Group 1 - The upcoming military parade will feature multiple "firsts," with a significant proportion of new domestic military equipment being showcased for the first time [1] - The air force formation will include all current main battle aircraft types, highlighting several key equipment that have garnered public attention [1] - As of August 20, 2025, the CSI Defense Index (399973) shows mixed performance among its constituent stocks, with Steel Research High-tech (300034) leading with a 3.06% increase [1] Group 2 - Historical analysis since the 18th National Congress in 2012 indicates that "parade market trends" typically begin 1-2 months prior to the event, with military industry indices rising in the two months leading up to previous parades [1] - The strength of the military "parade market" is influenced by overall market conditions, risk appetite, and the scale of the parade, with the 2015 "Nine-Three Parade" yielding an 84% excess return due to its large scale and strong market rebound [1] - The military sector may face short-term adjustment pressure post-parade, but long-term trends will be driven by the fundamentals of the military industry [1] Group 3 - The Defense ETF closely tracks the CSI Defense Index, which includes listed companies under the ten major military groups and those providing equipment to the armed forces [2] - As of July 31, 2025, the top ten weighted stocks in the CSI Defense Index account for 43.88% of the index, with notable companies including AVIC Shenyang Aircraft (600760) and AVIC Engine (600893) [2] - The Defense ETF has the lowest management and custody fees among its peers at 0.40%, making it the only one in its category [2]

Strategy Overview - Hengtai Securities has developed an ETF strategy based on industry rotation and thematic investments, referencing previous reports from October 2024[2] - The strategy includes a combination of industry and thematic ETFs to optimize investment performance[2] ETF Holdings and Performance - The total value of the ETFs held is approximately 144.96 billion CNY, with significant allocations in sectors such as communication equipment (73.61%) and gaming (81.29%)[3] - The strategy achieved a cumulative net return of about 2.04% from August 11 to August 15, 2025, underperforming the CSI 300 ETF by 0.64%[3] - Since October 14, 2024, the strategy's cumulative return is approximately 9.26%, with an underperformance of 1.20% relative to the CSI 300 ETF[3] Weekly Recommendations - For the week of August 18 to August 22, 2025, the recommended sectors include communication equipment, precious metals, and gaming[12] - New positions will be added in communication equipment ETF, industrial metals ETF, and innovative pharmaceuticals ETF, while continuing to hold positions in gold stocks, gaming ETF, and satellite ETF[12] Risk Considerations - There is a risk of rapid style shifts within a week, which could impact ETF performance[7] - Some ETFs may experience abnormal increases in discount rates, posing additional risks to investors[7]

Group 1 - The core viewpoint indicates a strong performance in the defense sector, with the China Defense Index (399973) rising by 1.66% and notable increases in individual stocks such as China Haifang (600764) and Xiangdian Co. (600416), both up by 7.10% [1] - The global underwater unmanned vehicle (UUV) market reached a size of $1.96 billion in 2020, with a projected compound annual growth rate (CAGR) of 15.8% from 2021 to 2028, expected to reach $6.22 billion by 2028 [1] - The autonomous underwater vehicle (AUV) segment is anticipated to grow at a CAGR of 16.4%, outpacing the overall market growth [1] Group 2 - The military industry is approaching a critical turning point, with expectations that the current bull market will not conclude without a military sector rally [2] - Two transformative changes are anticipated in China's military industry by 2025: the disruption of traditional military growth ceilings through military trade and the emergence of new market demands driven by new types of combat capabilities, such as military applications of AI and robotics [2] - The Defense ETF closely tracks the China Defense Index, which includes listed companies under the ten major military groups and those providing weaponry to the armed forces, reflecting the overall performance of defense industry stocks [2] Group 3 - As of July 31, 2025, the top ten weighted stocks in the China Defense Index (399973) accounted for 43.88% of the index, with companies like AVIC Shenyang Aircraft (600760) and AVIC Engine (600893) among the leaders [3]

国防ETF紧密跟踪中证国防指数，中证国防指数选取隶属于十大军工集团公司旗下的上市公司证券，以 及为国家武装力量提供武器装备，或与军方有实际装备承制销售金额或签订合同的相关上市公司证券作 为指数样本，以反映国防产业上市公司证券的整体表现。目前跟踪国防军工类的13只ETF中（名字带航 天、国防、军工的ETF），国防ETF的管理费+托管费仅0.40%，是同类最低且唯一。 数据显示，截至2025年7月31日，中证国防指数(399973)前十大权重股分别为中航沈飞(600760)、航发动 力(600893)、中航光电(002179)、中航西飞(000768)、菲利华(300395)、中航机载(600372)、航天电子 (600879)、海格通信(002465)、中航成飞(302132)、西部超导(688122)，前十大权重股合计占比43.88%。 截至2025年8月13日 10:17，中证国防指数(399973)上涨0.81%，成分股内蒙一机(600967)上涨7.66%，中 兵红箭(000519)上涨6.91%，菲利华(300395)上涨5.57%，北方导航(600435)上涨2.72%，江航装备 (688586)上 ...

