QDII performance "bumper harvest"! Emerging markets become the focus of layout with an impressive growth of over 66% in 2023.

Zhitong App has learned that QDII products in overseas markets have been receiving continuous attention recently. Huaxia Nomura Nikkei 225 ETF, E Fund MSCI USA 50 ETF, and other QDII funds have appeared with high premiums, leading several QDII funds to issue risk warnings. At the same time, the performance of public fund products for 2023 has been released, and the data shows that QDII funds have become the focus of investors' subscriptions in the fourth quarter of 2023, with a subscription ratio of 11%. Among them, the QDII products that invest in the Hong Kong internet sector have seen the largest increase in shares.

QDII, which stands for Qualified Domestic Institutional Investor, refers to funds that raise money in China and invest in overseas assets, allowing domestic investors to indirectly participate in foreign markets. As the global economy continues to develop, global asset allocation has become particularly important in long-term investments. Many investors have gradually shifted their focus to overseas investment markets.

The number of QDII funds established reached a record high last year, and funds flowed into Hong Kong stocks against the trend

Overall, QDII funds performed well in 2023, with the number of fund issuances and establishments reaching a new high in nearly 10 years. According to Wind data, as of the end of 2023, a total of 60 QDII funds (A and C shares combined, excluding ETF linked funds) have been announced as established. According to the fourth quarter report of 2023, the total scale of QDII funds exceeded CNY 478.268 billion.

In addition, many fund companies are still actively submitting new QDII products for approval. According to the application situation, as of January 19, 2024, 118 QDII funds have been applied for since 2023, of which 37 have been approved and 9 are "approved but not yet issued". In terms of fund companies, Huatai Baoqing Fund has applied for 14 funds (including linked funds), while Jiashi and Nanfang Fund have both deployed more than 10 funds. Huitianfu, Boshi, Huaxia Fund, and others have also submitted a large number of applications.

In terms of overseas markets, in the fourth quarter of 2023, overseas markets such as the US and Japan saw gains, with the Nasdaq index rising by more than 13% and the Nikkei 225 index also rising. In addition, in the fourth quarter of 2023, the Hang Seng Index continued to decline, but funds entered the market against the trend. Among QDII products, the ones that saw the largest increase in shares were those that invested in the Hong Kong internet sector. The data shows that the Huaxia Hang Seng Internet Technology Industry ETF (QDII) increased by 13.6 billion shares in the quarter, while the Huaxia Hang Seng Technology ETF (QDII) increased by 8.8 billion shares.

GF Fund, Huaxia Fund, and other products have leading returns

Specifically, there are 16 QDII products in 2023 with a return rate of over 50%. Among them, GF Global Select RMB Fund took the crown with a 66.08% increase, and Huaxia Global Technology Pioneer RMB Fund ranked second in the performance of active equity QDII funds with a return rate of 58.19%. According to the information, GF Global RMB was established on August 18, 2010. As of January 8, 2024, the fund has achieved a return rate of 307.84% since its establishment. According to the third quarter report of 2023, GF Global RMB focuses on the allocation of artificial intelligence and has increased its holdings in China's internet industry assets. The fund's major holdings include companies such as NVIDIA, Microsoft, Google, Tesla, and Pinduoduo.

Huaxia Global Tech Pioneer RMB also focuses on the "technology sector" and mainly allocates to leading companies in the US stock market, such as internet, semiconductor, SaaS software, consumer electronics, and electric vehicle companies. According to the disclosed information, as of the end of the third quarter of last year, the fund's major holdings were concentrated in NVIDIA, Meta, Google, Microsoft, Broadcom, Apple, Tesla, Amazon, AMD, and Lam Research.

In addition to the above-mentioned funds, most of the QDII funds with a growth rate of over 50% are passive index products. For example, Huaxia Nasdaq 100 ETF, Guotai Nasdaq 100 Index, Huaxia Nasdaq 100 ETF, Guotai Nasdaq 100 ETF, Huaxia Nasdaq 100 ETF A, GF Nasdaq 100 ETF, and Da Cheng Nasdaq 100 ETF A. These funds track the Nasdaq 100 Index.

On the other hand, there are also 25 QDII funds with a decline of over 20% for the whole year, with the largest decline being 29.81%. Some QDII funds that track the Hang Seng Internet Technology Industry Index, Hang Seng Healthcare Index, Hang Seng Hong Kong Listed Biotechnology Index, and Hang Seng Composite Small Cap Index have generally performed poorly.

Emerging markets may become the focus of layout

Looking ahead to 2024, industry insiders believe that with the expectation of a rate cut by the Federal Reserve, the risk appetite in overseas markets will increase, and the upward trend in markets such as the United States, Japan, and India is expected to continue. From a global allocation perspective, QDII funds can be considered as a hedge against A-share risks and also serve the purpose of diversified investment.

Several industry insiders have stated that in recent years, some overseas markets that have low correlation with A-shares have shown outstanding performance in certain stages, attracting the attention of investors. Public fund companies attach importance to the layout of QDII products, which not only continuously improve their product lines but also meet the needs of investors for international and diversified asset allocation. Looking ahead, QDII index products investing in emerging markets are expected to become the focus of layout.

Regarding the current timing of the layout, a large-scale public fund research and investment professional stated that the increasing popularity of the QDII fund market indicates a high level of attention from incremental funds. However, the polarization of QDII funds is also evident. QDII funds that invest in the US and Japanese stock markets have been favored by funds due to their outstanding performance, and some QDII funds have announced the suspension of large-scale subscriptions. Some even have continuous trading suspensions due to the risk of premium. He suggests that investors should not blindly chase after trends, but should choose QDII funds from the perspective of overall asset allocation based on their own risk tolerance and understanding of overseas markets and products.