A new equilibrium in global supply and demand is creating strategic investment opportunities in industrial nonferrous metals. As a cornerstone material for national strategy, these metals are entering a critical window for strategic allocation driven by simultaneous supply and demand forces. On the supply side, the Grasberg copper mine in Indonesia, impacted by a mudslide in 2025, has seen its restart date pushed back from early 2027 to 2028, with current capacity operating at only 40-50%, directly exacerbating the global copper shortage. Concurrently, Guinea's planned export controls on bauxite further strain an already tight aluminum supply chain. On the demand side, China's economic resilience is prominent. The April Manufacturing PMI registered 50.3%, remaining above the expansion-contraction threshold for two consecutive months, with both production and new orders expanding. The first year of the 15th Five-Year Plan sees infrastructure accelerating, with narrow-scope infrastructure investment growing 4.3% year-on-year in the first four months. New infrastructure projects like water networks, power grids, and computing networks continue to unleash real demand for industrial metals like copper and aluminum.
Supported by this dual dynamic of tightening overseas supply and recovering domestic demand, the ChinaAMC CSI Industrial Nonferrous Metals Theme Exchange Traded Open-End Index Securities Investment Fund (Ticker: Industrial Nonferrous Metals ETF, Code: 515040) will officially launch on June 8, providing investors with an efficient tool for one-click exposure to leaders in copper, aluminum, rare earths, tungsten, and other industrial nonferrous metals.
The Purer "Industrial" Leaders: High Beta for Capturing Market Returns
For investors seeking Beta returns, the "purity" of an index determines the sharpness of its gains. The CSI Industrial Nonferrous Metals Theme Index (Ticker: Industrial Nonferrous, Code: H11059.CSI) selects 30 core listed companies with larger market capitalizations and better liquidity from sectors like copper, aluminum, and rare earths within the CSI All Share Index universe, creating a true "industrial nonferrous metals leader portfolio."
From a sector breakdown perspective, the index allocates 30.8% to copper, 20.2% to aluminum, 14.6% to rare earths, and 8.1% to tungsten, with these four core sectors combined exceeding 73%. This concentration is significantly higher than that of specialized nonferrous (57.0%) and general nonferrous metals (56.4%) indices, while precious metals like gold constitute an extremely low proportion, making it a purer "industrial" nonferrous asset. Regarding constituent market cap, the top ten holdings account for 54.20% of the weight, with the average constituent market cap being 123 billion yuan. Companies with a market cap above 50 billion yuan collectively represent over 70% of the index weight, highlighting its large and mid-cap blue-chip characteristics. These companies, with their global resource reserves and cost moats, possess stronger profit release potential during industry upcycles.
Historical performance demonstrates strong cyclical characteristics. Data shows that as of May 26, 2026, the Industrial Nonferrous index gained over 103.24% in the past year, significantly outperforming broader nonferrous indices like CSI Nonferrous Metals, SZSE Nonferrous Metals, Specialized Nonferrous, and Nonferrous Mining over the same period. Over a longer horizon, the index has risen approximately 162.0% in the past decade, with an annualized return of about 10.4%, higher than the CSI 300 Index's annualized return of about 5.1% for the same period.
Fundamentals provide concurrent strong validation. Benefiting from rising commodity prices, sustained recovery in downstream demand, and increasing high-end manufacturing activity, the overall profitability of the industrial nonferrous sector has improved markedly. In the first quarter of 2026, the sector's aggregate net profit attributable to shareholders reached 64.67 billion yuan, a year-on-year increase of 84.56%, providing substantial support for index performance. Valuation-wise, the Industrial Nonferrous index's P/E (TTM) is around 19x, sitting at approximately the 31.37th percentile over the past decade, suggesting safety margin remains against a backdrop of favorable earnings growth expectations.
