Capital Migration: Equity and Commodity ETFs Face Selling, These Products Reverse the Trend and Attract 22.7 Billion Yuan, Haitong Fund Becomes the Big Winner | ETF Weekly Report

From March 23 to March 27, A-shares experienced wide fluctuations, with major stock indices declining across the board. The CSI 300 Index fell 1.41% for the week, the CSI A500 Index dropped 1.04%, and the STAR Market 50 Index decreased by 1.33%. Hong Kong stocks continued to adjust this week, with the Hang Seng Index down 1.29% and the Hang Seng Tech Index falling 1.94%.

This week, A-shares and Hong Kong stocks declined together, leading to a significant migration of funds in the ETF market. Amid rising risk aversion, capital has exited the stock and commodity markets, with equity and gold ETFs being the hardest hit. Particularly, the previously flourishing gold ETFs have consistently topped the shrinkage list for the past two weeks, with their scale growth this year also seeing a significant decline. Currently, only the Hua An Gold ETF has seen a growth of over 10 billion yuan this year.

In stark contrast, bond ETFs have risen against the tide, attracting more than 22.7 billion yuan in a single week, becoming a “safe haven” that funds are vying for in the volatile market. Hai Futong Fund, benefiting from the strong performance of bond ETFs, has seen its scale increase by over 13 billion yuan in the past two weeks, making it the most dazzling “winner” during the recent market adjustment.

Bond ETFs grow by 22.718 billion yuan against the trend

This week, the equity and commodity markets continued to experience significant fluctuations, while the bond market welcomed a rebound. The total scale of the ETF market shrank by over 60 billion yuan this week, falling to 5.04 trillion yuan. In terms of quantity, Wind data shows that as of March 28, three new ETFs were added this week, including one equity ETF and two cross-border ETFs; thus, the total number of listed ETFs reached 1,459.

Specifically, aside from the growth of bond ETFs by 22.718 billion yuan this week, all other major classifications of ETFs saw a decline. Equity ETFs and cross-border ETFs shrank by 43.293 billion yuan and 12.935 billion yuan, respectively, as risk-averse funds continued to flow out of equity products; commodity ETFs shrank again by 26.898 billion yuan this week, with profit-taking demands still strong; and money market ETFs slightly shrank by 0.935 billion yuan.

Since the beginning of the year, as of March 28, the total shrinkage of all market ETFs has reached 987.874 billion yuan. Among them, equity ETFs have shrunk by 939.339 billion yuan, bond ETFs have decreased by 72.43 billion yuan, and cross-border ETFs have shrunk by 30.89 billion yuan. Conversely, commodity ETFs have grown by 54.821 billion yuan, and money market ETFs have slightly shrunk by 0.36 billion yuan.

SGE Gold 9999 Index-linked ETFs shrink by over 24 billion yuan for two consecutive weeks

Regarding ETF-linked indices, the scale of major stock index-linked ETFs continued to shrink this week, with only three indices among the top 20 showing scale growth.

Specifically, the three leading indices that saw growth in linked ETF scale this week were the STAR Market 50, the China Internet 50, and the Hong Kong Stock Connect Innovative Drug Index, with the latter seeing the largest growth at 1.866 billion yuan.

On the other hand, this week, the SGE Gold 9999 Index-linked ETFs shrank by over 24 billion yuan again, becoming the “shrinkage king” for two consecutive weeks, as the demand for capital exit remains strong. In terms of stock indices, the CSI 300 and CSI A500 Index-linked ETFs shrank by over 4 billion yuan, and the Hong Kong Stock Connect Internet Index shrank by nearly 3 billion yuan.

From the perspective of year-to-date changes, the CSI 300 Index-linked ETFs have shrunk by 623.14 billion yuan, with the latest scale being 562.417 billion yuan; the CSI 1000 and SSE 50 Index-linked ETFs have shrunk by 137.587 billion yuan and 109.524 billion yuan, respectively. On the other hand, the SGE Gold 9999, subdivided chemicals, and Hang Seng Tech Index-linked ETFs have still seen year-to-date scale growth exceeding 10 billion yuan, at 42.128 billion yuan, 22.991 billion yuan, and 16.21 billion yuan, respectively.

