1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Last week, 15 new products were issued in the US, with a stable issuance and obvious diversification of strategies. BlackRock issued an international version of the factor rotation ETF, and Defiance issued a long - volatility product [1][6]. - In the US, the inflows of equity and bond ETFs increased last week, and gold ETFs re - entered the market following the upward trend. Some leveraged ETFs and Indian ETFs had outflows [1][10]. - Momentum continued to lead Smart Beta in the US. Since the beginning of this year, the US Smart Beta has generally shown a pattern where growth outperforms value, and BlackRock's factor rotation ETF had a better performance than most single - factor products and the S&P 500 [1][15]. - In June 2025, the total amount of non - money public funds in the US increased by $0.78 trillion compared to May. From July 23rd to July 30th, the outflows of domestic stock funds in the US expanded again, while the inflows of bond products further increased [1][16]. 3. Summary According to the Directory 3.1 US ETF Innovation Products: BlackRock Issues International Version of Factor Rotation ETF - Last week, 15 new ETFs were issued in the US, with diversified strategies including AI infrastructure, global macro - hedge, digital currency - related bonds, single - stock leveraged reverse products, and more. BlackRock issued an international version of the factor rotation ETF, which focuses on five major types of factors and deviates from factors according to an optimized model [6][9]. - Defiance issued a long - volatility product composed of 0.75 - 1 times VIX index futures and 1.5 - 2 times S&P 500 shorts, providing a tool for investors to express views under extreme risks [1][7]. 3.2 US ETF Dynamics 3.2.1 US ETF Funds: Inflows of Equity and Bond ETFs Increase - Last week, the inflows of equity and bond ETFs in the US increased, and gold ETFs re - entered the market. Vanguard and BlackRock's S&P 500 ETFs had similar inflows, the Russell 2000 ETF had inflows after continuous outflows, and short - term and corporate bond ETFs also had inflows. Some leveraged ETFs and Indian ETFs entered the top ten of outflows [1][10]. - The top ten inflow and outflow ETFs in the US from August 1st to August 7th are listed, with Vanguard S&P 500 ETF having an inflow of $32.69 billion and Invesco NASDAQ 100 ETF having an outflow of $22.47 billion [12]. 3.2.2 US ETF Performance: Momentum Continues to Lead Smart Beta - Although low - volatility and small - cap stocks rebounded at the beginning of this year, the US Smart Beta has generally shown a pattern where growth outperforms value. Momentum has continued its strong performance since 2024, with the iShares MSCI USA Momentum Factor ETF having a year - to - date return of 19.27% [15]. - BlackRock's factor rotation ETF had a return of 11.29% during the same period, with a scale of over $20 billion, outperforming most single - factor products and the S&P 500 (8.6%) [15]. 3.3 Recent Capital Flows of US Ordinary Public Funds - In June 2025, the total amount of non - money public funds in the US was $22.69 trillion, an increase of $0.78 trillion compared to May. The scale of domestic stock products increased by 4.26%, slightly lower than the stock increase [16]. - From July 23rd to July 30th, the domestic stock funds in the US had a total outflow of about $18 billion, and the inflows of bond products further increased [16].

Group 1 - The cash flow ETF (159399) announced its sixth dividend distribution with a ratio of 0.25%, with the record date on August 13 and the payment date on August 18 [1] - The cash flow ETF utilizes free cash flow as a stock selection factor, closely tracking the FTSE China A-Share Free Cash Flow Focus Index, excluding financial and real estate sectors, and selecting the top 50 stocks with the highest free cash flow rates [1] - The FTSE cash flow index has shown outstanding long-term performance, with a cumulative increase of 624.37% since the base date of December 31, 2013, significantly outperforming the CSI 300's 133.67% and the CSI Dividend's 624.37%, consistently beating the CSI Dividend index for nine consecutive years [1] Group 2 - The dividend distribution plan indicates that the benchmark date for this month's dividend of 0.25% corresponds to a distribution of 0.0026 yuan per share based on a net asset value of 1.0562 [2]

