Title: Battle for Public Funds Heats Up as Technology-Themed Funds Lead the Way
In the last week of 2023, the ranking battle for public funds has entered a critical period. Judging from the current rankings, technology theme funds are expected to become the annual winners. Wind data shows that so far, technology-themed funds or broad-based index funds account for the majority of the TOP10 or TOP20 performance rankings of more than 10,000 public funds in the market.
Specifically, there is currently one fund with an annualized return of over 65%, 16 funds with an annualized return of between 50% and 60%, and eight funds with an annualized return of between 40% and 50%. From the perspective of product classification, ETFs and QDII are mostly at the top of the list.
Judging from market performance, many types of theme funds performed well last week. Among them, the performance of non-ferrous metals, military industry, new energy and other theme products continued to be strong. However, game theme funds suffered an unexpected setback.
Wind data shows that on December 22, many game ETFs fell by the limit, and many game-themed or entertainment-themed products fell to varying degrees. At present, the game-themed fund with the highest annual return rate is not among the top 30 on the list, ranking only 32nd. This is a big change compared with the situation in the second quarter when game-themed products dominated the entire market list.
However, from the perspective of capital performance, while some funds flowed out of the gaming sector that day, a large amount of funds also entered on dips. Wind data shows that last Friday, there were multiple purchases of more than 50,000 lots of Cathay Gaming ETF. According to price estimates, the transaction volume for every 50,000 lots exceeded 5 million yuan. The daily turnover of this product was as high as 427 million yuan, setting a record A record high. Compared with the average daily transaction volume of this type of theme products of 130 million yuan, the transaction volume exceeded 2 times.
Cathay Fund’s research report believes that some game ETFs attracted a large amount of funds to enter the market last Friday to buy lows. The trading volume of some products exceeded 400 million yuan that day, far exceeding the average trading volume in the past. This reflects that some funds are accelerating to enter the market at low prices.
Judging from the current performance rankings of public funds, in addition to technology-themed funds and broad-based index products, there are also some mining, pharmaceutical and consumer-themed funds that have performed well. In the view of many public funds, non-ferrous metals and military-themed funds next year are worth looking forward to.
“This round of interest rate hikes by the Federal Reserve may be coming to an end, and the market is beginning to look forward to a rate cut next year, which will benefit non-ferrous metal prices.” Cathay Fund Research reported that the slowdown in U.S. inflation growth and the unexpected fall in employment data have made the market expect the Federal Reserve to continue to raise interest rates. Expected declines have provided support to commodity prices such as non-ferrous metals.
Galaxy Fund research report believes that at present, the risk appetite of the domestic market continues to fall, real estate policies in places such as Beijing and Shanghai are once again adjusted, and related industries are expected to show relative strength, such as light industry and building materials, including the non-ferrous metal industry.
In addition, the military industry has also seen more development opportunities in recent years. “The long-term prosperity trend of the military industry is clearly upward, and the military industry is expected to usher in an inflection point in 2024.” Cathay Fund research report stated that a group of military industry ETFs tracking the CSI Military Industry Index have undergone long-term adjustments, and the current price-earnings ratio quantile has been adjusted back to the past three years. It has been at a relatively low level of 15.13% since then, and the layout at the current stage is highly cost-effective.
Our reporter Wang Ning
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