Core Insights - The recent volatility in the A-share market has led to a focus on style rebalancing, with several well-known balanced fund managers preparing their holdings in advance for the third quarter [1] - Fund managers have indicated that the recent rotation expectations in the market are increasing, with the strength of cyclical sectors reflecting a balance between performance and valuation considerations, making the "barbell strategy" a core approach to balance risk and return [1] What is the "Barbell Strategy" - The "barbell strategy" is a diversified multi-asset allocation approach that incorporates both low-risk and high-risk assets to balance the portfolio's risk and return [2] - This strategy can be visualized as a dumbbell, where one end represents low-risk stable assets and the other end represents high-risk high-return assets, creating a "heavy on both ends, light in the middle" structure [2] Investment Structure and Market Adaptability - This investment structure sacrifices potential returns from mid-risk assets in exchange for resilience in extreme market conditions, allowing investors to respond to black swan events and seek returns in stable markets [3] - Investors should avoid mid-risk assets that lack highlights, such as traditional consumer electronics and homogeneous manufacturing industries [7] Practical Implementation of the Barbell Strategy - In practical terms, investors should select conservative assets on the left end of the barbell, such as high-dividend, low-volatility stocks from sectors like utilities and energy [5] - On the right end, the focus should be on high-growth, high-volatility assets, such as innovative technology and new energy sectors [6] - Historical data shows that the CSI Bank Index and the STAR 50 Index can form a basic barbell strategy, as they exhibit a negative correlation [8][10] Dynamic Weight Adjustment - The barbell strategy does not require equal weight on both ends but should be adjusted based on market conditions and individual risk preferences [10] - In optimistic markets, the aggressive end can be increased to 70%, while in pessimistic markets, the defensive end can be raised to 60% [10] ETF Configuration for the Barbell Strategy - The ETF market offers a variety of options across sectors, broad indices, bonds, and overseas investments, with a simple approach being the combination of stock ETFs and bond ETFs to achieve balance [11] - Recent high-performing ETFs include those focused on technology themes, which have shown returns exceeding 80% in the past year [11] - Defensive tools such as dividend ETFs and bond ETFs can provide stable returns and are essential for liquidity management [11]

Core Insights - In September 2023, 634 out of 680 comparable QDII funds saw an increase in net value, representing a 93.24% success rate, while 46 funds experienced a decline [1] Group 1: Fund Performance - Eleven QDII funds recorded a rise of over 16% in September, with E Fund's China Concept Internet 50 ETF leading at a 17.42% return [2] - The E Fund's China Concept Internet 50 ETF, established on January 4, 2017, achieved a year-to-date return of 50.54% and a cumulative return of 74.38%, with a net value of 1.7438 yuan as of September 30, 2025 [2] - The top ten holdings of the E Fund's China Concept Internet 50 ETF include major companies like Tencent, Alibaba, and Meituan [2] Group 2: Other Notable Funds - The Huaxia Hang Seng Internet Technology ETF recorded a 17.01% increase in September, with a total fund size of 35.531 billion yuan as of the end of Q2 2025 [3] - The Huatai-PineBridge China-Korea Semiconductor ETF, established on November 2, 2022, reported a year-to-date return of 67.94% and a cumulative return of 140.39%, with a net value of 2.4039 yuan [4] - The top ten holdings of the Huatai-PineBridge China-Korea Semiconductor ETF include SK Hynix and Samsung Electronics [5] Group 3: Underperforming Funds - Funds tracking the S&P 500 Healthcare Equal Weight Index and the Hang Seng Consumer Index performed poorly in September, contributing to the decline of some QDII funds [5]