On Friday (October 10th), the market consolidated, and the Non-ferrous Metals Leading ETF (159876), which encompasses industry leaders in the non-ferrous metals sector, retreated alongside the broader market. The intraday price closed down 3.33%, with total trading volume reaching 172 million yuan, setting a new historical high for trading volume!
Notably, funds seized the opportunity to accumulate on dips! The Non-ferrous Metals Leading ETF (159876) attracted net inflows of 116 million shares throughout the day! According to Shenzhen Stock Exchange data, the ETF absorbed 117 million yuan in a single day yesterday. Looking at a longer timeframe, it has accumulated 210 million yuan in inflows over the past 20 trading days. Data shows that as of October 9th, the Non-ferrous Metals Leading ETF (159876) reached a latest scale of 493 million yuan, hitting another historical high!
Among constituent stocks, "Dr. Copper" remained resilient, with Baiyin Nonferrous Group Co.,Ltd. hitting the daily limit against market trends, Jiangxi Copper rising over 7%, and Yunnan Copper gaining more than 1%. Aluminum stocks also showed impressive performance, with Shenhuo Stock rising over 2% and Nanshan Aluminum gaining more than 1%. On the other hand, Hanrui Cobalt, Western Gold dropped over 9%, while Huayou Cobalt, Huaxi Nonferrous, and Tianqi Lithium fell over 7%, leading the declines and dragging down index performance.
Why are funds actively accumulating the Non-ferrous Metals Leading ETF? Looking at specific sectors:
1. Gold: Israel and Hamas reached a ceasefire agreement, and gold prices surged then retreated due to easing geopolitical tensions. What's the outlook for gold? Bank of America states that gold has risen nearly 50% this year, marking the best annual performance since 1979. This year's rally could signal a gold bull market that may continue until 2026.
Industry insiders point out that historically, major gold bull markets are often preceded by short-term profit-taking. From a technical perspective, after gold broke through the important psychological level of $4,000, it naturally faces technical correction pressure. Rather than betting on gold as a single track, it's better to look at positioning across the entire non-ferrous metals sector.
2. Copper: During the holiday period, commodity prices continued to rise. Copper price surges ignited capital enthusiasm, ushering in the spring of "Dr. Copper." Nanhua Futures noted that an accident at the world's second-largest copper mine (Indonesia's Grasberg copper mine) before the holiday may lead to drastically tightened global copper supply expectations for this year and next, driving up copper metal prices.
3. Rare earths: On October 9th, the Ministry of Commerce issued new regulations, announcing decisions to implement export controls on overseas rare earth items and related technologies. Guojin Securities believes that with price increases, supply-side reform implementation, supply disruptions, and enhanced strategic attributes of the sector, the rare earth sector will continue to evolve with both valuation and earnings growth.
Shenwan Hongyuan Securities points out that the non-ferrous metals industry maintains high prosperity levels. Precious metals are affected by Federal Reserve rate cuts, geopolitical conflicts, and tariff policies, with international gold prices breaking through the $4,000 threshold. For industrial metals, copper and aluminum prices continue to rise due to supply constraints from Indonesian mine shutdowns and the continuation of a weak dollar environment. Rare earth prices remain strong due to tightened export control policies. The non-ferrous metals mining and smelting processing industry shows both volume and price increases, maintaining high profit growth rates.
**"Metal Heart" of Future Industries, "Golden Blood" of Modern Industry**
Different non-ferrous metals have inconsistent prosperity levels, rhythms, and driving factors, making differentiation inevitable. If optimistic about the non-ferrous metals sector, a relatively relaxed approach is to capture the entire sector's beta through comprehensive coverage. The Non-ferrous Metals Leading ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141), which encompass industry leaders in non-ferrous metals, passively track the CSI Non-ferrous Metals Index. The weight ratios for copper, gold, aluminum, rare earths, and lithium industries are 27.6%, 14.5%, 13.1%, 10.4%, and 8.4% respectively. Compared to investing in a single metal industry, it can serve to diversify risks and is suitable as part of an investment portfolio allocation.
Risk Warning: The Non-ferrous Metals Leading ETF and its feeder funds passively track the CSI Non-ferrous Metals Index. The index base date is December 31, 2013, and was published on July 13, 2015. The index's gains and losses over the past 5 complete years were: 2020: 35.84%; 2021: 35.89%; 2022: -19.22%; 2023: -10.43%; 2024: 2.96%. Index constituent composition is adjusted timely according to the index compilation rules, and backtested historical performance does not predict future index performance. Index constituent stocks mentioned in this article are for display purposes only. Individual stock descriptions do not constitute any form of investment advice, nor do they represent holding information or trading movements of any fund under the management company. The fund management company assesses this fund's risk level as R3-Medium Risk, suitable for balanced (C3) and above investors. Please refer to sales institutions for appropriateness matching opinions. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors must take responsibility for any autonomous investment decisions. Additionally, any views, analyses, and predictions in this article do not constitute investment advice in any form to readers, nor do they bear any responsibility for direct or indirect losses caused by using the content of this article. Fund investment carries risks. Past performance of funds does not represent future performance. Performance of other funds managed by the fund management company does not constitute a guarantee of fund performance. Fund investment requires caution.
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