3wtreel| Hidden corner of the issuance process: To help withdraw funds, many dividend-themed ETFs have been reduced to mini bases

Interface News reporter | Ji Yao

Have defensive attribute3wtreelThe dividend-themed style dominates the A-share market this year. The cumulative increase of dividend low wave, CSI dividend and other indexes so far this year is 19%.3wtreel.05% and 14.94%, far exceeding the gains of the mainstream index. The CSI 300 Index and the Shanghai Composite Index rose 5.44% and 4.39% this year.

About 90% of the listed dividend-themed funds made positive returns during the year. In this market, the declaration and issuance of dividend-themed products are very hot. According to Wind data, about 30 dividend-themed funds have been established during the year, surpassing the data for the whole of 2023.

In addition to the successful products that have been issued, a number of dividend-related products reported by Jingshun Great Wall, Huitianfu, Hua'an, Southern Fund and other public offerings are lining up to enter.

However, although the issue of dividend-themed products is hot, some of the funds have not stopped for long. According to the statistics of the interface news reporters, the dividend theme ETF that was just established this year has shrunk significantly, and some have even become mini-funds.

In May, the newly launched Wells Fargo dividend low-wave ETF issued about 800m shares. More than a decade later, about 300m shares retreated, and the latest fund share shrank to less than 500m shares. The dividend low-wave 100ETF of Dacheng Fund plummeted from 402 million at its debut to only 18 million, while the related products of Guangfa and Huaxia Fund also shrunk to mini funds.

According to interface news reporters learned from the industry, this kind of flashback funds are often "help funds".

A public offering person told reporters that the pace of product declaration to approval is not controllable, and the dividend style is dominant in recent years. ETF has been the main growth point of equity funds at present, bringing a number of "lively" scenes issued together, which has also led to ETF becoming more and more difficult to do. In the case of insufficient incremental funds, in order to protect the issuance of the fund and compete for the scale of the initial public offering, there are indeed cases in the industry looking for "help funds" to protect the establishment and fight for scale.

"Supervision encourages the issuance of equity products, and there is a certain proportion of fixed collection and equity products to be declared. For example, at present, a debt base to raise billions can be achieved, even from the point of view of corporate income and expenditure, or can be balanced as a whole. " The above-mentioned public offering person also said.

Interface news reporters learned from the brokerage channels that when a number of ETF are issued in a pile, "help funds" can be described as booming supply and demand. There is an agreed holding time for help funds, income generation is generally more than 5% annualized, and principal losses have a mechanism to make up for losses. At the beginning of listing, provide liquidity, after listing, withdrawal arbitrage.

Asked about such sources of funds, the person said that brokerage funds, insurance funds, private equity funds and so on are all sources. "in the past, securities firms could use the scale of sales in exchange for trading volume, but now, after the second stage of public offering fee reform is on the ground, this model will not work."

Not only is the popular dividend theme ETF, the previous 10 CSI A50ETF listed in the IPO, the share has shrunk sharply, but also attracted attention.

The above-mentioned brokerage people said that "help funds" already exist in the industry. ETF has the characteristics of re-initial launch, coupled with the accelerated development in recent years, ETF's "help funds" industry chain has been formed. At present, fund sales are at a freezing point, and the figure of "helping funds" is even more obvious.

The overall scale of ETF is growing faster and faster, but there is an endless "volume" behind it, which is futile in many ways.

In terms of policy, in the new "National Nine articles" issued by the State Council in April, it is proposed to establish a rapid examination and approval channel for exchange-traded open index funds (ETF) to promote the development of indexed investment. From the regulatory guidance, the pace of ETF approval and issuance will still accelerate. " Industry insiders believe that.

Generally speaking, only one or two of the ETF tracking the same index can roll up the scale. On the other hand, a track ETF does not need that many. The growth in the size of ETF is related to liquidity, and at the beginning of the launch, everyone wants to be the first in scale. Once you can take the lead on this Beta track, it is easier to get bigger. This time, the purchase of Shanghai and Shenzhen 300ETF by Central Huijin is a very typical case. Now, index products have become the 'main battlefield', but more like a 'besieged city'. " The above-mentioned public offering person said.

However, all parties conspired to use "help funds" to gain the advantage of issuing scale, leaving behind a mini ETF after the withdrawal of funds. When talking about the retention or departure of the stock ETF, the above-mentioned public offering said that although the ETF in the same track is more of a "companion run", liquidation also has costs. There are also some ETF can be used as seed funds, such as a few minority colored theme ETF that ushered in the market this year.

Some index fund managers believe that, "to help the withdrawal of funds, the scale shrinks rapidly, mainly due to the lack of real buying, reflecting the current overall market situation is still not good." For 200 million to set up the scale line, individuals do not feel the need to be completely stuck, whether the issuance threshold can also be relatively relaxed, the current market to find 200 million real buying is very difficult. Liquidation on the basis of ensuring the liquidity of products does not have to be rigid regulations, more to the market to deal with better. "