As 2025 draws to a close, the ETF market has once again seen products with annual returns doubling.
According to Wind data, as of December 9, five ETFs in the market have achieved year-to-date returns exceeding 100%. Technology-focused sectors, particularly communications equipment and artificial intelligence (AI), have stood out, with related products managed by Cathay, Fullgoal, Southern, and Huabao fund companies.
Among them, the Southern ChiNext AI ETF (159382.OF), launched just over six months ago, has delivered stellar performance. Wind data shows that as of December 9, the fund has posted a year-to-date return of 110.15%, making it one of the few ETFs to double returns this year.
The fund was established on April 23, 2025, and is managed by Pan Shuiyang. Despite its short operational period of just 0.6 years, it has grown rapidly, with assets under management (AUM) reaching 2.573 billion yuan. Since its inception, Pan Shuiyang has delivered a return of 110.15%.
At the end of Q3, its top holdings included leading optical module manufacturers Zhongji Innolight and Eoptolink, as well as upstream optical component supplier TFC Optical Communication. The portfolio also covered diversified AI-related stocks, from hardware to software applications, such as Xunwei Data, Chinasoft International, Allwinner Technology, and Sangfor Technologies.
In the quarterly report, Pan Shuiyang explained his investment rationale. He noted that in August 2025, China’s State Council issued the "Opinions on Deepening the 'AI+' Initiative," systematically advancing the industry. Against the backdrop of increased capital expenditures by overseas cloud providers, demand for high-speed optical modules has surged. Chinese manufacturers, leveraging their technological edge, are deeply embedded in the global AI supply chain, with order visibility extending to 2027. As multimodal large models evolve and AI applications commercialize, hardware demand will remain robust, with strong earnings supporting future sector performance.
High growth often comes with volatility. While doubling returns, the fund experienced a maximum drawdown of -14.55% year-to-date—relatively moderate among the five doubling ETFs—demonstrating resilience amid rapid gains but still reflecting the inherent volatility of thematic investing.
As 2025 nears its end, whether this high-performing ETF can sustain its momentum—and how it adjusts its portfolio in the next phase—will remain under close market scrutiny.
Comments