As the 2026 interim fund reports conclude, the latest ETF ownership structures have come to light, revealing distinct preferences between individual and institutional investors across different categories.
According to Wind data calculations, by end-June, healthcare-focused ETFs saw retail investors hold approximately 86% of shares, significantly outpacing institutions. Dividend, technology, and Hong Kong-listed equity ETFs also recorded retail ownership ratios exceeding 60%. In contrast, broad-based index ETFs are predominantly institutionally held, with organizations accounting for roughly 68% of total holdings.
Zeng Fangfang, public fund operations lead at Shenzhen PaiPaiWang Fund Sales, explained that these ownership divergences stem from differences in product attributes, capital scale, and trading behavior. Retail investors leverage sector ETFs to execute thematic positioning and sector allocation strategies, while institutions favor broad-based ETFs for long-term beta returns, liquidity, and reduced market impact costs, employing them as portfolio anchors and asset allocation vehicles.
Fu Yifu, a distinguished researcher at Suban Bank, noted that broad-based ETFs offer transparent holdings and strong liquidity, satisfying institutional needs for liquidity management and risk hedging.
Notably, compared with end-2025, retail participation has increased across multiple ETF categories. Hong Kong equity ETFs saw retail ownership rise from 77.55% to 77.69%, while dividend-oriented ETFs climbed from roughly 69% to 72%. ETFs are increasingly becoming a vital channel for retail investors to access equity markets.
These shifting ownership patterns also place new demands on fund managers' product development and operational strategies. Cui Yue, an analyst at Morningstar China's fund research center, observed that as the ETF market continues expanding, firms must balance the divergent needs of both investor groups. Overall, ETF offerings are evolving to serve both institutions' long-term allocation requirements and retail investors' sector-specific strategies.
As the market deepens, the way individual and institutional investors select ETF tools will play a pivotal role in shaping the future ecosystem of the ETF landscape.