Core Viewpoint - The cash flow index funds have experienced a significant surge in establishment, with 41 new funds launched in July alone, bringing the total to 73 funds tracking 6 different indices, indicating a growing interest in cash flow-based investment strategies [1][2][3]. Fund Establishment and Growth - As of August 7, 2023, the cash flow index funds have seen a peak in establishment, with 32 funds launched in July, surpassing previous totals [2][3]. - The first cash flow index fund was established in February 2023, with a smaller peak in April, followed by a decline in May and June, before the surge in July [2]. - The newly established funds include various indices such as the CSI 500 Free Cash Flow Index, reflecting a diversification in the types of cash flow indices available [3][5]. Fund Performance and Scale - Among the 73 cash flow index funds, 12 have raised over 1 billion yuan, with notable funds like the Huaxia CSI National Free Cash Flow ETF raising 3.915 billion yuan, showing strong investor interest [3][4]. - The average return of cash flow index funds that have been operational for over three months is approximately 4.07%, with some funds achieving returns exceeding 10% [7][8]. Market Dynamics and Investment Strategy - The cash flow index strategy focuses on companies with strong cash flow generation capabilities, which is essential for sustainable dividends and financial health [5]. - The market for cash flow index funds is still developing, with over 35 fund companies participating, indicating potential for further growth in both the number of products and total assets under management [5][6]. - Current fund inflows have not significantly impacted the underlying stock prices, suggesting that there is still room for investment in these assets without causing market distortions [9].