The A-share market saw overall pressure on value-based assets yesterday, with the previously strong-performing cash flow strategy also experiencing a pullback. However, driven by multiple catalysts including the HALO hard asset allocation theme, external geopolitical disturbances, and increased market demand for "certain" assets, cash flow-themed ETFs still attracted capital inflows against the trend. Notably, the popular All-Share Cash Flow ETF (563390) recorded net inflows of 120 million yuan yesterday, making it the only ETF tracking the CSI Cash Flow Index with single-day net inflows exceeding 100 million yuan during the same period.
Extending the time horizon, the trend of capital allocation continues to strengthen: since the beginning of the year, the All-Share Cash Flow ETF (563390) has accumulated total inflows of 2.543 billion yuan, driving its fund shares and size to climb to 2.383 billion units and 3.398 billion yuan respectively, both setting new record highs since its inception.
It is noteworthy that the CSI Cash Flow Index completed its quarterly rebalancing yesterday. This rebalancing aligns more closely with the current market theme: the top three sectors have been adjusted to Automobiles (11.8%), Transportation (11.2%), and Petroleum & Petrochemicals (9.6%), while also increasing allocation to the undervalued Household Appliances sector (7.9%), further focusing on hard assets characterized by heavy capital investment and low obsolescence rates under the HALO framework. Leveraging its disciplined rebalancing mechanism, the index has timely positioned itself in high-quality, less crowded assets, potentially enabling more precise capture of industries and companies with improving cash flow quality.
This adjustment reflects a profound shift in the current market investment logic: amid the ongoing promotion of "anti-involution" policies, corporate capital expenditure has become more rational, and operating cash flow continues to improve. The market has shifted from solely focusing on book profits to concentrating on high-quality targets that truly possess the ability to generate sustained free cash flow. Following this rebalancing, the "high dividend" attribute of the CSI Cash Flow Index may be further strengthened. As of the latest data, the index's dividend yield has risen to 3.64%. Compared to the current 1.81% yield on the 10-year government bond, the yield spread advantage has significantly widened, potentially making it increasingly attractive in an environment of asset scarcity.
Looking back at historical performance, the CSI Cash Flow Index, tracked by the All-Share Cash Flow ETF (563390) and its feeder funds (Class A 024622 / Class C 024623), has also demonstrated relatively outstanding long-term performance. Wind data shows that the CSI Cash Flow Total Return Index has achieved a cumulative gain of 874.37% since its base date, with an annualized return of 21.17% over the period. This surpasses the annualized returns of 16.08% and 16.20% for the CSI 300 Cash Flow Total Return Index and CSI 500 Cash Flow Total Return Index over the same interval, respectively. It is expected to become another important core holding in asset portfolios, leveraging its long-term allocation value through market cycles.
Furthermore, according to an announcement by Huatai-PineBridge Fund, the All-Share Cash Flow ETF (563390) will change its extended ticker symbol on the exchange to "All-Share Cash Flow ETF Huatai-PineBridge" starting March 18, 2026. This change aims to better align the index name with the product's abbreviated name and clarify its investment positioning. As one of China's first ETF managers, Huatai-PineBridge was among the earliest fund companies to deploy dividend strategy ETFs and possesses over 19 years of extensive operation and management experience in the Smart Beta strategy field. In addition to the All-Share Cash Flow ETF (563390), it has also created a suite of five "Dividend Strategy" products employing Smart Beta strategies, including the market's first low-volatility dividend theme ETF – the Low Volatility Dividend ETF Huatai-PineBridge (512890), and the first Smart Beta ETF – the Dividend ETF Huatai-PineBridge (510880). Exchange data shows that as of March 16, 2026, the total size of its dividend-themed ETFs reached 52.975 billion yuan.
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