Under the sharp fluctuation of A-share market, the attitude of funds towards stock ETF products is still "the more they fall, the more they buy". Since the beginning of 2022, the Shanghai Composite Index has dropped from 3600 to 3300, during which the net inflow of equity ETF exceeded 100 billion yuan; China concept Internet, Hang Seng Internet ETF, growth enterprise market ETF, and infrastructure 50ETF, which are relatively resistant to decline, are favored by funds, and ushered in net purchase of funds in the sharp decline.
net inflow exceeding 100 billion
equity ETF "big drop and big buy"
According to wind data, the stock index has fallen by more than 4% since March. In the same period, the total share of 609 equity ETFs (statistical stock ETFs + cross-border ETFs) in the whole market increased by 32.895 billion yuan; Based on the average transaction price, the net inflow is about 17.523 billion yuan; Over a longer period of time, the stock index has fallen by more than 9% since 2022, while the total share of equity ETFs has increased by 123523 billion, with a net inflow of about 106635 billion yuan.
In view of the phenomenon of funds buying stock ETFs against the market, Luo Guoqing, head of the Index Investment Department of GF, said that the phenomenon of "reverse trading" of ETFs has existed for a long time. At present, the capital threshold for participating in ETF redemption is high, mainly institutions and individual investors with large amount of funds. They have more investment experience and are more rational about the rise and fall of the market.
On the other hand, Luo Guoqing said that this phenomenon is also related to the characteristics of ETF products. ETF has the characteristics of strict discipline and high transparency. If investors want to copy the bottom, they must ensure that the bottom position of the fund is stable and there is no style drift. ETF strictly tracks the index and discloses position data every day, which is favored by "bottom reading funds".
Tan Hongxiang, assistant director of Huatai Bairui Fund Index Investment Department, said that the participants of ETF are investors who pay close attention to the market and have mature investment ideas. Compared with "chasing up and killing down", they are more inclined to reverse operation. In the process of decline, ETF with transparent positions can provide greater certainty.
In addition, Tan Hongxiang said that in the process of the rapid decline of the market, the non systematic risk of individual stocks has been amplified. On the premise of maintaining the position of equity assets unchanged, ETF with scattered positions is a more stable investment choice compared with individual stocks.
Liang Xing, director of quantitative investment department of Cathay Pacific Fund, also believes that the above phenomenon reflects the long-term bullish outlook of funds in the short-term adjustment. "Under the multiple pressures of external geopolitics, interest rate hike and tightening and internal epidemic risk, China's steady growth policy is facing a more anyway environment, and there are many factors that need to be taken into account."
Liang Xing said that due to the market correction, some funds lacked confidence in the complex internal and external environment and chose to leave, resulting in the phased irrational decline of the market; On the other hand, we are optimistic about the future of the market in advance.
zhonggai Internet and Hang Seng Internet ETF
net purchase of over 10 billion
From the perspective of capital inflow structure, sectors with heavy decline this year, such as zhonggai Internet ETF, Hang Seng Internet ETF and securities ETF, have become the main targets of net capital inflow; The net capital inflow of zhonggai Internet ETF and Hang Seng Internet ETF is at the level of 10 billion. In addition, the relatively resilient infrastructure 50ETF was also favored by funds, with the fund falling by 3.38%, but there was a net inflow of 4.7 billion yuan, and the ETF was also newly added as a 10 billion fund.
In the broad-based index, the growth enterprise market ETF, Kechuang 50ETF, growth enterprise market 50ETF, Hang Seng ETF and Nasdaq ETF with large decline, among which the largest decline this year is more than 21%, but the net inflow is more than 3 billion yuan.
From the list of net capital outflow, Shanghai Stock Exchange 50ETF, China Stock Exchange 500etf, Shanghai and Shenzhen 300etf and other broad-based index products, as well as bank ETF and consumer ETF, have seen net capital outflow. Shanghai Stock Exchange 50ETF, which has sold the most net, has seen a net capital outflow of about 9.4 billion yuan since the beginning of the year.
Turning to the flow of funds, Luo Guoqing said that after the continuous rise from 2019 to 2021, it is difficult to deduce the general rise this year, but there may be structural opportunities. Compared with broad-based index products, funds are more willing to invest in more subdivided industry theme ETFs.
Luo Guoqing believes from the analysis of capital flow that investors generally recognize two types of directions: one is ETF with stable growth expectation under economic pressure, such as infrastructure 50ETF The other is the dilemma reversal ETF. After a period of adjustment, zhonggai Internet ETF and Hang Seng technology have attracted more investors.
Liang Xing said that for the technology sector that has fallen more, long-term investors generally believe that this is only a phased adjustment. Science and technology is the direction of long-term support of the state and the realization of future performance. Irrational decline has brought good prices; Short term investors believe that the rebound strength of the sector with a large decline is also relatively large, which is suitable for bottom reading. "The behavior of long-term investors is consistent with that of short-term investors. Gem, sci-tech innovation board and technology subdivided ETFs are more popular."
Tan Hongxiang believes that there are more net purchases of products with large decline and more net sales of products with small decline or even rise, indicating that investors have formed the habit of buying more and more when they fall, but it also shows investors' expectations for the market style. The sectors with more decline at present are expected to obtain better returns when the market is repaired in the future.
