Core Viewpoint - The article discusses the performance of the non-ferrous metals sector in the A-share market since 2025, highlighting its strong performance and questioning whether it is still a good time to invest, given the changes in the underlying logic of price increases [4]. Group 1: Changes in Upward Logic - The current rally in non-ferrous metals is driven by improvements in supply and demand structures rather than mere speculative sentiment. The ongoing global electrification process is boosting demand for industrial metals like copper and aluminum, while supply remains constrained due to insufficient capital expenditure and stricter environmental regulations [6]. - Initially, the price increases were primarily driven by "profit recovery," but the market is now beginning to reflect future profit expectations, leading to a shift towards "trend-driven" investment. This transition is expected to increase volatility in the market [7][8]. Group 2: Current Valuation Position - Non-ferrous metals are currently not considered cheap, with the industry PE (TTM) at approximately 60% of the historical range, while the PB ratio is nearing 100%, indicating a historically high valuation. This suggests that the market's pricing of assets is becoming aggressive, and caution is advised regarding the "low PE" appearance [10]. - The performance of various indices shows that the non-ferrous metals sector has seen a significant increase of 137.46% since 2025, with a near 100% PB ratio, indicating a high valuation level compared to historical data [11]. Group 3: ETF Fund Flows - Over the past year, the scale of non-ferrous metal-themed ETFs has expanded significantly, with notable net inflows and high trading activity, indicating continued participation from trend-driven funds. However, the rapid expansion of ETF sizes may lead to increased concentration of holdings, which could amplify volatility during market corrections [15]. - The article lists the top ten ETFs by net inflow, with significant contributions from funds focused on non-ferrous metals, indicating strong interest in this sector [16]. Group 4: Investment Strategies - For trend traders, as long as the driving factors and supply-demand dynamics remain unchanged, there may still be opportunities for continued gains, although the current high volatility requires careful position management [17]. - Mid-term investors should be cautious due to high valuations and crowded positions, suggesting a phased approach to investment rather than a lump-sum entry [18]. - Long-term strategic investors may still find value in the non-ferrous metals sector due to ongoing global resource constraints and energy transition trends, recommending dollar-cost averaging or contrarian strategies to smooth out volatility [19]. Group 5: Recommended Funds - The article suggests several public funds for consideration, including: 1. Southern CSI Non-Ferrous Metals ETF Link A (004432), tracking the CSI Non-Ferrous Metals Index [20]. 2. Huaxia CSI Non-Ferrous Metals Industry Theme ETF Link A (016707), focusing on larger, liquid stocks in the non-ferrous metals and mining sectors [20]. 3. Qianhai Kaiyuan Hong Kong-Shenzhen Core Resource Flexible Allocation Mixed A (003304), which emphasizes gold and small metal-related stocks [21].