The Color ETF (159876), which encompasses leading companies in the nonferrous metals sector, saw its intraday price rise by as much as 0.85% during early trading today (March 11), though it is currently fluctuating near the flat line and is down 0.43% at present. Data from the Shanghai Stock Exchange shows that the ETF has attracted a cumulative inflow of 155 million yuan over the past 10 days, indicating that capital is optimistic about the future performance of the nonferrous metals sector and is positioning itself in advance.
Breaking down the performance by subsector, aluminum industry leaders led the gains significantly. Tianshan Aluminum rose over 4%, while Zhongfu Industrial and Shenhuo Shares advanced more than 3%. Gold producers also showed active performance, with Chifeng Gold and Shanjin International climbing over 1%. Lithium industry leaders delivered impressive results as well, with Yongxing Materials surging more than 7%, and Shengxin Lithium Energy and Ganfeng Lithium rising over 1%. On the other hand, rare earth leaders Zhongxi Nonferrous and China Rare Earth fell more than 4%, ranking among the top decliners and dragging down the index.
Key developments are worth noting in the gold and aluminum sectors: 1. Regarding gold, the underlying drivers supporting its rise can be attributed to three main factors: short-term financial conditions (the U.S. dollar and interest rates), medium-term monetary policies (fiscal and monetary easing), and long-term geopolitical dynamics (great power competition and shifts in global order). While Middle East geopolitical conflicts have only affected short-term liquidity, the combined effects of global military and economic rivalries, dual fiscal and monetary expansion, and central bank gold purchases are the core narrative behind the significant surge in gold prices. The central bank's consecutive 16-month increase in gold reserves may serve as a clear signal. 2. In the aluminum sector, China Securities Co., Ltd. believes that ongoing conflicts in the Middle East continue to threaten the stability of electrolytic aluminum supply in both the Middle East and Europe. China's electrolytic aluminum output is expected to peak around 2026, while new capacity additions overseas remain slow. It is only a matter of time before aluminum prices successfully challenge the 25,000 yuan mark amid a tight supply-demand balance. Current geopolitical tensions in the Middle East are accelerating the deterioration of supply-demand dynamics, suggesting that aluminum prices may not only reach but also sustain levels above 25,000 yuan. When the 25,000 yuan mark is no longer a historical high but a common price level, the electrolytic aluminum sector is poised for a valuation re-rating, targeting a price-to-earnings ratio of 10 times based on the 25,000 yuan anchor.
Notably, the HALO trade has become one of the core themes in global capital markets. The nonferrous metals sector, characterized by its heavy-asset nature, strategic resource scarcity, and essential role in AI infrastructure development, stands as a primary beneficiary of the HALO trade.
Looking ahead, can the nonferrous metals sector continue to rise? Industrial Securities believes that the sector may regain momentum for an upward trend by mid-year. On a broader level, the current nonferrous metals cycle is driven by overseas manufacturing restructuring and unconventional inventory buildup against the backdrop of deglobalization. This cycle differs from traditional monetary cycles and is expected to be more prolonged and sustained in duration.
[The Nonferrous Metals Boom Has Arrived: The "Super Cycle" Is Unstoppable] The underlying index of HuaBao Color ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) comprehensively covers industries such as copper, aluminum, gold, rare earths, and lithium, spanning different phases of the economic cycle including precious metals (for hedging), strategic metals (for growth), and industrial metals (for recovery). This full-category coverage allows for better capture of beta opportunities across the entire sector. Additionally, the ETF is a margin trading security, making it an efficient tool for gaining exposure to the nonferrous metals sector with a single trade.
As of the end of February, HuaBao Color ETF (159876) had a latest size of 2.427 billion yuan, with an average daily trading volume exceeding 100 million yuan over the past month. Among the three ETF products tracking the same underlying index in the market, it ranks first in both size and liquidity.
Note: HuaBao Color ETF (159876) was previously known as Color Leaders ETF in the secondary market.
ETF fee-related information: When investors subscribe for or redeem fund units, subscription and redemption agents may charge a commission of up to 0.5%. Trading fees in the secondary market are subject to the actual charges by securities firms. The ETF does not charge a sales service fee.
Feeder fund fee-related information: The subscription fee rate for HuaBao CSI Nonferrous Metals ETF Feeder Fund (Class A) is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.6% for amounts between 1 million yuan (inclusive) and 2 million yuan, and 1% for amounts below 1 million yuan. The redemption fee rate is 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more. No sales service fee is charged. HuaBao CSI Nonferrous Metals ETF Feeder Fund (Class C) does not charge a subscription fee. The redemption fee rate is 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more. A sales service fee of 0.3% is charged.
Risk warning: HuaBao Color ETF passively tracks the CSI Nonferrous Metals Index. The base date of the index is December 31, 2013, and it was published on July 13, 2015. The index's performance over the past five complete years is as follows: 2021, 35.89%; 2022, -19.22%; 2023, -10.43%; 2024, 2.96%; 2025, 91.67%. The composition of the index's constituent stocks is adjusted according to the index compilation rules, and its historical backtested performance does not indicate future index performance. The descriptions of individual stocks in this article are for illustrative purposes only and do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses the risk level of this fund as R3-Medium Risk, suitable for investors with a balanced (C3) or higher risk profile. The suitability matching opinion is subject to the sales institution. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses arising from the use of the content herein. Fund investment carries risks. The past performance of a fund does not indicate its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest in funds with caution.
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