Large Funds Drive Surge in Broad-Based ETF Trading Volume
Since the beginning of the year, the A-share market has experienced a sluggish trend, but large funds have been actively entering the market, leading to a significant increase in the trading volume of broad-based index ETFs. According to data from Securities Times and Databao, the net inflow of funds into broad-based index ETFs over the past five trading days amounted to 60.389 billion yuan.
Four ETFs related to the CSI 300 Index, namely E Fund CSI 300 ETF, Harvest CSI 300 ETF, Huatai-Berry CSI 300 ETF, and ChinaAMC CSI 300 ETF, each recorded net inflows of over 10 billion yuan.
Compared to the previous week, the trading volume of broad-based index ETFs has witnessed a substantial increase. Since January 15th, the total transaction volume of broad-based ETFs has reached 218.66 billion yuan, marking a 52.04% increase from the previous month.
On January 18th, the trading volume of Huatai-Berry CSI 300 ETF and ChinaAMC SSE 50 ETF exceeded 10 billion yuan, setting a new record high in single-day trading volume since 2016.
Industry insiders suggest that the surge in large capital inflows into broad-based ETFs reflects investor optimism for the market’s overall recovery and restoration of valuations, as well as a strategic shift in their asset positions. Fund managers of E Fund CSI 300 ETF, Yu Haiyan, and Pang Yaping, pointed out that the current A-share market presents favorable opportunities for long-term allocation value.
In terms of thematic index ETFs’ performance, the tourism theme has outshined others. Despite the overall market downturn, tourism-themed ETFs have demonstrated resilience, with ChinaAMC CSI Tourism Theme ETF and Wells Fargo CSI Tourism Theme ETF producing positive returns.
The robust performance of tourism-themed ETFs can be attributed to the surge in domestic holiday travel bookings, indicated by a notable increase in tourist trips and revenue during the New Year’s Day holiday. In contrast, ETFs related to the digital economy and military industry have recorded poor performance since January.
Looking ahead, fund managers are focusing on sectors such as new energy, technology, pharmaceuticals, and consumption, as potential growth opportunities. The surge in ETF shares for themes related to technology further underlines the optimistic sentiment for these sectors.
Overall, the influx of large funds and the surge in ETF trading volumes reflect a renewed optimism in the A-share market, signaling changing investor sentiments and strategic portfolio adjustments.