With the rapid growth in the number of ETF products, investors face increasingly complex screening challenges. Issues such as ambiguous classification standards, highly specialized terminology, and significant cross-border differences make it difficult for ordinary investors to quickly match their needs. Addressing this pain point, a systematic reconstruction of the stock index ETF classification system has been undertaken based on local practices and international experience. It categorizes ETFs into four major types: size indices (broad-based), style factor indices, sector indices, and thematic indices. This provides investors with a clear product navigation map, helping them understand the actual characteristics of different ETFs and find products that suit their needs. At the same time, the classification aligns with international conventions, making it easier for foreign investors to understand and invest in Chinese ETFs.

Regarding size indices (broad-based), there are currently differences in the definition of broad-based indices between domestic and international markets, which may prevent investors from screening and comparing them globally under a unified standard and make it hard to discern the true characteristics of the indices. To address this, the broad-based indices have been reorganized along two dimensions—market and market capitalization—to more objectively reflect their actual features. For example, the CSI A500 is a large-cap index for A-shares, while the STAR 50 is a large-cap index for the STAR Market. This allows investors to clearly understand the differences between products and better match their investment needs.

For style factor products, which have developed rapidly in recent years, some investors may still be unfamiliar. Styles generally refer to growth and value, while factors include momentum, market capitalization, quality, dividend, and low volatility. Academic research suggests these factors can improve returns or control risks over the long term. Based on market awareness and product development, style factors are categorized into four groups: growth, value, dividend, and others, enabling investors to quickly grasp product features and match them with their needs. Growth and value are further subdivided by large, mid, and small-cap dimensions. For example, the CSI 300 Growth is large-cap growth, while the CSI 1000 Value is small-cap value, with completely different risk-return characteristics suited to different types of investors.

For sector and thematic ETFs, there are multiple classification systems such as GICS, CSI, and Shenwan, making it difficult for investors to quickly determine which system to refer to. Moreover, the line between sector and thematic indices is not always clear, complicating retrieval and comparison. To address this, the distinction between sector indices and thematic indices has been clarified: the former are based on sector classifications and reflect the performance of stocks within a specific sector, while the latter focus on long-term trends, themes, or concepts, often spanning multiple sectors. Additionally, by integrating commonly used domestic and international sector classification systems, eight major sector categories have been established. Based on China’s industrial strengths and sector trends, six thematic categories have been formed, covering all sector and thematic index products in the market. This allows investors to more clearly and conveniently retrieve, compare, and invest in various sector or thematic ETFs.