Report Title - Analysis of the Second Quarter Report of Industry-themed Funds in 2025 [1] Report Industry Investment Rating - Not Available Core Viewpoints of the Report - In the second quarter of 2025, most major industry-themed funds saw an increase in the number and scale. The total scale of technology and communication, and national defense and military industry funds rose significantly, while that of new energy (vehicles) and consumer industry funds shrank [3]. - Except for new energy (vehicles) and midstream manufacturing, other major industry-themed track funds recorded average positive returns. National defense and military industry funds had a relatively high increase, with an average increase of about 12.54% [3]. - In most tracks, active funds outperformed passive funds in terms of excess returns. However, in new energy (vehicles) and large manufacturing tracks, active funds underperformed passive funds [3]. - The trading activity of most major track ETFs decreased, except for the medical and biological, and national defense and military industry tracks, where the average daily trading volume increased by over 60% [3]. - The net capital flow status of major industry-themed track funds varied. The technology and communication track had a relatively large net capital inflow, while the new energy (vehicles) track had a relatively large net capital outflow [3]. Summary by Directory Quantity & Scale Changes - Most major industry-themed funds saw an increase in quantity and scale compared to the end of the previous quarter. The technology and communication industry had the largest increase in total fund scale, up about 7.8% or 26.61 billion yuan, and the national defense and military industry also had a significant increase, up 35.7% or 24.99 billion yuan. In contrast, the total scale of new energy (vehicles) and consumer industry funds shrank by over 900 million yuan each [3][11]. - In the second quarter of 2025, the pharmaceutical and biological industry had the most new funds in the industry fund category, with 7 new funds, and the large manufacturing and large technology theme funds had the most new funds in the theme fund category, with 6 new funds each [3]. - The new funds in the pharmaceutical and biological industry and large manufacturing theme were mostly passive management funds. The average fundraising scale of new industry funds in the second quarter was about 2.2 billion yuan, slightly lower than the previous quarter [16]. - A total of 15 major industry-themed funds expired in the second quarter of 2025, with 4 each in the large manufacturing and new energy (vehicles) theme tracks [25]. Performance - In the second quarter of 2025, the A-share market was volatile, and most major industry-themed track funds, except for new energy (vehicles) and midstream manufacturing, recorded average positive returns. National defense and military industry funds had a relatively high increase, with an average increase of about 12.54%, while midstream manufacturing and new energy (vehicles) industry funds declined, with average declines of 3.52% and 0.90% respectively [27]. - Active funds outperformed passive funds in terms of excess returns in most tracks. The active funds in the pharmaceutical and biological industry had an excess return of about 7.3% [29]. - In the consumer industry, the quarterly average return of consumer industry funds was about 1.56%. Active funds performed better, with an average return of about 3.0% [33][37]. - The pharmaceutical and biological industry continued its upward trend, with an average quarterly return of 9.61%. Active funds had stronger performance elasticity, with an average return of about 12.6% [42][44]. - In the technology and communication industry, the average quarterly return of technology and communication industry funds was about 1.51%. Active funds had little advantage, with an average return of about 1.54% [48][50]. - The midstream manufacturing industry showed significant internal differentiation, with an average quarterly return of about -3.52%. Passive funds had an average return of about -3.5% [55][57]. - The national defense and military industry had excellent performance, with an average quarterly return of about 12.54%. Active funds performed better, with an average return of about 13.3% [62][64]. - In the cyclical industry, the performance differentiation of sub - industries converged. The average quarterly return of cyclical industry funds was about 3.21%. Active funds performed better, with an average return of about 4.1% [71][74]. - The financial and real estate industry showed significant internal differences. The average quarterly return of financial and real estate funds was about 7.68%. Active funds had a larger increase, with an average return of about 10.3% [79][80]. - The new energy (vehicles) theme funds performed poorly, with a decline compared to the previous quarter. Active funds had an average return of about -1.1% [83]. - The large technology theme funds' performance declined. Active funds had an average return of about 3.0% [84]. - The large manufacturing theme funds' performance declined. Passive funds had an average return of about 2.6% [91]. - The ESG theme active funds performed well, with an average return of about 2.7%. Passive funds' performance recovered, with an average return of about 2.0% [95] Trading Situation & Capital Changes - In the second quarter of 2025, the total average daily trading volume of technology and communication ETFs remained at the highest level, and the trading was relatively active [96]. - The net capital flow status of major industry-themed track funds varied. The technology and communication track had a relatively large net capital inflow of 20.551 billion yuan, while the new energy (vehicles) track had a relatively large net capital outflow of -8.335 billion yuan [100]. - Except for the medical and biological, national defense and military industry, and large manufacturing tracks, the average daily trading volume of other major track ETFs decreased, and the trading activity declined overall. The average daily trading volume of medical and biological, and national defense and military industry track ETFs increased by over 60% [102]. - In terms of trading, sub - theme ETFs such as Hong Kong brokerage, Hong Kong Internet, semiconductor chips, and Hong Kong innovative drugs were relatively more active [106]. - In terms of capital flow, sub - theme products such as Hong Kong large technology, Hong Kong innovative drugs, semiconductors, and national defense and military industry had relatively large net capital inflows, while sub - themes such as large medicine, brokerage, biomedicine, large consumption, and new energy had relatively large net capital outflows [109] Position Changes - Compared with the end of the previous quarter, active funds in each industry-themed track made the following major changes to their top ten heavy - position stocks: significant increases in holdings of certain stocks and significant decreases in holdings of others in different industries such as consumer, pharmaceutical and biological, technology and communication, etc [114]