"首批双创50ETF管理费降至三折"
2024-08-11 News Comments(89)

"首批双创50ETF管理费降至三折"

Following the ChiNext ETF, the first batch of Dual Innovation 50 ETFs has also begun to reduce fees.

On October 16, the Huaxia China Securities Science and Technology Innovation Entrepreneurship 50 ETF and its associated funds announced a reduction in management fees. The management fee was reduced from an annual rate of 0.5% to 0.15%, offering a 30% discount, making it the stock ETF product with the lowest management fee in the entire market that tracks the Dual Innovation 50 Index.

The first batch of Dual Innovation 50 ETFs was established in late June 2021, and it has now been three years since their establishment. This also means that, in addition to traditional broad-based ETFs such as the CSI 300 ETF, the CSI 500 ETF, and the ChiNext ETF, newly established broad-based ETFs like the Dual Innovation 50 ETF have also begun to reduce fees to benefit investors, thereby better enhancing the comprehensive competitiveness of the products.

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The annual management fee rate for the Huaxia China Securities Science and Technology Innovation Entrepreneurship 50 ETF and its associated funds was reduced to 0.15%.

On October 16, Huaxia Fund announced that in order to better meet the investment and financial needs of investors and reduce the financial management costs for investors, after consultation with the fund custodian, Huaxia Fund decided to lower the management fee rates and custody fee rates of some of its public funds starting from October 16, 2024, and correspondingly revise the relevant content of the fund contracts for each fund.

According to the announcement, the management fee rate for the Huaxia China Securities Science and Technology Innovation Entrepreneurship 50 ETF and its associated funds was reduced from an annual rate of 0.5% to 0.15%. The custody fee rate was reduced from an annual rate of 0.1% to 0.05%.

According to the reporter's understanding, currently, 14 products that track the Science and Technology Innovation Entrepreneurship 50 Index (referred to as the Dual Innovation 50 Index) have set an annual management fee of 0.5% for the vast majority of products. Adjusting to an annual management fee of 0.15% is equivalent to a 30% discount on the original management fee, with a sharp reduction of 70% in management fees.

Wind data shows that as of October 15, among the public institutions that have laid out the first batch of Dual Innovation 50 ETF products, the product scale under E Fund reached 10.234 billion yuan, ranking first in the industry; the product scale under Huaxia Fund reached 5.65 billion yuan, ranking second; and the product under Southern Fund was 5.153 billion yuan, following closely in scale.

Industry insiders stated that since the market performance and return expectations of broad-based ETFs tracking the same index are relatively homogeneous, setting a lower management fee under similar conditions of management scale and market liquidity is beneficial for benefiting investors, enhancing the market competitiveness of the product, and thereby increasing its attractiveness to investors.

This year, the scale of stock ETFs has shown a significant increase, with the scale of broad-based ETFs growing the fastest. As of October 15, eight stock ETF products have broken through the 100 billion yuan mark, and all are large-cap broad-based ETFs."The scale of the first batch of Double Innovation 50 ETFs is mostly still within 10 billion yuan. Referring to the rapid development momentum of broad-based ETFs, these products have great potential in the future, and continuously improving product competitiveness is also the direction that all public funds are striving for," said a stock ETF fund manager.

More than 20 passive index products have taken the initiative to reduce fees this year

This year, the reduction of fees for passive index products has been quite frequent. Wind data shows that more than 20 passive index products have taken the initiative to reduce fees this year, mainly focusing on ETFs or linked funds.

For example, Bosera Fund recently announced that in order to better meet the investment and wealth management needs of investors and reduce the cost of investors' wealth management, the company decided to lower the fees of Bosera ChiNext ETF and linked funds starting from October 14, and revise the corresponding contracts and agreements.

According to the announcement, the management fee rate of Bosera ChiNext ETF was reduced from 0.50% to 0.15%, and the custody fee rate was adjusted from 0.10% to 0.05%; the management fee rate of Class A shares of the linked fund was reduced from 0.50% to 0.15%, the custody fee rate was adjusted from 0.10% to 0.05%, and the Class C sales service fee was adjusted from 0.40% to 0.10%. The reduction in fees this time is quite considerable and has reached the lowest fee rate level in the current market.

In addition, the Shanghai and Shenzhen 300 ETFs under Nanfang, ICBC Credit Suisse, Huitianfu, and Ping An, the CSI 500 ETFs under Taikang and Ping An, the ChiNext ETFs under Jingshun Great Wall, ICBC Credit Suisse, and Huaan, the CSI 100 ETF of Yifangda, the CSI 1000 ETF of Guangfa, and the Shanghai Composite ETF of Guotai, as well as the securities industry ETFs or ordinary index funds under Yinhua, Harvest, and Fuguo, and the high dividend or dividend theme index products under Huitianfu and Wanjia have all reduced management fees this year.

China AMC stated that in order to better benefit investors and repay investors, the public fund industry has steadily reduced the comprehensive fee rate and improved product competitiveness. In the future, more products may reduce the comprehensive fee rate. The reduction of ETF fees will have a positive impact on the market, helping to attract medium and long-term funds to increase the allocation of equity assets. These "patient capital" is conducive to the formation of a "slow bull" market in the future and also helps to reduce market volatility.

"Of course, the competition for ETFs is not simply about who is cheaper, but also includes tracking error, liquidity, risk control, comprehensive service capabilities, and so on," said a person in charge of China AMC.

Huatai Baorui Fund Index Investment Department also believes that behind the accelerated promotion of public fund fee reform, on the one hand, it is the regulatory authority's demand for high-quality development of fund managers and fund products; on the other hand, in the current high-speed development of ETFs and passive investments, reducing fees to enhance the competitiveness of ETF products is also a general trend.

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