Group 1 - The core theme of the forum is the high-quality development of wealth management in the Guangdong-Hong Kong-Macao Greater Bay Area, with participation from leading funds, wealth management, insurance, and private equity institutions [1] - Wang Qing, Chairman of Chongyang Investment, emphasized the importance of accurate pricing in a mature asset management market, which can release potential demand [3][9] - The investment strategy of Chongyang Investment focuses on achieving stable Alpha returns, moving away from subjective long positions towards a more balanced approach [3][8] Group 2 - Chongyang Investment's "multi-fund manager co-management model" under the decision-making committee aims to enhance investment performance by leveraging the strengths of multiple fund managers [8] - The investment return hierarchy is structured as a pyramid, with Pure Beta at the bottom and Pure Alpha at the top, indicating varying levels of risk and management complexity [6][7] - The firm recognizes the need for accurate pricing in the market, where management fees should correspond to the level of risk and return, with lower fees for Pure Beta and higher for Pure Alpha [9] Group 3 - Chongyang Investment has a long-standing partnership with China Merchants Bank, which has supported the issuance of their first private fund product, enhancing their growth and market presence [10] - The firm aims to contribute to the financial development of the Greater Bay Area by strengthening its services and collaboration with China Merchants Bank [10]

Core Insights - The WisdomTree Japan Hedged Equity ETF (DXJ) debuted on June 16, 2006, and offers broad exposure to the Asia-Pacific (Developed) ETFs category [1] - The ETF industry has been traditionally dominated by market capitalization weighted indexes, but smart beta strategies are gaining traction among investors seeking to outperform the market [2][3] - The WisdomTree Japan Hedged Equity ETF has amassed over $3.65 billion in assets, making it one of the larger ETFs in its category [5] Fund Details - The fund is sponsored by WisdomTree and aims to match the performance of the WisdomTree Japan Hedged Equity Index, which provides exposure to Japanese equity markets while neutralizing currency fluctuations [5] - The ETF has an annual operating expense ratio of 0.48% and a 12-month trailing dividend yield of 3.61% [6] - The fund's holdings are primarily in U.S. dollars, accounting for approximately 99.07% of total assets, with top holdings including Mitsubishi Ufj Financial Group and Toyota Motor Corp [7] Performance Metrics - Year-to-date, the WisdomTree Japan Hedged Equity ETF has increased by approximately 10.64%, and it has risen about 35.91% over the last 12 months as of August 7, 2025 [8] - The ETF has a beta of 0.43 and a standard deviation of 19.49% over the trailing three-year period, indicating a medium risk profile [9] Alternatives - Other ETFs in the space include JPMorgan BetaBuilders Japan ETF (BBJP) with $13.44 billion in assets and iShares MSCI Japan ETF (EWJ) with $15.62 billion in assets, offering lower expense ratios [11] - Investors may consider traditional market cap weighted ETFs for potentially cheaper and lower-risk options [11]

Core Insights - The Schwab Fundamental International Small Company Index ETF (FNDC) debuted on August 13, 2013, and provides broad exposure to the Foreign Small/Mid Value ETF category [1] - FNDC is managed by Charles Schwab and aims to match the performance of the Russell RAFI Developed ex-U.S. Small Co. Index [5] Fund Overview - FNDC has accumulated over $2.99 billion in assets, making it one of the larger ETFs in its category [5] - The fund has an annual operating expense of 0.39% and a 12-month trailing dividend yield of 2.70% [6] Performance Metrics - Year-to-date, FNDC has increased by approximately 26.46%, and it is up about 29.98% over the last 12 months as of August 7, 2025 [9] - The fund has a beta of 0.80 and a standard deviation of 15.68% over the trailing three-year period, indicating a low-risk profile [10] Holdings and Sector Exposure - FNDC's top 10 holdings account for about 1.56% of its total assets, with Celestica Inc (CLS) being the largest at approximately 0.23% [7][8] - The fund holds around 1727 different stocks, effectively diversifying company-specific risk [10] Alternatives in the Market - Other ETFs in the Foreign Small/Mid Value segment include Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) and WisdomTree Dynamic International SmallCap Equity Fund (DDLS), with assets of $365.06 million and $438.6 million respectively [12] - PDN has an expense ratio of 0.47%, while DDLS has an expense ratio of 0.48% [12]

