Group 1 - The core viewpoint is that the defense ETF (512670) has reached a new high, closing at 0.802 yuan, with a year-to-date increase of 1.01% as of July 18, 2025 [1] - The latest scale of the defense ETF has reached 6.71 billion yuan, marking a historical high, driven by multiple favorable catalysts in the military industry [2] - The military sector has shown strong performance this year, with significant events such as a $1 billion order for 350 E20 aircraft from an Emirati buyer and the public debut of the new "Rainbow T1" drone by a Chinese military team [2] Group 2 - The military industry is identified as a resonant direction in the current market, with a focus on the ammunition supply chain and the cyclical logic of order replenishment during the 14th Five-Year Plan [2] - The second half of the year will emphasize "new quality" segments, including new aircraft, new materials, AI integration, data links, and unmanned systems, indicating a shift towards thematic concepts [2] - The defense ETF closely tracks the CSI Defense Index, which includes listed companies under the top ten military groups and those providing weaponry and equipment to the armed forces [2] Group 3 - As of June 30, 2025, the top ten weighted stocks in the CSI Defense Index (399973) include AVIC Shenyang Aircraft (600760), AVIC Engine (600893), and others, with these stocks accounting for 43.29% of the index [3]