Market Overview - In February 2026, the domestic stock market indices showed mixed performance, with the CSI 1000 index rising significantly by 3.71%, while the STAR 50 index fell by 1.42%. Year-to-date, the CSI 500 index performed strongly with a gain of 15.98%, whereas the CSI 300 index lagged with a rise of only 1.74% [2][6]. - In terms of market style, small-cap stocks outperformed large-cap stocks in February, and value stocks slightly outperformed growth stocks. Year-to-date, the ChiNext index rose by 3.34%, while the CSI 1000 index increased by 12.71% [2][7]. - The best-performing sectors in February were steel (+9.52%), building materials (+7.72%), and machinery (+7.56%), while the worst performers were media (-4.22%), non-bank financials (-3.48%), and consumer services (-3.37%) [2][12]. - The bond market saw the China Bond Treasury Total Wealth Index increase by 0.26% and the China Bond Corporate Bond Total Wealth Index rise by 0.23% in February. Year-to-date, government bonds performed slightly better than credit bonds [2][7]. - In the commodity market, most domestic commodity indices fell in February, with the Nanhua Agricultural Products Index rising by 0.23% and the Nanhua Gold Index declining by 1.17%. Year-to-date, the Nanhua Gold Index increased by 17.11% [2][7]. ETF Strategy Performance - The report highlights the growing importance of ETFs as investment tools, with a focus on various strategies including style rotation, quantitative selection, global allocation, bond allocation, and asset allocation. The current ETF combinations include style rotation, global allocation, valuation-selected ETFs, and others [3][13]. - As of February 28, 2026, the Style Rotation Portfolio achieved a cumulative return of 104.86%, outperforming its benchmark by 53.29%. The annualized volatility was 19.24%, with a maximum drawdown of -22.20% [3][19]. - The 28 Rotation Portfolio recorded a cumulative return of 66.89%, exceeding its benchmark by 17.31%, with an annualized volatility of 11.26% and a maximum drawdown of -16.39% [3][26]. - The Valuation-Selected ETF Portfolio achieved a cumulative return of 190.69%, outperforming its benchmark by 141.54%, with an annualized volatility of 20.37% and a maximum drawdown of -21.42% [3][33]. - The Global Allocation Portfolio had a cumulative return of 73.57%, surpassing its benchmark by 35.07%, with an annualized volatility of 13.56% and a maximum drawdown of -28.69% [3][41]. - The Dynamic Duration Strategy Portfolio achieved a cumulative return of 20.44%, outperforming its benchmark by 3.32%, with an annualized volatility of 1.71% and a maximum drawdown of -2.38% [3][49]. - The Asset Rotation Strategy Portfolio recorded a cumulative return of 78.61%, exceeding its benchmark by 54.43%, with an annualized volatility of 10.73% and a maximum drawdown of -12.17% [3][56]. - The Asset Rotation Strategy 2.0 Portfolio achieved a cumulative return of 75.02%, outperforming its benchmark by 50.83%, with an annualized volatility of 7.44% and a maximum drawdown of -7.95% [3][64].