“Fee reduction, fee reduction! Domestic mega-ETFs are experiencing a large-scale fee reduction.”

Hua Tai Bei Rui HongShan 300 ETF and related funds issued a notice lowering the overall fee rate to the lowest among peers.

On November 19th, Hua Tai Bei Rui Fund announced that, in order to better meet the investment and financial needs of investors, starting from November 22nd, Hua Tai Bei Rui HongShan 300 ETF and its related funds will lower their management fees and custodial fees, and revise relevant fund contract contents. After the adjustment, the annual management fee for Hua Tai Bei Rui HongShan 300 ETF and its related funds is reduced to 0.15%, and the annual custodial fee is reduced to 0.05%, all set to the lowest rate among index funds. Almost simultaneously, other leading industry ETFs such as Huaxia HongShan 300 ETF, Huaxia ShangZheng 50 ETF, Nanfang ZhongCheng 500 ETF, JiaShi HongShan 300 ETF, and YiFangDa Entrepreneurial Board ETF also issued notices lowering management and custodial fees, with all rates reduced to 0.15% and 0.05%. Unlike previous ETF rate reductions, this reduction was initiated by market-leading products with significant scale advantages, which will have a substantial impact on the industry’s subsequent developments. Exchange data showed that as of November 18th, Hua Tai Bei Rui HongShan 300 ETF had a scale exceeding 370 billion yuan, making it currently the largest ETF in terms of size. The largest batch of super ETFs leading the way in reducing fees demonstrated their proactive willingness to benefit investors and allowed investors to invest in popular and liquid products at higher value for money. Industry analysts believe that ETFs with significant scale advantages lowering fees will, on one hand, facilitate the public fund’s role in providing inclusive financial services, helping investors reduce holding costs and enhance returns and investment satisfaction across a wider area; On the other hand, low rates will also further improve the competitiveness of the products themselves. With the added benefits of liquidity diversion effects and cost operation advantages, the products are expected to attract more medium-to-long term incremental funds into the market, helping build a good ecosystem for “long money long investment.” In recent years, thanks to its flexible trading, high transparency, strong liquidity, low investment barriers, and other unique advantages, broad-based ETFs have become the main channel for capital entering at low levels and “long money long investment.” This reduction in fees may serve as an “accelerator,” making it easier for long-term funds to enter the A-share market.

Epilogue

Although the Tianhong Fund that I invested in hasn’t yet released an announcement, it should be followed up on. If no update is provided, I will consider switching funds. Original Management Fee: 0.5%, Custody Fee: 0.1%. New Management Fee: 0.15%, Custody Fee: 0.05%. This reduction is quite significant.