Hai Futong Fund’s scale has surged by over 13 billion yuan in the past two weeks

In terms of management institutions, this week, only four of the top 20 managers achieved scale growth in ETFs: Southern Fund, Harvest Fund, Yinhua Fund, and Hai Futong Fund. In ranking, there was little overall change, with only Bosera Fund reclaiming the 8th position from GF Fund, while other rankings remained unchanged.

A notable trend this week is that institutions with larger bond ETF scales performed excellently, notably Hai Futong Fund, which saw its ETF scale increase by 5.453 billion yuan last week and another 7.712 billion yuan this week, totaling over 13 billion yuan in growth over the past two weeks, making it the “most eye-catching” recently; additionally, Yinhua Fund’s ETF scale has also increased for two consecutive weeks, although the growth amount is not significant. Southern Fund and Harvest Fund’s ETF scales ended their continuous decline this week, growing by 1.213 billion yuan and 2.179 billion yuan, respectively.

On the other hand, Huaxia Fund’s ETF scale shrank by 12.891 billion yuan this week, with E Fund and Hua An Fund both shrinking by over 9 billion yuan, and Guotai Fund, GF Fund, and Bosera Fund all shrinking by over 5 billion yuan, as these institutions generally have larger gold ETF scales.

In terms of year-to-date scale changes, as of now, only two institutions have seen ETF scale growth exceeding 10 billion yuan, with Hai Futong Fund growing by 29.798 billion yuan and Guotai Fund by 19.862 billion yuan. On the other hand, Huaxia Fund, E Fund, and Huatai-PineBridge have all seen ETF scale shrinkages exceeding 200 billion yuan, amounting to 26.6837 billion yuan, 24.1988 billion yuan, and 21.0602 billion yuan, respectively; additionally, Southern Fund and Harvest Fund’s ETF scales have shrunk by 127.271 billion yuan and 111.579 billion yuan year-to-date.

Only one remaining product has seen a scale growth exceeding 10 billion yuan this year.

Among top products, there are still only two that achieved scale growth this week in the top 20. The ranking changes this week primarily stemmed from gold ETFs, with the Bosera Gold ETF dropping from 13th to 14th place, the E Fund Gold ETF dropping one place to 16th, and the Guotai Gold ETF dropping two places to 18th.

Specifically, all top 10 products saw scale shrinkages this week, with only the E Fund China Concept Internet ETF ranked 15th and the E Fund STAR Market 50 ETF ranked 20th achieving growth, increasing by 0.087 billion yuan and 0.459 billion yuan, respectively.

This week, gold ETFs collectively shrank again, with the Hua An Gold ETF shrinking by 9.402 billion yuan, becoming the “shrinkage king” for two consecutive weeks. In addition, the Guotai Gold ETF, Bosera Gold ETF, E Fund Gold ETF, and GF Fund’s Hong Kong Stock Connect Internet ETF all shrank by over 3.7 billion yuan.

In terms of year-to-date scale changes, following the recent two weeks of continuous shrinkage, only one product has seen year-to-date scale growth exceeding 10 billion yuan, which is the Hua An Gold ETF, with the year-to-date growth amount dropping to 13.968 billion yuan. Furthermore, the Guotai Gold ETF, Bosera Gold ETF, and E Fund Gold ETF have seen respective growths of 9.646 billion yuan, 6.143 billion yuan, and 4.951 billion yuan.

On the other hand, there are still five products with year-to-date shrinkages exceeding 100 billion yuan, including Huatai-PineBridge CSI 300 ETF, E Fund CSI 300 ETF, Huaxia CSI 300 ETF, Huaxia SSE 50 ETF, and Harvest CSI 300 ETF, with year-to-date shrinkages of 218.491 billion yuan, 160.845 billion yuan, 137.095 billion yuan, 107.707 billion yuan, and 102.893 billion yuan, respectively.

Daily Economic News