Index fund head effect concentration exceeds active fund for the first time for the first time

Index fund head effect concentration exceeds active fund for the first time for the first time

Original Title: King of Wall Street Scale!

The head effect of index funds concentrated for the first time in a month over the active fund China Times.


(cn) Reporter Chen Feng trainee reporter Liu Chaofeng Beijing, Shanghai reported that according to the latest data from Morningstar, in August the U.S. index fund scale surpassed actively managed funds for the first time, becoming the “king of asset management scale” on Wall Street.

Index funds are also developing rapidly in the country.

In 2018, the size of domestic index funds increased by nearly 40%.

As of the first half of 2019, the size of domestic index funds has reached $ 940 billion.

  Fund companies have also considered and deployed index fund products.

More typically, on September 10th, Tibet Dongcai Fund Management Co., Ltd. (hereinafter referred to as “Dongcai Fund”), which was established almost a year ago, finally announced its first product, an index fund that tracks the Shanghai 50 Index.

  ”The quality broad-based index has decreased, and the current pattern is the expansion of the size of the starting fund.

The development of domestic index funds is mainly concentrated on head platform companies, and small and medium fund companies need differentiated competition.

Although the fee rate will have a certain impact, “Smart Beta” is the development direction of future index funds.

“The private equity ranking expert Xu Wenzheng told reporters from the China Times.

  Index funds have become the largest scale of Wall Street asset management in the past two years. In August, the scale of passive index funds in the United States surpassed actively managed funds for the first time in a month, becoming the “king of asset management scale” on Wall Street.

Morningstar Inc.
The data shows that the termination of the month of August 31st, the asset size of the US stock market index fund reached 4.

27 trillion US dollars, the first ever in a single month in excess of active management funds through independent stock selection, and the asset size of the month was 4.

$ 25 trillion.

  The domestic index funds ushered in a “large-scale explosion” against the trend in 2018, and the scale increased by nearly 40%.

This strong growth momentum also continued in the first half of 2019.

According to statistics from Oriental Fortune Choice, as of the first half of 2019, the size of domestic index funds has reached $ 940 billion, an increase of nearly 40% from the 670 billion at the beginning of the year, and almost doubled to $ 480 billion in the same period in 2017.

  The first product of Dongcai Fund, a subsidiary of Oriental Fortune, is the “Sword Index” index fund.

The Dongcai Fund, which was established in October 2018, has been slow to issue new products. Finally, on September 10, 2019, it announced the first product to the meeting of the Securities and Futures Commission—Tibet Dongcai Shanghai Securities 50 Index-type sponsored securities investment fund.Relevant materials have been received.

This is not only a fund that tracks the SSE 50 Index; it is also a start-up fund with a minimum establishment size of 10 million.

  This reporter from China Times contacted the Dongcai Fund, and the other party expressed inconvenience to respond.

A senior official from Suning Financial Research Institute, Wang Huan, told a reporter from China Times that it is rare for a fund company’s first product to be an index fund, and money funds are generally used to expand the management scale first.

A person in the market of a medium-sized fund company in Shanghai told a reporter from China Times that Dongcai Funds have channel advantages and should be determined based on their own endowments.

  Prior to this, ETF has just set off a wave of “low-rate wars”.

For example, on May 24th, E Fund cut the rate of its product E Fund CSI 300 ETF on the right, and the management fee was reduced from zero.

2% down to 0.

15%, hosting rate from 0.

1% down to 0.


Other public equity fund companies have had to adopt a follow-up strategy and successively reduce their rates.

  Why has the index fund become so popular in recent years?

“Longer the investment cycle, the return level of index funds is the average of the continuous market.

Index funds are also easy to become ‘allocation + trading’ financial instruments, suitable for institutions to allocate assets, especially the development of transfer FOF (funds in funds), the potential of index funds.

Wang Xun told a reporter from the China Times.
  Some people also expressed that the formulation of preferential tax policies and the continued development of pension target funds in the future will further stimulate the further development of index funds.
  Lowest rate is the key to the earliest investment advisory model?

  At present, domestic index fund investment has become very common.

However, “the high-quality broad-based index has decreased. The current pattern is the expansion of the size of the start-up fund. Later, it has become difficult for participants to obtain a breakthrough issue size.

ETFs have been popular in recent years, but they are mainly head-platform companies, and small and medium-sized fund companies cannot participate because of high costs.

The development of domestic index funds is mainly concentrated on head platform companies. Small and medium-sized fund companies need to compete differently, avoid opening competition with head companies, and issue boutique funds that meet vertical populations.

Xu Wenhuan told a reporter from China Times.

  How to achieve differentiated competition is also an issue for many fund companies to consider when deploying index funds.

At present, many excellent fund companies have emerged in index funds.

“A handful of fund companies, such as E Fund and Castrol, have more excellent quantitative investment research teams. The influence of the rich country fund’s military index fund is also very wide.

Said Wang Yan.

  At present, the domestic fund sales method is “expected investment advisory model.”

There is no way for individuals to do investment consulting alone, they must rely on institutions.

“Because the investment advisor must be an employee of a sales agency, it can only recommend fund products that the agency allows him to sell, which may not be based on the interests of investors.

Therefore, there is no way to guarantee the independence of investment advisors.

“The first person told a reporter from China Times.

  The business model of Schwab Financial Corporation is the “previous investment advisory model”.

It is understood that Charles Schwab is a fund sales platform in the United States. Charles Schwab provides information and system services to investment consultants.

There is a partnership between the investment consultant and the platform. The client directly benefits the investment consultant, and the investment consultant pays some technical service fees to the platform.

  Zheng Zhiyong, vice-president of Brainstorm, once wrote that if Orient Wealth follows the Charles Schwab financial management model, it must have an investment consultant working with it, and its index fund rate must exceed the associated low.

Because investment consultants want to collect more investment fees themselves, they must let fund companies earn less management fees, so investment consultants prefer low-rate funds.

  ”The American path has demonstrated that index funds must be low-cost.

Zheng Zhiyong told reporters of the China Times.

  Wang Yan told the China Times reporter that if the fund company wants 武汉夜网论坛 to follow the Charles Schwab’s Internet model, it must have a very comprehensive product line, especially index funds, and then sell them in the form of fund portfolios to achieve customer income and funds.Scale-up and win-win.

If the product line is incomplete, it is still necessary to rely on third-party fund sales companies such as Suning Fund, Tiantian Fund, and Good Buy Fund for portfolio sales.

  In terms of fees, Wang Yan believes that index funds are already very low, which is not the key to competition; the key lies in how to enable customers to obtain returns beyond the market through the matching of index funds.

  Xu Wenhuan told a reporter from China Times that although the rate has a certain impact, it is not the point. The core competitiveness of index funds is whether the converted index has investment 杭州夜网论坛 value, and the current broad-based index is flooding in the market. Therefore, “Smart Beta”It is the development direction of future index funds.
  ”In the short term, the domestic Smart Beta index investment is not mature, and it is difficult to appear in the short term.

In the long run, fund companies that can accurately grasp the market’s differentiated needs, cost control capabilities, and excellent quantitative backgrounds, such as Tianhong, Cathay Pacific, Invesco, etc., may make breakthroughs in index investment.

Xu Wenzheng said so.

  Editor: Liu Chunyan Editor: Chen Feng