Fund investors are confused! The wind has shifted dramatically, industry-themed ETFs saw net outflows of 26.2 billion yuan, the once-hot chemical sector is facing massive redemptions, and non-ferrous metals have erased all their year-to-date gains.

(Source: ETF Wind Indicator)

This week, the Shanghai Composite Index fell below 4,000 points, while the ChiNext Index rose against the trend. Stock ETFs and cross-border ETFs in Shanghai and Shenzhen saw a total net outflow of 8.76 billion yuan.

In terms of industry themes, ETFs in healthcare and related sectors were favored by funds, while chemical and non-ferrous metal ETFs experienced selling.

Industry Theme ETFs Net Outflow: 26.2 billion yuan

This week, the total trading volume in Shanghai and Shenzhen was 10.97 trillion yuan, with 4.76 trillion yuan in Shanghai and 6.21 trillion yuan in Shenzhen. As of the latest close, the Shanghai Composite closed at 3,957.05 points, down 3.38% for the week; the Shenzhen Component Index closed at 13,866.2 points, down 2.9% for the week.

Wind data shows that the combined net outflow of stock ETFs and cross-border ETFs in Shanghai and Shenzhen this week was 8.76 billion yuan. Broad-based index ETFs saw a net inflow of 9.078 billion yuan, while industry theme ETFs experienced a net outflow of 26.2 billion yuan.

Breaking down by category, the main broad-based index funds showed that the CSI 300 had a net inflow of 6.558 billion yuan, while the CSI A500 had a net outflow of 6.202 billion yuan.

Regarding specific ETFs, the top 10 broad-based index ETFs with larger scales saw a total net inflow of 12.412 billion yuan this week, with Southern CSI 500 ETF and Huatai-PineBridge CSI 300 ETF each net inflowing over 4.3 billion yuan.

Performance of Major Index-Related ETFs This Week

Some analysts point out that the ongoing escalation of tensions in the Middle East has heightened concerns about prolonged conflict. Additionally, inflation fears triggered by energy shocks have reshaped global interest rate expectations, and the market is no longer betting on a rate cut by the Federal Reserve this year. However, brokerage firms believe that this Middle East conflict is expected to only impact short-term sentiment and market rhythm in A-shares, without changing the overall market direction.

Selling of Chemical and Non-Ferrous Metal ETFs

In industry theme ETFs, 28 funds saw net inflows exceeding 100 million yuan this week, including healthcare ETFs, non-ferrous metal ETFs (Tianhong), and green power ETFs (Harvest), which increased by 2.374 billion, 865 million, and 461 million shares respectively, with net inflows of 794 million, 786 million, and 624 million yuan.

On the outflow side, 61 industry theme ETFs experienced net outflows of more than 100 million yuan, including chemical ETFs, and non-ferrous metal ETFs (Southern), which saw reductions of 4.859 billion, 1.696 billion, and 795 million shares, respectively, with net outflows of 4.373 billion, 3.477 billion, and 1.577 billion yuan.

Notably, the healthcare ETF (512170) has recently continued to attract funds, with fund shares quietly reaching new highs.

Healthcare ETF (512170) Fund Share Changes

Some analysts believe that the government work report has listed biomedicine as a new pillar industry, alongside integrated circuits, aerospace, and low-altitude economy, reaffirming policy support for the pharmaceutical industry and injecting confidence into the sector. Coupled with industry innovation and capital factors, the enthusiasm for China’s biopharmaceutical industry is expected to continue rising.

Meanwhile, recently hot chemical and non-ferrous metal ETFs experienced significant fund sell-offs this week.

Chemical ETF (159870) Fund Share Changes

Non-Ferrous Metal ETF (512400) Fund Share Changes and Trends

Some brokerages indicate that the Middle East conflict has driven oil prices sharply higher, raising concerns about inflation. The Fed’s room for rate cuts is compressed in the short term, which suppresses the financial attributes of non-ferrous metals.

It’s worth noting that the year-to-date returns of non-ferrous metal ETFs have been wiped out; as of Friday, the secondary market return for this ETF is -0.52%.

24 ETFs with Weekly Trading Volume Over 10 Billion Yuan

This week, 24 ETFs with trading volumes exceeding 10 billion yuan include stock ETFs and cross-border ETFs. Notably, the A500 ETF and Huatai-PineBridge A500 ETF each had weekly trading volumes over 40 billion yuan.

It’s also worth noting that the S&P Oil & Gas ETF (Harvest) hit a record high this week.

Some brokerages state that U.S.-Iran tensions will add more uncertainty to energy supply and transportation. Under geopolitical influences, oil prices are expected to trend upward in the short term. If the U.S.-Iran situation expands to include the Strait of Hormuz and other Middle Eastern countries, there is further potential for oil prices to rise.

Five ETFs to be launched next week

While major holdings are always a focus for investors, the holdings of actively managed funds tend to lag behind. ETF targets are very clear, and tracking newly listed ETFs can often reveal recent hot stocks. The incremental funds brought by new ETFs are also worth paying attention to.

Currently, one ETF has disclosed its listing for next week, tracking new energy vehicles.

Additionally, five ETFs have announced their issuance next week, tracking sectors such as household appliances, Hong Kong stocks (auto), information technology, Hong Kong stocks (medical), and oil & gas.

Investing involves risks; independent judgment is crucial.

This article is for reference only and does not constitute investment advice. Entering the market is at your own risk.

Edited by Ye Feng, Daily Economic News

Cover image source: Daily Economic News, Liu Siqi (file photo)