CICC: Passive product scale down, broad-based index funds outflow

According to analysis by Zhongjin Securities, by the end of the first quarter of 2025, the overall scale of passive products has experienced a quarterly decline for the first time in nearly two years, with a growth rate of -1.0%. Stock ETF product inflows have stalled, while outflows from broad-based index products are apparent. Despite the increasing scale of newly issued stock ETFs, net outflows have resulted in only a slight increase of 0.3%. Bond ETFs continue to maintain high growth rates, while commodity ETFs have seen a significant increase of 39.9% driven by the gold market. Industry-themed products are generally on the rise, with the manufacturing sector experiencing the highest growth rate of up to 14.8%. Cross-border products have seen a growth rate of 16.4%, with their scale approaching previous highs. The concentration of products has further decreased, with many top managers experiencing a decline in scale. The popularity of equity products is increasing, with attention being paid to the science and technology innovation index and the CSI A500 products.