Core Insights - The Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) is a smart beta ETF launched on November 8, 2017, providing broad exposure to the Large Cap Growth category [1] - OMFL has accumulated over $4.96 billion in assets, positioning it as one of the larger ETFs in its category [5] - The ETF aims to match the performance of the Russell 1000 Invesco Dynamic Multifactor Index, which selects equity securities from the 1,000 largest U.S. companies [6] Investment Strategy - Smart beta ETFs, like OMFL, utilize non-cap weighted strategies to potentially outperform traditional market cap weighted indexes [3] - OMFL employs a rules-based methodology to select stocks based on specific fundamental characteristics [4] Cost Structure - OMFL has an annual operating expense ratio of 0.29%, which is competitive within its peer group [7] - The ETF offers a 12-month trailing dividend yield of 0.70% [7] Sector Allocation and Holdings - The largest sector allocation for OMFL is Information Technology, comprising approximately 26.4% of the portfolio [8] - Top holdings include Apple Inc (7.58%), Microsoft Corp, and Meta Platforms Inc, with the top 10 holdings accounting for about 41.49% of total assets [9] Performance Metrics - As of August 7, 2025, OMFL has gained approximately 8.25% year-to-date and 22.15% over the past year [11] - The ETF has a beta of 1.01 and a standard deviation of 15.93% over the trailing three-year period, indicating effective diversification of company-specific risk [11] Alternatives - Other ETFs in the Large Cap Growth space include Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), with VUG having $182.33 billion in assets and an expense ratio of 0.04%, while QQQ has $362.46 billion and an expense ratio of 0.20% [12]

Core Insights - The ProShares Russell 2000 Dividend Growers ETF (SMDV) is designed to provide broad exposure to the Style Box - Small Cap Value category and was launched on February 3, 2015 [1] - The fund has accumulated over $643.67 million in assets, making it an average-sized ETF in its category [5] - SMDV seeks to match the performance of the Russell 2000 Dividend Growth Index, targeting companies that have increased dividend payments for at least 10 consecutive years [5] Fund Characteristics - The annual operating expenses for SMDV are 0.40%, which is competitive within its peer group [6] - The ETF has a 12-month trailing dividend yield of 2.68% [6] - The fund has a beta of 0.83 and a standard deviation of 19.57% over the trailing three-year period, indicating medium risk [10] Sector Exposure - The ETF has the highest allocation in the Financials sector, comprising approximately 32% of the portfolio [7] - The top three sectors also include Industrials and Utilities [7] - Spartannash Co (SPTN) is the largest individual holding at about 1.31% of total assets, with the top 10 holdings accounting for approximately 9.4% of total assets [8] Performance Metrics - SMDV has experienced a loss of about -2.99% year-to-date and a gain of approximately 0.91% over the past year as of August 7, 2025 [10] - The fund has traded between $58.95 and $75.88 in the past 52 weeks [10] - With around 108 holdings, SMDV effectively diversifies company-specific risk [10] Alternatives - Other ETFs in the same space include iShares Core Dividend Growth ETF (DGRO) and Vanguard Dividend Appreciation ETF (VIG), with assets of $32.68 billion and $93.36 billion respectively [12] - DGRO has a lower expense ratio of 0.08% compared to SMDV, while VIG has an expense ratio of 0.05% [12]

Core Viewpoint - The ALPS (OUSA) is a smart beta ETF launched to provide broad exposure to the Style Box - Large Cap Value category, with a focus on outperforming traditional market cap weighted indexes [1][5]. Fund Overview - OUSA was launched on July 14, 2015, and is designed to match the performance of the FTSE US Qual / Vol / Yield Factor 5% Capped Index [1][5]. - The fund is managed by Alps and has accumulated over $810.22 million in assets, categorizing it as an average-sized ETF in its segment [5]. Cost Structure - The annual operating expenses for OUSA are 0.48%, which is competitive with most peer products in the same space [6]. - The ETF has a 12-month trailing dividend yield of 1.32% [6]. Sector Exposure and Holdings - OUSA has a significant allocation in the Financials sector, comprising approximately 26.6% of the portfolio, followed by Information Technology and Healthcare [7]. - Microsoft Corp. (MSFT) is the largest holding at about 5.74%, with the top 10 holdings accounting for approximately 43.56% of total assets [8]. Performance Metrics - As of August 7, 2025, OUSA has gained about 3.13% year-to-date and 11.88% over the past year [10]. - The ETF has traded between $47.97 and $55.50 in the past 52 weeks, with a beta of 0.83 and a standard deviation of 13.53% over the trailing three-year period, indicating medium risk [10]. Alternatives - Other ETFs in the same space include Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), with SCHD having $69.59 billion in assets and an expense ratio of 0.06%, while VTV has $138.9 billion and an expense ratio of 0.04% [12].

