Challenges and Strategies in Global and Domestic ETF Markets
The global ETF market is experiencing issues of overheating and underperformance, primarily due to the proliferation of thematic ETFs. The number of ETFs listed on the U.S. stock market exceeds 4,300, surpassing individual stock numbers. However, only 20% of these thematic ETFs outperform their benchmark indices. Notably, ETFs focused on themes like cannabis, nanotechnology, and cloud computing are underperforming against their indices, revealing a repeated pattern of quickly launched thematic products that fail to deliver results. Major asset managers are responding by altering the names of products like Metaverse ETFs and adding new portfolio items.
Experts argue that for the ETF market to develop healthily, asset managers' self-regulation efforts must be paired with increased oversight by financial authorities. Excessive competition may lead to investor confusion and unfair trading practices, making it crucial to prevent overheating marketing of thematic products and ensure monitoring of unfair trading activities.
Domestically, the ETF market faces challenges in achieving qualitative growth, particularly due to the proliferation of single-stock and 'clone ETFs.' Similar-themed products are overmarketed, potentially undermining market trust and distorting investor choices. Therefore, higher accountability from asset managers and financial authorities is necessary.
Meanwhile, the strength of the Chinese stock market has increased interest among domestic investors in China-related ETFs. Notably, stocks related to AI, semiconductors, and humanoid robots are gaining attention, driven by China’s semiconductor self-sufficiency and Alibaba's development of proprietary AI chips. However, given the sharp rise in Chinese stock prices relative to earnings, investors are urged to pay close attention to deviation management.
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