116 private equity firms invest heavily in broad-based ETF products listed within the year, becoming 'favorites'
2024-10-24
Since the beginning of this year, the popularity of public ETF (exchange traded open-ended index fund) products has been soaring, attracting various funds to accelerate their entry, and private equity institutions are also actively competing for funding. According to the latest statistical data, as of October 22, a total of 116 private equity securities managers' products appeared on the top ten holders list of 95 ETFs listed this year, holding a total of 2.762 billion ETF shares. When it comes to the reasons why private equity institutions actively allocate ETFs, Yao Xusheng, a wealth manager at Paipai Network, told reporters: "Firstly, private equity institutions can quickly adjust their investment portfolios and diversify risks by allocating ETFs. Secondly, some private equity institutions use ETFs for arbitrage trading and strategy diversification. Thirdly, the management fees and trading costs of ETFs are relatively low, which allows private equity institutions to reduce investment costs and increase returns, especially in long-term holdings where they are expected to gain more returns Among the private equity firms with heavy holdings in ETFs, small institutions are the most active. Among the 116 private equity institutions mentioned above, 22 institutions with a management scale between 500 million yuan and 1 billion yuan hold a total of 851 million ETF shares, leading the way. Private equity institutions with a management scale between 5 billion and 10 billion yuan and over 10 billion yuan closely follow, with little difference in ETF holdings between the two, at 475 million and 459 million respectively. Private equity institutions with a management scale between 1 billion and 2 billion yuan hold the least ETF shares, with only 188 million shares. Among them, subjective private equity institutions and quantitative private equity institutions have a high enthusiasm for allocating ETFs. Data shows that 29 quantitative private equity firms hold a total of 826 million ETFs, while 52 subjective private equity firms hold a total of 1.001 billion ETFs. In terms of total holdings, subjective private equity firms have higher holdings of ETFs. From the ETFs allocated by various private equity institutions, broad-based index ETFs are the most favored. Among the 14 ETFs held by private equity institutions with a share of no less than 50 million, there are a total of 8 broad-based index ETFs, accounting for 57.14%. Among them, among the top ten holders of Huabao CSI A50 ETF, three private equity securities products are listed, with a total holding of 130 million shares; Among the top ten holders of the Dacheng CSI A50 ETF, there are also three private equity securities products, with a total holding of 124 million shares. In addition, the CSI A500 Index, which focuses on core assets of A-shares, has also been closely monitored by private equity institutions recently. Data shows that among the first batch of 10 CSI A500ETFs listed this year, private equity institutions appeared among the top ten holders of 8 products, with a total holding of 364 million shares. Why is CSI A500ETF so attractive to private equity institutions? Yao Xusheng said, "The CSI A500ETF has advantages such as low transaction costs, good liquidity, high transparency, and convenient trading. Private equity institutions can more flexibly conduct cash management and arbitrage operations by configuring related products." From the perspective of fund managers, data shows that 66 private equity institutions hold no less than 10 million ETF shares. Among them, 54 institutions hold ETF shares between 10 million and 49 million, and 6 institutions hold ETF shares between 50 million and 99 million. Six institutions, including Hexi Investment, Xuanyuan Investment, Hengtai Rong'an, Shanghai Chuo Rui Private Equity, Tianbao Fund, and Hengde Capital, hold no less than 100 million ETF shares. Specifically, Hexi Investment holds the largest number of ETF shares, with a total of 20 products appearing in the top ten holders of ETFs listed this year, holding a total of 299 million shares. Xuanyuan Investment, a billion yuan private equity firm, ranks second, with a total of six products listed in the top ten holders of ETFs this year, holding a total of 200 million shares. In addition, seven billion yuan private equity institutions, including Hengde Capital, Yingshui Investment, Sixie Investment, Tongyi Investment, Yinye Investment, Ningbo Meishan Bonded Port Lingding Investment Management Co., Ltd., and Xinhong Tianhe, have listed their products on the top ten holders list of ETFs that will be listed within the year. Their total holdings are 125 million shares, 58 million shares, 25 million shares, 16 million shares, 13 million shares, 12 million shares, and 10 million shares, respectively. (New Society)
Edit：Yao Jue Responsible editor：Xie Tunan
Source：Securities Daily
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