In 2025, private equity firms showed strong enthusiasm for investing in ETFs (Exchange-Traded Funds) that debuted that year. According to statistics from Private Fund Ranking Network, products from a total of 171 private equity firms appeared on the list of the top ten holders of 209 ETFs listed that year, with a combined holding of 3.341 billion shares. Regarding the reasons behind private equity firms’ active allocation to ETFs in 2025, Li Chunyu, a FOF fund manager at Shenzhen Rongzhi Private Securities Investment Fund Management Co., Ltd., stated: “ ‘This can be summarized in three main aspects: First, in a market environment characterized by rapid rotation within structural trends, ETFs provide private equity firms with efficient, low-cost, and risk-controlled investment tools, and their excellent liquidity facilitates flexible portfolio rebalancing; Second, ETFs feature low fees and diversified holdings, which help reduce the risk associated with individual stock positions and lower investment research costs; third, the abundance of ETFs in niche sectors not only facilitates precise industry allocation for discretionary strategies but also provides convenience for quantitative strategies to implement hedging and other operations.” (Securities Daily)