On the 16th anniversary of the launch of China’s ETF products, the Shanghai Stock Exchange and Wells Fargo Fund and other public fund companies held a series of “Sixteen Years and Sixteen Cities” ETF Summit Forum. On the afternoon of March 20, the “Sixteen Years and Sixteen Cities” ETF Summit Forum for Wells Fargo Fund ended successfully in Ningbo. Chen Yanwei, Deputy General Manager of Shanghai Stock Exchange Product Innovation Center; Lu Wenjia, Deputy General Manager of Wells Fargo Fund; Xun Yugen, Chief Strategy Analyst of Haitong Securities; Wang Lele, ETF Investment Director of Quantitative Investment Department of Wells Fargo Fund; Zhang Shengxian, Chief Strategy Analyst of Quantitative Investment Department of Wells Fargo Fund; Product Innovation Center of Shanghai Stock Exchange Senior lecturer Cao Mengtian gathered together to share topics such as the innovative development and trend of ETFs, and the “better solutions” of ETF investment strategies, and gave investors a splendid ETF exchange feast.
Chen Yanwei, Deputy General Manager of Shanghai Stock Exchange Product Innovation Center
Chen Yanwei, deputy general manager of the Shanghai Stock Exchange Product Innovation Center, delivered an opening speech. He said that the Shanghai Stock Exchange ETF has been in development for 16 years, with a good development trend and good results. In terms of scale, as of 2020, the total market value of domestic listed ETFs has exceeded one trillion yuan, an increase of nearly 50% over the previous year, ranking second in Asia; from a liquidity perspective, my country’s total ETF turnover last year was nearly 11 trillion yuan Yuan, ranked first in Asia. In addition, it has also achieved excellent results in product innovation. Last year, 4 ETFs on the Science and Technology Innovation Board were issued. In addition, there are Nasdaq ETFs, China-Japan ETFs, etc., and investors can conveniently allocate global assets through ETFs on the Shanghai Stock Exchange. He also said that compared with the international market, my country’s ETF market still has room for improvement. In the future, the development of the ETF market will be promoted from four aspects: exploring product innovation, researching innovative business models, accelerating the development of ETF-supported products, and further increasing the intensity of ETF market promotion.
Lu Wenjia, Deputy General Manager of Wells Fargo Fund
As one of the practitioners and participants of China’s ETF business, the Quantitative Team of Wells Fargo has continued to break through with a stable team and excellent performance in the environment of intensified competition, and has achieved good results in the index enhancement series and ETF series. In 2020, he won the honor of “Quantitative Investment Golden Bull Fund Company”. Lu Wenjia, deputy general manager of Wells Fargo Fund, said that as one of the top ten public fund companies, Wells Fargo Fund has a troika of equity, fixed income, and quantification. Wells Fargo Fund has been deeply involved in the quantitative field, including ETF investment, for more than 11 years. In 2011, it took the lead in deploying the first ETF in the market to track the Shanghai Stock Exchange index. With years of in-depth cultivation and layout, a relatively rich ETF product line has been formed, covering ETF products in categories such as broad-based ETFs, industry-themed ETFs, commodity ETFs, and Smart Betas. Looking forward to the future, as the reform of the capital market continues to deepen and the concept of investor wealth management changes, ETFs will usher in a period of accelerated development.
Xun Yugen, Chief Strategy Analyst, Haitong Securities
Xun Yugen, chief strategy analyst of Haitong Securities, made an in-depth analysis of the future investment trend. He said that from the perspective of major assets, the equity market will replace real estate as an important asset allocation for investors in the next 20 years. If you look at it from a ten-year or longer perspective, it will enter an era of equity investment, where equity assets will be regarded as core assets. The bull market that began in 2019 should continue this year, because the inertia of upward corporate profits this year will be greater than the trend of tightening liquidity margins. However, this year is the third year of the bull market, and volatility will increase. Specific to the industry, the smart manufacturing and mass consumption fields are more worthy of attention in the future. In addition, the Hong Kong market can also be expected.
Wang Lele, ETF Investment Director, Quantitative Investment Department, Wells Fargo Fund
In recent years, Wells Fargo Fund has seized the development opportunities of high-quality subdivision tracks and has intensively cultivated its layout in the ETF field, providing investors with ETF products with good tool attributes. Wang Lele, ETF Investment Director of the Quantitative Investment Department of Wells Fargo Fund, shared the theme of “How to Select ETFs? Rational Thinking Based on Profit-Loss Ratio”. Talking about how investors should select ETF products, he said that ETFs are a high-quality investment tool. , To make investment easier, you don’t need to focus on the details of specific companies, as long as you grasp the general direction and trend, it may bring a relatively good rate of return. From a long-term investment perspective, the future can be laid out in a high-quality track in accordance with the rhythm. Pay attention to the profit-loss ratio during the investment process. The pullbacks of some high-prosperity tracks this year are more of a decline in sector valuation, not a change in profitability. The market has experienced large fluctuations, which may provide good investment opportunities.
Zhang Shengxian, Chief Strategic Analyst, Quantitative Investment Department, Wells Fargo Fund
At the sharing meeting, Zhang Shengxian, chief strategist of the Quantitative Investment Department of Wells Fargo Fund, brought the theme of “ETF Portfolio Construction & Sector Rotation Strategy”. He believes that ETFs are a good tool. If you are optimistic about a direction, use ETFs for investment. In the investment process, we must first understand clearly what exactly the ETF invests in? On the other hand, some market allocations can be made. First of all, it is necessary to do asset allocation from top to bottom, including stocks, bonds, commodities, etc., with the allocation ratio fixed, and then cleverly use ETF to capture the opportunity of sector rotation. In the specific investment, the fixed investment method can be adopted. If asset allocation is to diversify risks through different assets, then fixed investment is to diversify risks in different time dimensions.
Cao Mengtian, Senior Lecturer, Product Innovation Center, Shanghai Stock Exchange
Regarding how to use options to optimize the allocation of ETF assets, Cao Mengtian, a senior lecturer at the Product Innovation Center of the Shanghai Stock Exchange, introduced two different varieties of option subscription and put, which have precise strikes (which can achieve investment prediction to the greatest extent) and three-dimensional operations ( With the dual advantages of long, short, portfolio strategy, etc., investors can adopt insurance strategies (protective buy and put strategies), enhance returns (cover open positions), optimize asset allocation (90/10 strategies), and volatility Rate trading (straddle strategy) and other functions flexibly display the investment value of options. In a variety of market environments, investors can use options to optimize the asset allocation of ETFs, which can increase returns and control risks.
ETFs are developing well in my country, and they are inseparable from the persistent guidance and investor education of the Shanghai Stock Exchange, as well as the intensive cultivation of fund companies in the field of ETF investment and unremitting product innovation. Relying on years of deep accumulation in indexed investment research, Wells Fargo Fund has continued to make efforts in subdivided index products in recent years. In early 2021, with the successive issuance and listing of several products such as agricultural ETFs, smart car ETFs, and chemical 50 ETFs, the number of ETF products currently deployed by Wells Fargo Fund ranks among the forefront of public offerings. In the future, with the gradual maturity of China’s capital market and the increasing investment needs of investors, the ETF industry has unlimited potential. As a practitioner of investor wealth management, Wells Fargo Fund will also firmly develop in the ETF field, continuously enrich the types of ETF products, provide investors with diversified tool choices, and strive to create more value.
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