Core Viewpoint - The market is experiencing significant fluctuations, with a notable increase in leveraged funds, particularly in small-cap stocks, which may drive further momentum in this segment [1][8]. Group 1: Market Dynamics - The net inflow of margin trading reached 39.3 billion, marking the highest level since 2025, indicating strong market interest [1]. - The ChiNext 1000 index has risen by 20.81% year-to-date, but has underperformed the 1000ETF Enhanced (159680) by 8.36%, which has increased by 29.17% [1]. - The current trading environment shows a shift towards active small-cap stocks, with retail investors and speculative funds driving the market [8]. Group 2: Investment Strategies - Investors are concerned about the volatility of small-cap stocks, leading to a preference for diversified tools like the 1000ETF Enhanced, which mitigates risks while enhancing returns through quantitative strategies [6][9]. - The consensus is shifting towards small-cap stocks, particularly those in high-growth sectors such as manufacturing, hard technology, and pharmaceuticals, which are believed to have better innovation capabilities and earnings elasticity compared to large-cap stocks [9]. - For those looking to invest in small-caps but lacking stock-picking skills, a systematic investment approach through the 1000ETF Enhanced is recommended, especially during market pullbacks [9].

Core Insights - The current sentiment towards the CSI 2000 index is mixed, with some investors believing it is on the verge of a bull market while others are hesitant due to recent price increases [2][4] - The CSI 2000 index has risen over 63.5% since September 24, 2024, becoming a key driver of the current market rally, supported by monetary easing and policies favoring small and specialized enterprises [4][5] Group 1: Market Performance - The CSI 2000 index has seen significant gains, with the first ETF tracking it, the CSI 2000 Enhanced ETF (159552), achieving over 40% returns this year and approximately 19% excess returns relative to the index [2] - The trading volume of the CSI 2000 index has increased, with its market turnover share rising from under 10% in 2021 to nearly 30% [5] Group 2: Investment Strategies - Investors waiting for a market correction may miss opportunities, as past experiences suggest that waiting for a significant drop often leads to missed buying opportunities and subsequent losses [4] - A contrasting strategy involves using quantitative approaches to capture immediate market signals, which has resulted in a 20% excess return for those already invested in the CSI 2000 Enhanced ETF [4] Group 3: Risk Considerations - Fund managers have warned about the accumulation of risks in small-cap stocks, suggesting a cautious approach to investment, such as dollar-cost averaging and maintaining a balanced portfolio [8]