Zhong Guo Jing Ji Wang·2025-07-07 06:36Core Viewpoint - The article discusses the upcoming launch of the Fangzheng Fubon CSI All-Share Free Cash Flow ETF, highlighting its investment strategy focused on companies with strong free cash flow generation capabilities and the advantages of investing in this ETF [1][20]. Group 1: Free Cash Flow Concept - Free cash flow is defined as the cash available for distribution after accounting for capital expenditures and working capital needs, illustrated through a small business example [3][4]. Group 2: Index Characteristics - The Fangzheng Fubon CSI All-Share Free Cash Flow ETF tracks the CSI All-Share Free Cash Flow Index, which selects stocks based on free cash flow yield, focusing on industries like coal, transportation, and consumer goods [4][5]. - The index excludes sectors with high cash flow volatility, such as finance and real estate, ensuring a more stable and sustainable cash flow profile [4]. Group 3: Index Performance Highlights - The CSI All-Share Free Cash Flow Index has significantly outperformed major indices, achieving a return of 342.88% from December 31, 2013, to June 9, 2025, compared to 62.08% for the Shanghai Composite Index [6][8]. - The index also boasts a high dividend yield of 4.8%, indicating strong profitability and financial health among its constituent companies [8][9]. Group 4: Investment Advantages - The ETF offers lower investment thresholds, allowing participation with as little as 1 yuan, making it accessible for retail investors [13]. - It supports regular investment plans, appealing to investors looking for systematic investment strategies [13]. Group 5: Target Investor Profile - The ETF is suitable for risk-averse investors seeking stable cash flow, those looking to balance their portfolios, and investors aiming to capture policy-driven opportunities in high free cash flow companies [15][16][18]. Group 6: Current Market Context - The article emphasizes the importance of free cash flow in the current economic landscape, where companies with strong cash flow are better positioned to navigate uncertainties and capitalize on growth opportunities [18][19].