Multiple factors have fueled the passive investment frenzy, with bond ETFs seeing a size increase of over one trillion yuan since the second quarter.

Bond index investments are entering a period of strong growth. The latest data shows that the total size of bond-type ETFs has approached 870 billion yuan, an increase of over 100 billion yuan since the end of the first quarter. HFT Fund stated that in recent years, the pace of product innovation for bond-type ETFs has accelerated, with benchmark market-making bond ETFs and technology innovation bond ETFs attracting a wider range of investors, driving the healthy development of the bond ETF market. Industry insiders believe that with the improvement of liquidity and pledge mechanisms, the size of bond-type ETFs is expected to continue to grow. It should be noted that while on-exchange bond-type ETFs are attracting significant investments, multiple off-exchange bond-type mutual funds are experiencing large redemptions. Since the second quarter, over 60 off-exchange bond-type mutual funds have announced significant redemptions. In June alone, 7 off-exchange bond-type mutual funds have experienced large redemptions. In addition, some regular open-end bond-type mutual funds have also experienced significant redemptions on their open days.