As tensions in the U.S.-Iran conflict enter their eighth week, fluctuating prospects of war versus negotiation have pushed international oil prices into a phase of historic high volatility. The disruption of navigation through the Strait of Hormuz has become a global focal point and a key driver shaping the future trajectory of the world economy. The Strait of Hormuz, located between Oman and Iran, connects the Persian Gulf, the Gulf of Oman, and the Arabian Sea. Its depth accommodates the world's largest crude oil tankers, making it one of the most critical petroleum chokepoints globally. Average daily oil flow through Hormuz is approximately 20.9 million barrels per day, representing about 20% of global liquid petroleum consumption. Currently, shipping through the strait is reported to be "almost completely halted" due to U.S.-Iran blockades.
Amid this backdrop, Huabao Fund, a major ETF provider with assets under management exceeding hundreds of billions, has launched its significant new product—the Petroleum ETF Huabao (159019)—today, April 23rd. This fund tracks the Guozheng Oil and Natural Gas Index. Its portfolio comprises 50 A-shares covering the entire oil and gas industry chain, including exploration and production, equipment and services, and gas transmission and distribution. It offers investors a powerful new ETF tool to capture investment opportunities in core assets tied to "China's oil power."
**Full-Chain Coverage: One-Click Access to A-Share Oil and Gas Leaders**
At a time when the future of the U.S.-Israel-Iran conflict remains uncertain, China's oil and gas industry is increasingly demonstrating its strategic value as a cornerstone of the nation's "energy security" strategy. A recent article by an official from the National Energy Administration's Oil and Gas Department, titled "Striving to Create a New Landscape of High-Quality Development in the Oil and Gas Industry," has set the tone for China's 15th Five-Year Plan for the sector. It emphasizes the industry's role as a pillar of the national economy, tasked with ensuring supply, enabling transition, and promoting coordinated development. Key future directions include advancing oil and gas exploration and production to increase reserves and output, maintaining high investment levels and capacity building, defining integration paths for oil and gas with new energy sources like hydrogen and green fuels, accelerating the construction of digital and intelligent oil fields, and upgrading oil and gas enterprises into "comprehensive energy service providers." The focus will also be on leveraging artificial intelligence and digital applications to enhance intelligent exploration and development, achieving technological breakthroughs in critical areas such as deep-earth, deep-sea, and unconventional resources.
The Petroleum ETF Huabao (159019) tracks the Guozheng Oil and Natural Gas Index (399439). This index selects constituents from the CSI All Share Index universe, focusing on companies involved in oil and gas exploration, equipment and services, and gas transmission and distribution. A weighting adjustment factor is applied during periodic rebalancing to ensure no single stock in the exploration or equipment/services sectors exceeds 15% weight, no single stock in other sectors exceeds 3%, and the combined weight of the top five constituents does not exceed 60%.
As of the end of March 2026, the index comprised 50 stocks spanning the oil and gas industry chain. Classified by Shenwan primary industry, the Oil & Petrochemicals sector accounts for 61.04% of the index, indicating a high concentration in the core industry. A breakdown by Shenwan tertiary industry shows refining and chemicals (26.29%), extraction (18.21%), gas utilities (13.13%), and equipment (12.36%), reflecting a relatively balanced distribution across key oil and gas sub-sectors. The portfolio blends value and growth characteristics, with large-cap state-owned enterprises providing a stable base for profits and dividends, while small and mid-cap companies offer exposure to opportunities in segments like oilfield services and transportation.
**Oil and Gas Strength: Combining Dividend Attributes and Profitability**
The Guozheng Oil and Natural Gas Index has demonstrated strong long-term performance since 2021, outperforming peer indices on metrics such as returns and drawdowns. From January 4, 2021, to March 31, 2026, the index's total return version delivered an annualized return of 19.65%, significantly higher than the 17.76% return of a comparable oil and gas industry index and substantially outperforming the CSI 300 Index's return of -0.64% over the same period, highlighting its strong performance during the energy cycle upswing. During this timeframe, the index's maximum drawdown was -27.82%, notably lower than the CSI 300's -41.56%, indicating greater resilience during market downturns. Its Sharpe ratio of 0.96 also suggests a superior risk-return profile compared to both peer oil and gas indices and the CSI 300.
The index's historical trajectory shows a high correlation with oil prices, generally moving in sync with Brent crude. While the index faced pressure during periods of declining oil prices, the recent recovery in oil prices has led to a significant rebound. China's energy security policies are driving long-term investment in resource development, and high dividend strategies employed by state-owned enterprises are attracting long-term capital allocation, gradually shifting the sector's characteristics towards "weaker cyclicality and stronger dividend attributes." As of March 31, 2026, the index's trailing 12-month dividend yield was approximately 3.32%, significantly higher than that of the CSI 300 and petrochemical industry indices, placing it in the higher range among major energy indices. In the current low-interest-rate environment where capital favors high-dividend assets, the Guozheng Oil and Natural Gas Index, with its dividend advantages and industry resource endowment, is well-positioned to continue offering attractive cash returns.
