Core Viewpoint - The article highlights the investment opportunities arising from the flu season, emphasizing both prevention and treatment strategies as key areas for potential growth in demand for related products [1][3]. Group 1: Flu Season Overview - The flu season in China is expected to peak earlier this year, with the flu activity showing an upward trend, currently at a medium epidemic level [4][5]. - The flu virus strain predominantly circulating this year is H3N2, which has led to lower pre-existing immunity in the population, resulting in a broader susceptible group and stronger transmission [8]. Group 2: Investment Opportunities in Prevention and Treatment - The rising flu cases are likely to increase public and market attention, driving demand for flu prevention and treatment products [9]. - Vaccines are recognized as the most effective and economical means of prevention, with the arrival of flu season directly catalyzing vaccine uptake [9]. - Two major vaccine ETFs are highlighted: Penghua Vaccine ETF (159657.SZ) with a fund size of 1.07 billion and a return of 5.63%, and another Vaccine ETF (562860.SH) with a fund size of 2.46 billion and a return of 17.53% this year [10]. Group 3: Traditional Chinese Medicine (TCM) ETFs - TCM products like Lianhua Qingwen and Jinhua Qinggan have proven effective in alleviating flu symptoms and shortening illness duration [14]. - Two TCM ETFs are mentioned: TCM ETF (159647.SZ) with a fund size of 13.81 billion and a return of 0.01%, and another TCM ETF (560080.SH) with a fund size of 26.78 billion and a return of -0.42% [15]. - The underperformance of TCM ETFs compared to vaccine ETFs is attributed to policy changes, market sentiment, and funding preferences [15]. Group 4: Future Outlook for TCM ETFs - The current flu outbreak is expected to significantly boost sales of related TCM products, potentially supporting company performance and serving as a catalyst for valuation recovery in the sector [16]. - For investors with a higher risk appetite looking for short-term opportunities, vaccine ETFs may be a more direct choice due to their stronger correlation with flu data [16]. - Conversely, for long-term investors seeking value, the currently low valuations of TCM ETFs may offer better safety margins [16].