Broad-Based ETF Average Daily Trading Volume Exceeds 100 Billion Yuan Annually

Our reporter Peng Yansong

As a core index investment tool in the A-share market, broad-based ETFs (Exchange-Traded Funds) have recently seen continuous increases in trading volume.

Wind Information data shows that on March 24, the single-day trading volume of broad-based ETFs reached 81.864 billion yuan; as of that day, the average daily trading volume this year has been 110.068 billion yuan, maintaining high market activity.

In terms of capital flow, products tracking core broad-based indices such as the Sci-Tech Innovation Board Composite Index, Sci-Tech Innovation 50, SSE 50, CSI 300, and CSI A500 are the most favored by the market, becoming the main vehicles for incremental capital entering the market.

Regarding performance, Wind Information data indicates that as of March 24, the average net asset value growth rate of broad-based ETFs over the past year was 25.73%, with a median of 20.72%. Among them, products tracking the ChiNext 50 and Sci-Tech Innovation 50 indices of small- and mid-cap stocks performed the best.

朱润康, a public fund product manager at Qianhai PaiPaiWang Fund Sales Co., Ltd. in Shenzhen, stated that compared to industry theme ETFs and active equity funds, broad-based ETFs have a particularly prominent allocation advantage in the current rotation market. They can effectively diversify the risk of volatility in a single sector, seize the overall market recovery opportunities, and do not require investors to precisely judge sector rotation timing. Additionally, broad-based ETFs have significantly lower fees than active equity products, are convenient to trade, and offer ample liquidity. They can serve as underlying tools for multi-strategy approaches such as options and margin trading, enabling one-click allocation of core market assets, which highly aligns with the current market’s demand for stability.

Tian Lihui, a finance professor at Nankai University, said that the short-term market sentiment release provides a good window for medium- and long-term deployment of quality assets. Broad-based ETFs with leading scale and ample liquidity have become the preferred tools for investors’ core allocations.

Cui Yue, an analyst at Morningstar (China) Fund Research Center, also stated that broad-based ETFs can capture overall market returns at a relatively low cost and high transparency. By covering a wide range of industries, they help diversify risks associated with sector rotation and enable investors to share the long-term benefits of economic and market growth. Cui Yue also reminded that different broad-based indices have different construction rules, and their risk-return characteristics vary. Investors should clarify their allocation strategies based on the index features, avoid overlapping risks from multiple products’ underlying assets, and prioritize products with small tracking errors and stable operations over the long term.

Industry insiders generally believe that as the institutionalization process of the A-share market continues to deepen, broad-based ETFs, as efficient and transparent index investment tools, will continue to be recognized by various types of capital.

(Edited by Xu Nannan)

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