During the "14th Five-Year Plan" period, the domestic index investment market experienced rapid development. By the end of the third quarter of 2025, the number of ETF products exceeded 1,300, with assets under management (AUM) surpassing 5.6 trillion yuan. China has surpassed Japan to become the largest ETF market in Asia.
In recent years, the domestic capital market has shown significant structural characteristics, coupled with a shift in investor demographics towards "younger, more online" participants. Leveraging its advantage of "packaging core assets of specific sectors with one click," ETFs have gradually transitioned from being dominated by professional institutions to widespread participation by the general public.
Looking ahead, institutions believe that Smart Beta (an investment approach combining passive index investing and active investment strategies), enhanced index ETFs, cross-border ETFs, and others will further drive diversified innovation in the ETF market. Long-term, stable increases in holdings by funds like Central Huijin will provide solid support for the market. The domestic ETF market is steadily entering a new phase of high-quality development.
Frequent Emergence of "Blockbuster Products"
Wind data shows that from the end of 2020 to the end of Q3 2025, the number of domestic ETF products rapidly expanded from 378 to 1,325, and ETF AUM significantly increased from 1.11 trillion yuan to 5.63 trillion yuan. Data indicates that in July this year, China surpassed Japan to become Asia's largest ETF market.
Since the beginning of this year, the expansion of the ETF market has further accelerated. In the first three quarters, 279 new ETF products were added, and ETF AUM increased by 1.9 trillion yuan, both indicators setting new annual historical records.
The public fund industry has seen the emergence of many "blockbuster products" in thematic ETFs this year. The market's choice, demonstrated by "real money investment," indicates that ETFs are becoming an important tool for investors to participate in sector trends.
For example, the Fullgoal ChinaAMC Hong Kong Stock Connect Internet ETF focuses on leading Hong Kong-listed internet companies and has now become the largest Hong Kong-themed ETF by size in the entire market. In the first three quarters of this year, its fund units increased by nearly 60 billion, ranking first in the market. The HuaBao CSI Total Return Securities Company ETF and the Penghua CSI Segmented Chemical Industry Theme ETF followed closely, with fund units increasing by over 38 billion and 23 billion respectively. Another 15 ETFs saw unit increases exceeding 10 billion, covering popular sectors such as Hong Kong tech, robotics, banking, defense, Hong Kong-listed innovative pharmaceuticals, and fintech.
Furthermore, the number of holder accounts for some ETFs increased significantly. Comparing the holder situations disclosed in the 2025 interim reports and the 2024 annual reports reveals that in the first half of this year, the number of holder accounts for Hua An Gold ETF increased by nearly 170,000, and the number of holder accounts for ChinaAMC CSI Robotics ETF increased by over 150,000. Moreover, the types of ETF holders are becoming increasingly diverse, with Central Huijin, insurance companies, social security funds, pensions, bank wealth management products, enterprise annuities, foreign capital, public funds, private funds, securities firms, and individual investors all actively participating in ETF investments.
"All-in-One Package" Investment Becomes a Trend
Why has the "one-stop," "all-in-one package" index investment method represented by ETFs gained increasing recognition among domestic investors in recent years?
Analyzing the market environment, Taikang Fund believes that currently, emerging industries such as new energy, artificial intelligence, and high-end manufacturing are accelerating their iteration, while traditional industries are showing a divergence trend during transformation and upgrading. This makes the capital market exhibit significant structural characteristics. The speed of sector rotation has increased, making stock selection significantly more difficult for ordinary investors.
ETFs恰好能有效解決這一痛點。恰好能有效解决这一痛点。恰好 can effectively address this pain point. As "sector capturers," after tracking a specific index, ETFs essentially "bundle and integrate" the core assets of that field. Whether it's the broad market opportunities covered by broad-based indexes or the niche tracks focused on by sector indexes, investors can easily participate through a single ETF without struggling over "which individual stock to choose." This investment logic of "not betting on individual stocks, but embracing trends" highly aligns with the stable investment needs of fund investors, becoming an important reason driving the shift in investor sentiment.
More and more young investors are actively participating in ETF investments. The "Synergy for Win-Win · ETF Client Investment Behavior Insight Report" released by Invesco Great Wall Fund in collaboration with institutions such as Guotai Haitong Securities and Tonghuashun (300033) shows that in 2024, "post-80s" investors, accounting for 29.98%, became the backbone of ETF investment; "post-90s" investors, accounting for 22.15%, rapidly emerged with an annual growth rate of 100.42%; the number of "post-00s" clients surged by 212% year-on-year, making them the fastest-growing group.
In the current expansion phase of the ETF market, the strategy team of Sealand Securities believes that broad-based ETFs play a leading role, while hot thematic ETFs like technology and finance are rapidly rising. Looking ahead, Smart Beta, enhanced index ETFs, cross-border ETFs, etc., will further promote diversified innovation in the ETF market. Long-term, stable increases in holdings by funds like Central Huijin will provide solid support for the market. The domestic ETF market is gradually entering a new stage of high-quality development.
