Harvest Fund's Index-Enhanced Products Deliver "Excess" Returns This Year

Deep News12-05

Against the backdrop of this year's structural bull market, index-enhanced funds—which combine passive indexing with active management—have gained increasing attention.

While traditional index funds aim to replicate benchmark performance (Beta returns), index-enhanced ETFs go a step further by incorporating active strategies such as quantitative models, sector rotation, and stock selection to generate Alpha returns while controlling tracking errors. This approach better reflects fund managers' market insights and active management capabilities.

Harvest Fund, known for its active management and in-depth research, has delivered impressive "excess" returns through its strategically positioned index-enhanced products this year.

According to Wind data, as of December 1, 2025, Harvest Fund manages 10 index-enhanced products (initial funds only) covering major benchmarks such as the SSE Index, CSI 300, CSI 500, ChiNext Index, STAR Composite Index, STAR 50, CSI 1000, and the high-growth CSI Semiconductor Index. Seven of these funds, established before 2025, have outperformed their respective benchmarks year-to-date.

Notably, the Harvest CSI Semiconductor Index Enhanced Fund A (014854) surged 51.21%, beating its benchmark (49.07%). The Harvest ChiNext Enhanced ETF (159675), the first of its kind, returned 49.09% versus its benchmark's 44.40%, delivering nearly 5 percentage points of excess returns. The Harvest CSI 500 Index Enhanced Fund A (008778) and CSI 1000 Index Enhanced Fund A (016776) also outperformed, with excess returns exceeding 6 and 10 percentage points, respectively.

Unlike traditional index funds, enhanced ETFs emphasize "outperformance"—retaining broad market exposure while capturing structural opportunities through active strategies. This "Beta + Alpha" dual approach offers investors a balanced mix of market returns and excess gains.

To help investors beat benchmarks, Harvest has expanded its index-enhanced lineup this year, launching innovative products like the first SSE Index Enhanced ETF (562810) and STAR Composite Index Enhanced ETF (588670). With over two decades of research-driven investing, Harvest combines passive and active strategies to identify smarter Beta opportunities, supported by a robust investment, research, trading, and risk management team.

Liu Bin, Chief Investment Officer of Smart Beta and Index Investing at Harvest, emphasized that their enhanced products prioritize investment success rates—selecting high-quality sectors, companies, and valuations while minimizing benchmark deviations to maximize Alpha.

Performance highlights (as of December 1, 2025, data sourced from Harvest Fund and custodian verification): - **Harvest CSI Semiconductor Index Enhanced A (014854)**: 51.21% vs. 49.07% (benchmark). - **Harvest ChiNext Enhanced ETF (159675)**: 49.09% vs. 44.40%. - **Harvest CSI 500 Index Enhanced A (008778)**: 29.25% vs. 22.84%. - **Harvest CSI 1000 Index Enhanced A (016776)**: 33.75% vs. 22.82%.

Risk Disclosure: Investments involve risks. Investors should review fund documents and assess risk tolerance based on individual circumstances. Past performance does not guarantee future results.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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