Group 1: ETF Market Overview - The ETF market in China has shown significant growth in both scale and number, reaching a total market size of 42,236.60 billion yuan with 1,194 products as of July 15, 2025 [1][9][24] - Stock ETFs dominate the market, accounting for 72.45% of the total market size, with a scale of 30,602.16 billion yuan, while thematic ETFs lead in product quantity with 459 products [1][10][25] - The average management fee for ETFs is 0.28%, and the average custody fee is 0.07%, which are lower than those of open-end stock and bond funds [1][14][15] Group 2: Development Stages of the ETF Market - The development of the ETF market in China can be divided into three stages: initial development (2004-2008), continuous expansion (2009-2017), and rapid growth (2018-present) [2][22] - The market size surged from 18,423.26 billion yuan in 2023 to 35,613.43 billion yuan in 2024, marking a 93.31% increase, primarily driven by the central financial account's increased holdings in large-scale ETFs [2][27][31] Group 3: Comparison with International Markets - Compared to Japan and the United States, China's ETF market still has room for improvement, with Japan's central bank's long-term purchasing strategy serving as a potential model for China's central financial account [2][34][42] - The U.S. ETF market is the largest globally, with a total asset size of approximately 10.98 trillion USD and 3,913 products, showcasing a more mature market structure [42][44] Group 4: Innovation Directions in the ETF Market - The current innovation in China's ETF market includes the introduction of index-enhanced ETFs, margin trading ETFs, Hong Kong Stock Connect ETFs, and technology innovation bond ETFs [3][47][56] - Future innovation directions may focus on incorporating ESG risk considerations in index compilation, expanding underlying assets to multi-asset ETFs, and increasing the coverage of T+0 trading mechanisms [3][58][62]

Core Insights - The iShares MSCI USA Equal Weighted ETF (EUSA) is a smart beta ETF that debuted on May 5, 2010, providing broad exposure to the Style Box - All Cap Blend category of the market [1] - EUSA is managed by Blackrock and aims to match the performance of the MSCI USA Equal Weighted Index, which includes equity securities in the top 85% by market capitalization in the U.S. [5] Fund Characteristics - EUSA has accumulated over $1.52 billion in assets, making it one of the larger ETFs in its category [5] - The ETF has an annual operating expense ratio of 0.09%, positioning it as one of the least expensive options in the market [6] - EUSA offers a 12-month trailing dividend yield of 1.49% [6] Sector Exposure and Holdings - The ETF has the highest allocation in the Information Technology sector, accounting for approximately 16.2% of the portfolio, followed by Industrials and Financials [7] - The top 10 holdings of EUSA represent about 2.51% of its total assets, with individual holdings like Blk Csh Fnd Treasury Sl Agency (XTSLA) at 0.33% [8] Performance Metrics - As of August 6, 2025, EUSA has gained approximately 5.67% year-to-date and 16.96% over the past year [9] - The fund has traded between $82.93 and $102.26 in the last 52 weeks, with a beta of 1.01 and a standard deviation of 16.87% over the trailing three-year period, indicating medium risk [9] Alternatives - EUSA is a viable option for investors looking to outperform the Style Box - All Cap Blend segment, but there are other ETFs available for consideration [10] - Alternatives include iShares Core S&P Total U.S. Stock Market ETF (ITOT) and Vanguard Total Stock Market ETF (VTI), which have significantly larger asset bases and lower expense ratios of 0.03% [11]