On February 2, the Shanghai Stock Exchange released the ETF industry development report (2024). 2023 was a year of vigorous development for global index investment. The global ETF market size exceeded 11 trillion US dollars for the first time, with net inflows of funds approaching one trillion US dollars for the whole year. By the end of 2023, the total assets of ETFs traded globally reached 11.61 trillion US dollars, representing a growth of 21.83% from the end of 2022. By the end of 2023, the number of ETFs listed on domestic exchanges reached 889, an increase of 18.06% from the end of 2022, with a total size of 2.05 trillion yuan, representing a growth of 28.13% from the end of 2022. The report points out that the compound annual growth rate of the global ETF market size in the past 20 years was 22.16%, with the number of products continuously increasing for 20 years. Equity ETFs dominate the market by asset class. By the end of 2023, the global equity ETF market size reached 8.62 trillion US dollars, accounting for 74.2% of the total. In terms of regions, the global ETF market size is mainly concentrated in the United States and Europe. By the end of 2023, the market size of ETFs in the United States reached 8.11 trillion US dollars, accounting for nearly 70%, with the passive fund size surpassing the active fund size for the first time, marking a new milestone in index investment; the market size of ETFs in Europe was approximately 1.74 trillion US dollars, accounting for nearly 15%. Looking back at the domestic market, index investment has become a trend in the development of the domestic public fund industry. The domestic ETF market size surpassed 2 trillion yuan, reaching a historical high. By the end of 2023, the number of ETFs listed on domestic exchanges reached 889, an increase of 18.06% from the end of 2022, with a total size of 2.05 trillion yuan, representing a growth of 28.13% from the end of 2022. Among them, the market value of equity ETFs reached 1.73 trillion yuan, accounting for about 2% of the total market value of A shares. The domestic ETF market saw net inflows of funds exceeding 500 billion yuan for the whole year, playing a stable market role. In 2023, the net inflow of funds in the domestic ETF market reached 500.936 billion yuan, an increase of 71.11% from 2022. The highest net inflows were in stock ETFs, reaching 448.541 billion yuan. Nearly 80% of newly issued products were stock ETFs, with the growth in existing scale mainly coming from broad-based ETFs. The size of the domestic ETF market grew by 450.882 billion yuan in 2023; new products contributed 77.896 billion yuan to the growth, accounting for 17.28%; existing products saw a growth of 372.986 billion yuan, accounting for 82.72%. Looking at the Shanghai Stock Exchange market, in 2023, the Shanghai Stock Exchange guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, promoted the high-quality development of the fund market. The size of ETFs in the Shanghai market grew rapidly, with increasing investor participation. By the end of 2023, there were a total of 539 ETFs listed on the Shanghai market, with a total size of 1.56 trillion yuan, an increase of 25.26% from the end of 2022; the annual turnover was 21.65 trillion yuan, a year-on-year increase of 15.84%. The Shanghai ETF market ranked first and second in Asia in terms of turnover and size, respectively. The participation in the Shanghai ETF market steadily increased, with 6.69 million accounts holding ETFs at the end of the year, and 8.62 million trading accounts for the whole year. In terms of investor structure, institutional investors held a higher proportion and were more active in trading. By the end of 2023, the proportions of institutional investors in the size and trading volume of ETFs in the Shanghai market were 63.5% and 61.2%, respectively. In terms of products, efforts were made to create flagship broad-based ETFs and continuously improve product layout. The size of the CSI 300 ETF exceeded one trillion yuan, becoming the largest equity fund in the domestic market; eight Sci-Tech 50 ETFs had a combined size of over one trillion yuan, making it the second largest broad-based index series in the domestic market. The Shanghai Stock Exchange focused on broad-based ETFs, serving national strategic ETFs that are low in risk and stable in returns, to create the main battlefield for residents' wealth management. Mechanisms were continuously optimized to facilitate investor participation in the ETF market. The pilot project to promote ETF collective subscriptions was fully implemented, and the scope of ETF underlying assets included in the Stock Connect was steadily expanding, optimizing the development of complementary mechanisms for fund products. Looking ahead to 2024, with the continuous highlighting of the effects of the new round of capital market reform and opening up, the domestic ETF market is in a rare period of development opportunities. The main development trends in the ETF industry in 2024 include: the vast space for the development of index investment, with the ETF market in a period of development opportunities; the continued development of broad-based ETFs, creating a business card for the Shanghai fund market; the rapid development of industry-themed ETFs, serving national strategic layouts; the continuous enrichment of bond ETF varieties, and further optimization of mechanisms; the strong promotion of product innovations, continuous improvement of the ETF product chain; the research to promote the normalization of collective subscription business, and the optimization of ETF support mechanisms; the expansion of the fund connectivity platform business, implementing the requirements for the well-being of the masses; the expansion of ETF connectivity, actively bridging global markets; the enrichment of ETF option varieties, and the improvement of risk management tools; the continuous increase in the promotion of ETFs, attracting more medium- and long-term funds to participate.