping them achieve sustainable long-term investment performance. With a long-term focus, it has focused on the investment management industry since its inception and believes in the power of in-depth research and time spent on investing. It is a pioneer and leading practitioner of responsible investment in China and is widely recognized as one of the most trusted and outstanding Chinese asset managers.

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SOURCE E Fund Management

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