As the ETF industry shifts from a race for scale to a race for value, differentiation has become the key to breaking through the competitive landscape. Speaking at a recent roundtable discussion during the 2026 ETF Ecosystem Development Forum, Gong Lili, Deputy General Manager of the ETF and Innovation Investment Department at Invesco Great Wall Fund, shared her insights on ETF product iteration, strategy upgrades, and investment trends.

On the topic of ETF innovation, Gong Lili believes that from an asset allocation perspective, there is significant room for product innovation, while infrastructure development is also timely from an ecosystem standpoint. She noted that ETF services must evolve from merely providing tools to delivering tailored solutions. "We are no longer in an era of simply offering tools. Every firm is building customized solutions, and true differentiation comes from having a deep understanding of your own strategy framework, which allows you to design target functions for different investors and produce distinct outcomes," she explained.

How can fund companies carve out a differentiated path in their ETF businesses? In Gong Lili's view, differentiation is not just a slogan, but a pragmatic approach that runs through both product structuring and service systems. First, product development should pursue a distinctive and internationalized strategy. Being distinctive does not mean offering a large and comprehensive lineup, but rather seeking breakthroughs through differentiation. For instance, the Invesco Great Wall NASDAQ Technology ETF achieves precise coverage of the pure tech sector by excluding non-technology companies from the NASDAQ index. Supported by favorable market conditions, its utility as a tool and its earnings elasticity have been well demonstrated. On the internationalization front, leveraging the expertise of its foreign shareholder, the company is advancing two main initiatives: first, reserving QDII as an independent asset class to enrich its overseas toolbox, and second, promoting Chinese quality products globally. In June 2024, the ChiNext 50 ETF, listed across five major European exchanges with support from its foreign shareholder Invesco Ltd., saw rapid asset growth, and the company plans to continue expanding this overseas pathway.

Second, service delivery should also focus on differentiation to maximize the potential of beta. The ETF industry has moved beyond the stage of providing instruments alone; it now emphasizes delivering solutions. Invesco Great Wall's approach remains centered on differentiation—because very few single strategies remain effective over time, the company stresses a deep understanding of its own strategy systems, aiming to produce customized outputs that match the target functions of different clients. "For example, when a channel partner asked if we could create a product with smaller drawdowns within equities, we combined style rotation with quantitative methods to develop a dividend low-volatility plus strategy. That is a solution tailored to specific needs," Gong Lili added.

From her perspective, to truly excel with beta, one must first understand it. Market beta is primarily driven by four factors: liquidity, earnings, sentiment, and valuation. Currently, the most discussed factor is liquidity. The certainty lies in the fact that overseas interest rates remain elevated. Additionally, momentum factors can influence growth-oriented sectors, particularly those tracks that rely on sustained momentum. The second core driver is earnings. Earnings expectations for 2026 continue to improve, suggesting that earnings will serve as the primary growth driver going forward. In summary, growth styles are not necessarily disadvantaged; the company favors growth underpinned by quality, while also maintaining a positive outlook on value styles.

Brand marketing also forms part of the differentiated service strategy. Invesco Great Wall has created exclusive mascots for its signature ETFs, building an "Invesco Great Wall ETF Zoo" that links product characteristics with animal images like elephants, corgis, and capybaras. This approach constructs a lively ETF marketing and investor education system, delivering a more engaging and approachable service experience.

During the forum, the Invesco Great Wall "Dividend+ Family," featuring the capybara as its mascot from the ETF Zoo, made a collective appearance as a distinctive highlight. The product lineup spans both A-shares and Hong Kong stocks, with strategy types including dividend plus low volatility, dividend plus quality, and dividend plus momentum, designed to meet the demand for differentiated dividend positions among investors with varying risk appetites.

On the dividend plus low volatility front, the Dividend Low Vol 100 ETF Invesco (515100), managed by Gong Lili, tracks the CSI Dividend Low Volatility 100 Index. With the inclusion of the low volatility factor, the index has delivered higher returns, lower volatility, and smaller drawdowns compared to the CSI Dividend Index over the past five years. (Data source: Wind, as of July 31, 2026. Over the past five years, the Dividend Low Vol 100 Total Return Index versus the CSI Dividend Total Return Index: annualized return 11.07% versus 8.26%; annualized volatility 14.56% versus 15.76%; return-to-risk ratio 0.76% versus 0.52%; maximum drawdown -13.60% versus -18.39%.) The Hong Kong Dividend Low Vol ETF Invesco (159569) is the only ETF in China tracking the SZSE Hong Kong Stock Connect Dividend Low Volatility Index, covering high-dividend sectors such as banks, coal, and transportation while incorporating the low volatility factor to offer investors a Hong Kong dividend allocation tool with reduced volatility. (As of July 31, 2026.)

In addition, the Invesco Great Wall CSI Shanghai-Hong Kong-Shenzhen Dividend Growth Low Volatility Fund (Class A: 007751; Class C: 007760; Class E: 021735) invests in 100 stocks from A-shares and Hong Kong stocks accessible via Stock Connect that feature consecutive cash dividends, steady earnings growth, and low volatility characteristics. By layering the growth factor on top of dividend and low volatility attributes, the fund aims to enhance the portfolio's offensive flexibility.

For dividend plus quality, the HK SOE Dividend ETF Invesco (520990) is among the first ETFs in China to track the CSI Guoxin Hong Kong Stock Connect SOE Dividend Index, focusing on high-dividend central state-owned enterprises. Its holdings are concentrated in sectors such as oil and petrochemicals, coal, and telecommunications, and it is complemented by an off-exchange feeder fund (Class A: 021961; Class C: 021962). The Dividend 100 ETF Invesco (159188) represents the dividend plus momentum strategy—this is the only ETF in China tracking the S&P China A-Share Dividend 100 Index. It incorporates a momentum factor on top of traditional screening criteria such as market capitalization, liquidity, dividends, and yield, ensuring component quality while pursuing stronger earnings elasticity. (As of July 31, 2026.)

As a key participant in China's ETF industry, Invesco Great Wall Fund continues to upgrade its ETF approach along the dual-track strategy of differentiation and internationalization. Going forward, the company plans to further deepen its indexation expertise and index-based allocation strategies, with the goal of providing more scientific and diversified portfolio options for a wide range of investors in complex market environments.

Risk disclosure: The views expressed above represent the perspectives at the time of writing and may change in the future. This content is for reference only and does not constitute investment advice or a guarantee, nor should it be considered a legal document. The fund manager operates a business isolation system with its shareholders, who do not directly participate in the investment operations of fund assets.