With the 2026 third-quarter reports for public mutual funds fully disclosed, the latest holdings of FOFs (funds of funds) have gradually come into focus, and the role of bond ETFs (exchange-traded funds) within the heavyweight fund lists of certain FOFs has drawn attention.
Wind data shows that, based on the heavyweight funds disclosed by FOFs, as of the end of the third quarter a total of 40 bond ETFs appeared on FOF heavyweight lists, with combined heavyweight holdings value of 20.060 billion yuan; at the end of the second quarter the figures were 29 ETFs and 18.906 billion yuan. Comparing the two periods, the number of relevant products rose by 11 and the combined heavyweight holdings value increased by 5.82%.
Looking at specific products, the holdings of some bond ETFs in FOF heavyweight lists have changed. Wind data shows that as of the end of the third quarter, the HFT Shanghai Urban Investment Bond ETF was held as a heavyweight position by 76 FOFs, with combined heavyweight holdings value reaching 2.093 billion yuan, the highest heavyweight holdings value among all FOF heavyweight funds and an increase of 548 million yuan from the end of the second quarter; combined heavyweight shares rose by 51.4439 million units.
At the same time, the Fullgoal ChinaBond 7-10 Year Policy Financial Bond ETF was held as a heavyweight position by 78 FOFs, an increase of 15 from the end of the second quarter; the Bosera SSE 30-Year Treasury Bond ETF and the SSE 10-Year Treasury Bond ETF were each held as heavyweight positions by 53 FOFs, increases of 14 and 9 respectively.
In terms of allocation direction, the above products cover different types of bonds including credit bonds, government bonds and policy financial bonds, providing FOFs with diversified tools for duration management, credit risk allocation and portfolio adjustments.
Ding Kailin, a fund manager at Xingzheng Global Fund, told reporters that since the start of this year the company's multi-asset team has launched four allocation-series FOFs, all of which are relatively prudent-style products with a central risk-asset allocation of no more than 30%. The related arrangements are mainly based on judgments about the market environment and asset valuation levels, with the aim of better matching investors' risk-return needs through relatively prudent strategies.
Bond ETFs generally feature a clear tracking target, relatively high holdings transparency and convenient on-exchange trading. FOFs can, in light of the duration, credit quality and liquidity characteristics of different bond indices, select allocation tools that fit their portfolio objectives.
Wu Yueneng, a senior analyst at Morningstar (China) Fund Research Center, said in an interview with reporters that different investment tools differ in risk-return characteristics, liquidity and cost, and FOF managers should allocate reasonably in light of the market environment, product positioning and portfolio objectives.
Wu Yueneng said that in the future, differentiated competition among FOFs will be reflected more in the breadth and depth of multi-asset research, as well as the effective combination of asset allocation, tool selection and portfolio management.
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