In the field of index investing, Huabao Fund adheres to the principle of financial services supporting the real economy. Guided by professional, value-driven, and long-term investment philosophies, the firm is committed to launching ETF products with sustained viability. It aims to support industrial upgrading and the development of new quality productive forces through efficient technological financial services. Huabao Fund has successfully established a diverse ETF matrix covering themes such as "AI Industry Chain," "Cyclicals," "Consumption," "Pharmaceuticals," "High Dividend," and "Major Broad-Based Indices." According to data from the Shanghai and Shenzhen Stock Exchanges, as of April 21, 2026, Huabao Fund's equity ETF AUM reached 130.612 billion yuan, firmly ranking within the top ten in the industry. Its cyclical index product suite is particularly distinctive, including the Chemicals ETF Huabao (516020) and its feeder funds (A 012537, C 012538), the Nonferrous Metals ETF Huabao (159876) and its feeder funds (A 017140, C 017141), the Agriculture, Animal Husbandry, and Fishery ETF Huabao (159275) and its feeder funds (A 013471, C 013472), and the Huabao Oil & Gas LOF (A 162411, C 007844). As of March 31 this year, the Chemicals ETF Huabao (516020) had assets exceeding 6 billion yuan; the Nonferrous Metals ETF Huabao (159876) had assets of 1.891 billion yuan, with average daily turnover exceeding 100 million yuan in the past month, ranking first in both size and liquidity among the three ETFs tracking the same underlying index in the market. The Huabao Oil & Gas LOF is currently the largest oil and gas LOF fund by size in the market. The launch of the Petroleum ETF Huabao (159019) adds a crucial component to the further diversification of Huabao Fund's cyclical ETF matrix.
**Special Reminder:** Recent market volatility may be significant. Short-term price fluctuations are not indicative of future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position management and risk control.
**ETF Fee Information:** When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges and registration institutions. For fee rates of off-exchange funds, please refer to the fund's legal documents.
**Note:** As of March 31, 2026, there were 7 domestic oil-themed LOFs. Among them, the Huabao Oil & Gas LOF had assets of 4.261 billion yuan, with average daily turnover exceeding 560 million yuan over the past six months, making it the largest and most liquid product in its category.
**Data Source:** Shanghai Stock Exchange, Shenzhen Stock Exchange, Hong Kong Exchanges, Fund Periodic Reports, etc.
**Risk Disclosure:** The Petroleum ETF Huabao passively tracks the Guozheng Oil and Natural Gas Index. The index's base date is December 31, 2002, and it was launched on December 30, 2014. The index's performance for the last five complete calendar years is as follows: +27.53% in 2021, +0.05% in 2022, +7.01% in 2023, +10.90% in 2024, and +10.13% in 2025. The index constituents are adjusted according to its compilation rules. Its past performance does not predict future results.
The fund manager has assigned a risk rating of R4 (Medium-High Risk) to the Huabao Oil & Gas LOF, suitable for Aggressive (C4) and higher risk profile investors. The fund manager has assigned risk ratings of R3 (Medium Risk) to the Petroleum ETF Huabao, the Chemicals ETF Huabao and its feeder funds, the Nonferrous Metals ETF Huabao and its feeder funds, and the Agriculture, Animal Husbandry, and Fishery ETF Huabao and its feeder funds, suitable for Balanced (C3) and higher risk profile investors.
The above funds are issued and managed by Huabao Fund. Distributors do not assume responsibility for the investment, repayment, or risk management of the products. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Summary," and other legal documents to understand the risk-return characteristics of the funds and choose products that match their risk tolerance. Sales institutions (including the fund manager's direct sales channels and other distributors) assess the risk of the above funds according to relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions provided by sales institutions and base their decisions on the matching results. Appropriateness opinions may vary among sales institutions, and the risk rating assigned by a sales institution cannot be lower than the rating assigned by the fund manager. Disclosures regarding fund risk-return characteristics in the fund contract and the fund's risk rating may differ due to different consideration factors. Investors should understand the risk-return profile of the funds and make prudent choices based on their investment objectives, time horizon, experience, and risk tolerance, bearing their own investment risks. The China Securities Regulatory Commission's registration of the above funds does not indicate a substantive judgment or guarantee of their investment value, market prospects, or returns. Any information appearing herein is for reference only, and investors are solely responsible for their independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. The past performance and net asset value of the above funds do not预示 their future performance. The performance of other funds managed by the fund manager does not guarantee the performance of the above funds. Funds carry risks; investment requires caution.
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