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.

Daily Economic News Reporter | Ye Feng Daily Economic News Editor | Xiao Ruidong

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 related to healthcare were favored by funds, while chemical and non-ferrous metal ETFs were sold off.

Industry Theme ETFs Net Outflow of 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 this week, stock ETFs and cross-border ETFs in Shanghai and Shenzhen had a combined net outflow of 8.76 billion yuan, broad-based index ETFs saw a net inflow of 9.078 billion yuan, and industry theme ETFs experienced a net outflow of 26.2 billion yuan.

Breaking down further, the main broad-based index funds showed that this week, 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 by size had a total net inflow of 12.412 billion yuan this week, with the CSI 500 ETF (Southern) and CSI 300 ETF (Huatai-PineBridge) each net inflowing over 4.3 billion yuan.

Performance of Major Index-Related ETFs This Week

Some analysts pointed 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, securities 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.

Chemical and Non-Ferrous Metal ETFs Being Sold Off

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 their shares by 2.374 billion, 865 million, and 461 million respectively, with net inflows of 794 million, 786 million, and 624 million yuan.

On the outflow side, 61 industry theme ETFs saw 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 been continuously favored by funds, with its 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 popular 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 securities firms noted that the Middle East conflict has driven oil prices sharply higher, raising concerns about inflation. The Fed’s room for rate cuts has been 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 year-to-date return was -0.52%.

24 ETFs with weekly trading volume exceeding 10 billion yuan

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

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

Some securities firms stated that U.S.-Iran attacks could bring more uncertainty to energy supply and transportation. Under geopolitical influences, oil prices are expected to rise 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 increase.

Five ETFs to be launched next week

Fund holdings are always a hot topic for investors, but the holdings of actively managed funds tend to lag behind. In contrast, ETF targets are very clear, and tracking newly listed ETFs can often reveal recent hot stocks. The influx of funds from newly launched ETFs is also worth paying attention to.

Currently, one ETF has disclosed plans to list next week, tracking new energy vehicles.

Additionally, five ETFs have announced upcoming launches, tracking sectors such as household appliances, Hong Kong stocks (auto), information technology, Hong Kong stocks (medical), and oil and natural gas.

Cover image source: Daily Economic News Media Library

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