Core Insights - The article highlights the significant inflow of funds into the CSI 2000 Enhanced ETF, which has seen a remarkable increase of over 110% in the past year, indicating strong investor interest in small-cap stocks [1][3][5]. Fund Performance - The CSI 2000 Enhanced ETF (159552) has achieved a one-year growth rate of 112%, with a year-to-date increase of over 54%, outperforming the CSI 2000 index, which has only risen by 33% this year, resulting in an excess return of 21% [4][5][6]. - The fund has maintained a strong inflow trend, with nearly 500 million CNY attracted in a single session and a total of 4.9 billion CNY over the last ten trading days [3][4]. Investment Strategy - The enhanced ETF strategy allows for greater stock selection flexibility and the potential to capture undervalued stocks, leveraging quantitative strategies to achieve higher alpha [5][6]. - Investing in small-cap enhanced ETFs provides diversification benefits, reducing individual stock risk by holding a basket of stocks rather than concentrating on single stocks [6][7]. Market Context - The current market environment, characterized by high liquidity and supportive policies for technology innovation, is conducive for small-cap stocks to outperform larger indices [7]. - The article suggests a core-satellite investment strategy, where broad market ETFs serve as core holdings while small-cap enhanced ETFs are used to seek higher returns [7].