China Stock Pickers Lose $312 Billion of Assets in Shift to ETFs
A relentless slump in Chinese equities has pushed star money managers out of jobsBloomberg Terminal, left investors saddled with losses and driven a 40% drawdown in active fund assets from their peak. Yet one corner of the market has been booming.
Exponential growth in exchange-traded funds has made passive investing an influential force in the $8.1 trillion stock market, with such products now accounting for about 45% of all equity-focused fund assets. The ratio has doubled in just three years and is fast catching up with the US, where passive equity strategies command 58% of market share after overtaking the active ones in 2019.