On November 5th, the second batch of China Securities A500 ETF was officially launched, capturing significant attention in the marketThis initiative has been noted by many investors who recognize the potential and importance of the China Securities A500 index.

In essence, the A500 index strikes a balance between traditional industries and emerging sectors, focusing on industry leadersUnlike the more established CSI 300 index, the A500 is viewed as more representative of the current economic landscape in China, indicating a wealth of growth prospects for investors.

Reflecting on the launch of the first batch of the A500 ETF, many were curious about which fund would be the first to break through the 10 billion Yuan markAt that point, I refrained from predicting, knowing the strong capabilities of each fund manager involved and the significant effort they had all invested, making it difficult to discern a clear winner.

But now, less than a month post-launch, one fund, the CSI A500 ETF (159338), has astonishingly surpassed the 10 billion Yuan threshold within just seven trading daysAs it stands, estimates show that its value has now exceeded 20 billion Yuan, achieving this remarkable growth in just 17 trading days.

So, why has this particular ETF outperformed its counterparts? The swift success can largely be attributed to two key factors: unique features of the fund and the strength of the fund management company behind it.

Firstly, the CSI A500 ETF boasts the largest fund size and the best liquidity in the sectorBefore discussing its distinctive attributes, it is essential to delve into some current performance statistics of this ETF

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According to Wind data, as of yesterday, the CSI A500 ETF (159338) had amassed nearly 198.85 billion Yuan, with net subscriptions exceeding 1.1 billion unitsPreliminary indications suggest that the current fund size has already eclipsed 200 billion Yuan, reflecting an astonishing growth rate exceeding 900% since its listing.

In terms of share structure, its circulation stands at approximately 200.66 billion units, which, combined with today's net subscriptions, may push the total beyond 210 billion units. Notably, its trading volume is consistently robustSince its listing, the daily trading average has reached 23.71 billion Yuan, marking it as the most active ETF among its peers.

Could “monthly dividends” be the highlight of the fund?

Upon observing various ETFs in the first batch, a pattern emerges: apart from minor variations in fees, issuance, and listing dates, a significant contrast exists in their dividend policiesFund management companies have adopted diverse strategies, including quarterly, mandatory quarter dividends, and even monthly dividends.

Prompted by the performance of the Dividend State-owned Enterprise ETF (510720), which has notably employed a “monthly dividend evaluation mechanism” since its inception, the CSI A500 ETF (159338) has also opted for this structure, setting it apart in the ETFs landscapeSince its launch in May of this year, it has consistently provided monthly dividends for six months straight, demonstrating its commitment to consistent financial return strategies.

As it happens, the CSI A500 ETF (159338) follows suit with a similar mechanism

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Dividends will be distributed under conditions where the fund's net asset growth rate exceeds the established benchmark or where distributable profits are greater than zero.

Whether or not this rapid growth in fund size and shares can be attributed directly to the dividend model is debatableHowever, given the success of the Dividend State-owned Enterprise ETF's monthly payouts, it is likely that the CSI A500 ETF will follow this trend.

Next, let’s discuss how Cathay Fund's focused approach on A500 ETF demonstrates broader strategic intentions.

The recent launch of the CSI A500 ETF can also be viewed as a significant step in Cathay Fund’s overarching ETF strategyWhen discussing Cathay Fund, many instinctively refer to its prominent industry-focused ETFs, which indeed hold a strong position in the market.

While this is true, it is equally important to recognize that this perception neglects Cathay Fund's substantial developments in the broader base ETF arena.

Cathay Fund has extended its reach across several critical segments, including a large-cap ETF representing the CSI 300, a mid-cap ETF following the CSI 500, a small/micro-cap ETF based on the CSI 1000, and a cutting-edge technology ETF for innovation sectorsFurthermore, the introduction of the CSI A500 ETF strengthens its positioning as a comprehensive index player.

In summary, while much attention is rightly paid to their industry-focused ETFs, Cathay Fund's array of broad-based indices such as the CSI A500 ETF presents a full spectrum approach to market coverage.

In conclusion, the active alignment towards both thematic and broad-based strategies has positioned Cathay Fund for substantial growth

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