Twenty-Eight Years of Heritage: The Premier Choice for Passive Investment
When selecting passive investment products, the overall strength of the fund manager is a primary criterion. As China's public fund industry advances into deeper waters of "index investing," ChinaAMC, with twenty-eight years of commitment and innovation, has established an absolute leading position in passive investment management. Since pioneering the launch of China's first ETF, the ChinaAMC SSE 50 ETF, in 2004, ChinaAMC has witnessed the entire journey of China's ETF market from inception to its leapfrog development, with assets under management exceeding 6 trillion yuan by the end of 2025. Through its systematic investment research capabilities, comprehensive product ecosystem, and refined operational systems, it has redefined the industry standard for a premier "ETF powerhouse."
As of March, ChinaAMC managed 122 ETF products with total AUM exceeding 720 billion yuan, maintaining the top spot in equity ETF AUM for 21 consecutive years. It has built a comprehensive product matrix covering core broad-based indices, popular sector themes, commodities, domestic and international markets, and strategic indices, creating a one-stop index investment spectrum from A-share core assets to global markets, providing efficient, diversified, and convenient allocation tools for various investors.
Behind this leading scale lies the industry's most mature and systematic passive investment framework. In 2025, ChinaAMC refined its index business, empowering product creation through active management insights and actively building an investor-centric "research + service + strategy" index investment capability system. In the current era of rapid AI development, ChinaAMC has vigorously developed active quantitative investment research capabilities, accumulating rich research findings and practical strategies in areas like quantitative multi-factor models and AI investment research applications. It has successfully built diversified strategy systems including active quant, index enhancement, and Smart Beta, continuously expanding sources of alpha. Simultaneously, the company has established a robust platform for sharing investment research resources, enabling efficient conversion of research outcomes and comprehensively empowering the entire index investment process.
A formidable investment research team is the core moat of ChinaAMC's passive investment strength. The company's Quantitative Investment Department, established in 2005, is one of the earliest independent quantitative and passive investment teams in the industry, having weathered multiple market cycles and accumulated full-cycle management experience. The team currently comprises 43 members, including 21 seasoned domestic and international portfolio managers and 22 dedicated quantitative researchers. Core members have an average industry experience of over 12 years, with team stability and professional depth far leading the industry.
Amid the era of manufacturing upgrade and strategic resource revaluation, the value of industrial nonferrous metals continues to be prominent. The ChinaAMC Industrial Nonferrous Metals ETF (Code: 515040) is a quality tool for capturing this opportunity and deserves close attention from investors.
Risk Disclosure: This fund is an equity fund primarily investing in constituent stocks and alternative constituent stocks of its target index. Its expected risk and return are higher than those of hybrid funds, bond funds, and money market funds, classifying it as a medium-high risk (R4) product. The specific risk rating result is subject to the rating provided by the fund manager and sales agencies. The subscription fee for this product is 0.3%, the management fee is 0.15%, and the custody fee is 0.05%.
The performance of other funds managed by the fund manager does not guarantee the future performance of this fund. Past index performance does not predict future fund performance. The fund manager is committed to managing and utilizing fund assets with honesty, diligence, and responsibility but does not guarantee that this fund will be profitable or guarantee a minimum return. This material is not a legal document. Views are for reference only. All information or opinions expressed herein do not constitute final investment, legal, accounting, or tax advice. The company makes no warranty regarding the final operational advice based on the content of this material. Under no circumstances shall the company be liable for any losses incurred by any person due to the use of any content in this material. The fund manager reminds investors of the "buyer beware" principle of fund investment. After an investment decision is made, investment risks arising from fund operation status, fluctuations in the fund's listed trading price, and changes in the fund's net asset value shall be borne by the investor. Before investing in this fund, investors should carefully read the fund's Fund Contract, Prospectus, Product Key Facts Statement, and other legal documents, fully understand the fund's risk-return characteristics and product features, seriously consider all risk factors associated with the fund, and fully consider their own risk tolerance based on factors such as investment objectives, investment horizon, investment experience, and asset status. On the basis of understanding the product situation and sales suitability opinions, make rational judgments and prudent investment decisions, and independently bear investment risks. The product promoted in this material is issued and managed by China Asset Management Co., Ltd. Sales agencies do not assume the investment, payment, and risk management responsibilities for the product. The market carries risks, and investment requires caution.
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