Core Viewpoint - The A-share market experienced fluctuations on November 7, with the 500 Cash Flow Index rising approximately 0.5%, led by stocks such as Yuntianhua, Wangfujing, and Lizu Group [1] Group 1: Market Performance - The 500 Cash Flow Index is the only index that the Cash Flow 500 ETF (560120) tracks, which has seen three consecutive days of gains [1] - Longcheng Securities predicts that the CSI 300 Index will continue to fluctuate in November, with a potential change within 1%, while cautioning about the volatility risks of high-position stocks and technical pressure levels [1] Group 2: Investment Focus - In the current market context, sectors such as military industry, storage chips, and free cash flow are expected to attract investor attention [1] - The Cash Flow 500 ETF (560120) closely tracks the CSI 500 Free Cash Flow Index, selecting 50 stocks with positive and high free cash flow after liquidity, industry, and ROE stability screening [1] Group 3: Fund Characteristics - The selected stocks generally exhibit characteristics of small to mid-cap market value, lower valuations, and higher ROE [1] - The fund manager can evaluate and distribute earnings quarterly, with distributions arranged when conditions for fund dividends are met [1]

Core Insights - The CSI 500 Free Cash Flow Index has increased by 0.47% as of October 17, 2025, with leading stocks including Silver Nonferrous, Juneyao Airlines, Shenhuo Co., Tianshan Aluminum, and Hailan Home [1] - The CSI 500 Free Cash Flow ETF (560120) rose by 1.31%, with the latest price at 1.16 yuan [1] - The CSI 500 Free Cash Flow ETF has recorded a maximum monthly return of 7.97% since its inception, with the longest consecutive monthly increase being 2 months and a total increase of 12.37% [1] Performance Metrics - The CSI 500 Free Cash Flow ETF has an average monthly return of 6.02% and a 100% probability of profit in the months it has increased [1] - The CSI 500 Free Cash Flow Index consists of 50 listed companies with high free cash flow rates selected from the CSI 500 Index, reflecting the overall performance of companies with strong cash flow generation capabilities [1] Top Holdings - As of September 30, 2025, the top ten weighted stocks in the CSI 500 Free Cash Flow Index are CIMC Group, Zhejiang Longsheng, Juneyao Airlines, Yuntianhua, Silver Nonferrous, Shougang Co., Shenhuo Co., Hisense Home Appliances, Yongtai Energy, and Tianshan Aluminum, collectively accounting for 44.66% of the index [1]

Core Insights - The CSI 500 Free Cash Flow Index has decreased by 0.25% as of September 15, 2025, with mixed performance among constituent stocks [1] - The Cash Flow 500 ETF (560120) has dropped by 0.18%, currently priced at 1.11 yuan [1] - The market sentiment remains positive, supported by strong policies, industrial catalysts, easing overseas monetary policies, and new capital inflows, indicating a clear long-term trend for A-shares [1] Index Performance - The CSI 500 Free Cash Flow Index selects 50 listed companies with high free cash flow rates from the CSI 500 Index to reflect the overall performance of companies with strong cash flow generation capabilities [1] - As of August 29, 2025, the top ten weighted stocks in the CSI 500 Free Cash Flow Index accounted for 44.96% of the index [1] Top Weighted Stocks - The top ten stocks by weight in the index include: - China International Marine Containers (CIMC) - weight: 2.58%, change: -0.87% [2] - Zhejiang Longsheng - weight: 2.33%, change: 0.00% [2] - Yuntianhua - weight: 1.93%, change: -0.81% [2] - Shougang Group - weight: 1.63%, change: -2.67% [2] - Xijie Airlines - weight: 1.42%, change: 0.46% [2] - Western Mining - weight: 1.38%, change: -0.49% [2] - Shenhuo Group - weight: 1.37%, change: -0.50% [2] - Baiyin Nonferrous Metals - weight: 1.19%, change: -0.50% [2] - Yongtai Energy - weight: 1.18%, change: 2.68% [2] - Compass - weight: 1.08%, change: 2.10% [2]