Core Viewpoint - Recent US-China trade tensions and China's export controls on rare earths have reignited market interest in the non-ferrous metals sector, particularly in mining ETFs, which have significantly outperformed traditional non-ferrous metal ETFs this year [1][3]. Performance Summary - The year-to-date performance of various indices shows that the CSI Non-ferrous Metal Mining Theme Index has increased by 84.54%, surpassing other indices including the CSI Rare Earth Industry Index at 84.24% and the CSI Industrial Non-ferrous Metal Theme Index at 76.07% [2]. Market Dynamics - The non-ferrous sector's fundamentals present long-term investment value, with mining ETFs focusing on companies with substantial non-ferrous metal resource reserves, demonstrating stronger price elasticity in the current macroeconomic environment [3]. - Recent developments, including detailed export controls on rare earths and renewed US tariffs, alongside the Federal Reserve's interest rate cuts, have collectively strengthened the mining sector [5]. Sector Composition - The mining ETF (561330) has a significant focus on gold, copper, and rare earths, with these three categories accounting for 56% of its total composition [4]. - The top ten holdings in the mining ETF are all leading resource companies, collectively representing over 57% of the ETF, indicating a high concentration of resource-rich firms [4]. Supply Chain Influences - Recent accidents at major copper mines, such as Escondida and Grasberg, have disrupted supply, with expectations of a 35% decrease in copper production by 2026 compared to previous forecasts [6]. - The overall outlook for the non-ferrous metal industry remains positive, driven by supply disruptions and favorable macroeconomic conditions, including the potential for rising gold prices due to geopolitical tensions and monetary policy changes [6].