As the fundamental system of China's capital markets continues to evolve, the effectiveness of the A-share market has gradually improved, providing a boost to the development of index fundsExchange-traded funds (ETFs), known for their real-time trading, high transparency, low management fees, ease of transaction, and good liquidity, have attracted a plethora of investorsSocial security funds have started including ETFs in their investment portfolios, further solidifying interest in this financial instrumentIn this burgeoning market environment, investment firms have ramped up their focus on the ETF sector, leading to a remarkable increase in ETF sizes this year.

Recent data illustrates that by December 20, the total size of all listed ETFs had grown by an impressive 1.69 trillion yuan since the beginning of the year, marking a yearly growth rate of over 80%. There are now 1,027 ETFs in total, which signifies an increase of 150 funds since January

Industry insiders attribute this growth to supportive policies and shifting market dynamics, enhanced by increasing product innovation and diversification within the ETF marketThis not only signals a rising acceptance of ETFs among investors but also indicates a significant transformation within the investment ecology of A-shares.

Among the ETFs, six have surpassed the threshold of one trillion yuan in sizeAs of December 20, a notable 54 ETFs on the A-share market had asset sizes exceeding 10 billion yuan, with 8 of those exceeding 50 billion yuanHighlighting the dominance of a few key players, the Huaxia SSE STAR Market 50 ETF and the Huatai-PB CSI 300 ETF both surpassed 90 billion yuan in size, at 92.5 billion yuan and 90.9 billion yuan, respectivelyComparing these figures to the start of the year, the former saw a reduction in share size by 11.6 billion yuan, while the latter increased by an impressive 53.5 billion yuan.

Huatai-PB CSI 300 ETF has emerged as the ETF with the most significant increase in assets this year and holds the title of the largest ETF currently available

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On December 20, it recorded an increase of 3.6 million shares that brought its assets up to 90.929 billion yuan, cumulating a net asset value of 365.127 billion yuanSince its inception on May 4, 2012, this fund has achieved a cumulative return rate of 78.59%, demonstrating its robust performance over the years.

Notably, out of the six ETFs exceeding the one-trillion-yuan benchmark, the top four are all part of the CSI 300 indexFollowing closely behind Huatai-PB’s CSI 300 ETF, the E Fund CSI 300 ETF, the Huaxia CSI 300 ETF, and the Harvest CSI 300 ETF have respective estimated fund sizes of 247 billion yuan, 163.5 billion yuan, and 155.6 billion yuanThis highlights the growing influence of the CSI 300 index as a critical gauge for market conditions among investors.

The CSI 300 index has served as a pivotal indicator for investors since its inception, providing essential insights into the broader market landscape

Currently, the total size of all CSI 300 ETFs has reached an astounding 990 billion yuan, reflecting investors' confidence in the prospects of this index amid favorable market conditions.

Market analysts suggest that the driving force behind this significant performance in the A-share market stems from substantial encouraging news across the finance and real estate sectors, fortifying expectations for improvements in fundamental conditionsAs of December 20, the non-bank financial sector and the real estate sector had experienced notable annual growth rates of 32.93% and 29.27%, ranking second and third among the 31 primary categories outlined in the Shenwan First Level Industries classificationThis boost in performance has further catalyzed a strong rebound in the CSI 300 index.

In the realm of thematic ETFs, those connected to the chip industry have emerged impressively, with six funds surpassing 10 billion yuan in scale

Leading the charge is the Huaxia Guozheng Chip ETF, standing at 29.2 billion yuan, followed closely by the Harvest SSE STAR Chip ETF at 25.5 billion yuan, and the Huabao Zhongzheng Medical ETF, which has a latest fund size of 25.3 billion yuanNotably, among these, the Fortune Zhongzheng Chip Industry ETF and Huaxia Guozheng Semiconductor Chip ETF exhibited the largest scale growth of 2.19 billion yuan and 1.76 billion yuan, respectively.

The chip-themed ETFs have shown a commendable performance recentlyData as of December 20 indicates that the Harvest Zhongzheng Whole Index Integrated Circuit ETF and the Guotai Zhongzheng Whole Index Integrated Circuit ETF achieved respective increases of 4.31% and 4.3%. Over the past month, both the Guotai and Harvest ETFs have risen by more than 10%. Particularly noteworthy are the Eastmoney Zhongzheng Chip Industry ETF and Tianhong Zhongzheng Chip Industry ETF, both showing impressive annual net value growth rates of 47.96% and 48.16%. This positive trajectory in the performance of chip-themed ETFs aligns closely with the upward trend in the global semiconductor market.

According to data from the Semiconductor Industry Association (SIA), the global semiconductor market has demonstrated continuous growth in the third quarter, achieving its highest sequential growth rate since 2016, with sales in September reaching a historically high monthly total