Rising Against the Trend! Funds Increase Holdings

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Last week, the new energy sector indices led the gains, with ETFs such as E Fund Battery ETF (159175), E Fund Energy Storage Battery ETF (159566), E Fund New Energy ETF (516090), and E Fund Low Carbon ETF (516070) experiencing significant increases.

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The CSI A500 ETF remained highly active, with E Fund A500 ETF (159361) showing strong trading volume. Additionally, cross-border and commodity ETFs attracted attention, including Gold ETF E Fund (159934), Hang Seng Tech ETF E Fund (513010), as well as ETFs related to China-Korea semiconductors, S&P Oil & Gas, and Hong Kong securities, which saw active trading.

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Last week, capital flows were mixed, with total net outflows exceeding 18 billion yuan across all listed ETFs. Conversely, ETFs focused on new energy, electricity, and related sectors attracted substantial inflows, including E Fund Energy Storage Battery ETF (159566), Green Power ETF E Fund (562960), and Power Grid Equipment ETF E Fund (560390).

New Energy ETFs Lead the Gains

Last week, the A-share market showed a pattern of volatility and consolidation, with clear sector rotation. The highlight was the new energy industry chain, where segments like batteries, energy storage, and photovoltaics all performed strongly. Traditional energy sectors such as power and coal were active under the “electricity calculation synergy” policy. Meanwhile, sectors like non-ferrous metals experienced corrections due to international commodity price fluctuations, and aerospace, military, and high-end equipment ETFs faced downward adjustments.

According to Wind data, last week, ETFs related to new energy led the gains, becoming the biggest winners. The Battery ETF tracking the CSI Battery Theme Index (159175) rose by 8%, performing exceptionally well. ETFs such as E Fund New Energy (516090), Low Carbon ETF E Fund (516070), and Energy Storage Battery ETF E Fund (159566) all increased by over 5%.

The energy industry chain continued to strengthen, with coal ETFs soaring. Additionally, multiple power ETFs experienced explosive growth, with some rising more than 3%.

The technology growth sector saw a correction, with aerospace and military ETFs declining over 6%. Semiconductor-related ETFs also fell significantly, with several semiconductor equipment and innovative chip ETFs dropping over 4%. Oil and gas ETFs that had previously surged also experienced broad declines, with many falling more than 5%.

In terms of trading volume, broad-based ETFs remained highly active, with the CSI A500 ETF reaching a total trading volume of 188.7 billion yuan, ranking first among index ETFs. Products like E Fund A500 ETF (159361) were particularly active.

Other leading products included the Sci-Tech Innovation 50 ETF (588080), CSI 1000 ETF (159633), and CSI 300 ETF (510310). ETFs tracking these indices also saw high trading activity.

In the Hong Kong market, ETFs related to the Hang Seng Tech Index had a total trading volume exceeding 80 billion yuan, making it the most traded index in Hong Kong stocks. The Hang Seng Tech ETF E Fund (513010) was among the most active.

Last week, the precious metals sector experienced volatility, with SGE Gold 9999-related ETFs totaling a trading volume of 46.2 billion yuan. Gold ETFs like E Fund (159934) continued to attract attention. Overall, cross-border ETFs saw active trading, with China-Korea semiconductor ETFs and S&P Oil & Gas ETFs leading in trading volume.

Power ETFs Attract Capital

In terms of capital flows, last week saw a significant net outflow of 18.769 billion yuan across all ETFs. Broad-based index ETFs generally experienced outflows, with some funds related to the ChiNext, CSI 300, and CSI 500 indices also seeing net withdrawals. Oil and gas ETFs such as Penghua Petroleum ETF, Huatai Oil & Gas ETF, and Invesco Petroleum ETF also experienced large net outflows.

However, several industry-specific ETFs attracted net inflows despite the overall trend. Focus sectors included new energy and power, with ETFs like Energy Storage Battery ETF (159566), Green Power ETF (562960), and Power Grid Equipment ETF (560390) receiving substantial inflows. Many power ETFs also attracted large amounts of capital.

The Free Cash Flow ETF has been a popular recent investment target, with ETFs tracking the China Securities Free Cash Flow Index, such as E Fund (159222), seeing net inflows exceeding 2.6 billion yuan.

In the technology sector, semiconductor materials, equipment, and Hong Kong tech stocks drew market attention. ETFs like Semiconductor Equipment ETF E Fund (159558) and Hang Seng Tech ETF E Fund (513010) ranked high in net inflows.

Additionally, the precious metals sector continued to be favored, showing a “buy more as prices fall” trend. ETFs investing in Shanghai Gold Exchange Au99.99 spot contracts, such as E Fund (159934), saw nearly 5 billion yuan in net inflows.

ETF Market Overview

Fundamental valuation weights are gradually increasing

Looking ahead, E Fund Index Research Department General Manager Pang Yaping believes that the spring rally may be coming to an end, with a higher likelihood of sideways consolidation. Besides the calendar effect, macroeconomic data for March will be released sequentially, ending the macro and earnings data gap period. As a result, fundamental valuation weights are beginning to gradually rise. The index may have limited room for large short-term gains driven solely by earnings. However, in the medium term, the overall A-share market is expected to further open up upward potential.