ETF Industry News - The three major indices experienced fluctuations and declines, with the Shanghai Composite Index down by 0.37%, the Shenzhen Component Index down by 0.17%, and the ChiNext Index down by 0.24%. However, several Traditional Chinese Medicine (TCM) sector ETFs saw gains, including the TCM 50 ETF (562390.SH) up by 2.36%, the TCM ETF (560080.SH) up by 1.89%, and the Huatai-PB TCM ETF (561510.SH) up by 1.75% [1] - The defense and military industry ETFs saw declines, with the Aerospace ETF (159227.SZ) down by 2.31%, the Defense ETF (512670.SH) down by 1.94%, and the Aerospace and Aviation ETF (159208.SZ) down by 1.85% [1] - According to a report from CITIC Securities, TCM companies have been increasing their R&D investments in recent years, and stable cash flow will support future R&D expenditures. The innovation in TCM is expected to contribute to steady growth, while innovative chemical and biological drugs may provide additional valuation flexibility [1] New ETF Launches - A batch of new ETFs is set to be launched, with six ETFs announcing their trading listings on July 29, followed by three more on July 30. The ETF market is expected to expand significantly, with over 10 ETFs currently in the issuance process [2] - The new ETFs cover a range of indices, including the CSI 500, ChiNext 50, and various thematic indices related to artificial intelligence and technology sectors [2] - Personal investors are increasingly prominent among the top holders of newly issued ETFs, with individual investors holding 93.57% of the shares in the Yifangda National General Aviation Industry ETF as of July 28. This trend indicates a high level of activity and consensus among personal investors, nearing the peak levels seen since the fourth quarter of last year [2][3] Market Performance Overview - On August 1, the three major indices collectively declined, with the Shanghai Composite Index closing at 3559.95 points, the Shenzhen Component Index at 10991.32 points, and the ChiNext Index at 2322.63 points. The highest intraday points were 3581.75, 11068.31, and 2348.02, respectively [4] - In terms of sector performance, the Environmental Protection, Media, and Light Industry sectors ranked highest with daily gains of 0.88%, 0.82%, and 0.65%, while the Oil and Petrochemical, Defense and Military, and Steel sectors ranked lowest with declines of 1.79%, 1.47%, and 1.26% [6] ETF Market Performance - The bond ETFs performed the best today, with an average daily change of 0.01%, while cross-border ETFs had the worst performance with an average daily change of -0.69% [9] - The top-performing ETFs today included the Photovoltaic ETF Leader (560980.SH) with a gain of 2.53%, the TCM 50 ETF (562390.SH) with a gain of 2.36%, and the Photovoltaic 50 ETF (159864.SZ) with a gain of 1.94% [11][12] - The trading volume for the top three stock ETFs was led by the A500 ETF Fund (512050.SH) with a trading volume of 4.183 billion, followed closely by the A500 ETF Southern (159352.SZ) with 4.166 billion, and the Sci-Tech 50 ETF (588000.SH) with 4.070 billion [14][15]

Group 1 - The core viewpoint of the articles highlights the strong performance of the military industry sector in the capital market, particularly around the "August 1" Army Day, which marks the 98th anniversary of the People's Liberation Army [1] - Historical data shows that the military industry sector tends to outperform the broader market in August, with a 60% probability of rising and an average increase of nearly 1% over the past 15 years [1] - After the Army Day, the military index has a 66.67% probability of rising in the following five trading days, indicating a significant "post-holiday effect" [1] Group 2 - As of Q2 2025, public fund holdings in the military sector increased significantly, reaching 112.296 billion yuan, a 23.14% quarter-on-quarter rise, placing it among the top ten industries in the Shenwan classification [3] - The military-themed ETFs have seen substantial growth, with total assets rising from 29.733 billion yuan at the beginning of the year to 53.392 billion yuan, an increase of over 78% [5] - Notable ETFs include the Guotai CSI Military ETF and the Fortune CSI Military Leader ETF, which have seen significant growth in shares, 51% and 108% respectively [5] Group 3 - Long-term performance analysis shows that the Huabao CSI Military ETF and the E Fund CSI Military ETF have delivered total returns of 2.88% and 2.45% respectively over three years, indicating strong stability compared to peers [6] - The E Fund National Aviation Industry ETF has achieved a remarkable return of 21.59% year-to-date, making it the only military industry ETF to exceed 20% returns this year [5] - The military sector is expected to benefit from a recovering economy and increased military trade, which could become a second growth driver for the industry [7]

Group 1 - The core viewpoint is that the defense sector is experiencing increased activity due to the upcoming August 1 Army Day and expectations surrounding the September 3 military parade, leading to a rise in the China Defense Index and related stocks [1] - The China Defense Index (399973) has shown a 0.16% increase, with notable gains from stocks such as Sichuan Jiuzhou (up 4.58%) and Beifang Navigation (up 4.56%) [1] - The military industry is expected to enter a new growth phase in the second half of 2025, driven by the release of delayed orders and the initiation of the 14th Five-Year Plan [1] Group 2 - The China Defense ETF closely tracks the China Defense Index and has the lowest management and custody fees among its peers at 0.40% [2] - As of June 30, 2025, the top ten weighted stocks in the China Defense Index account for 43.29% of the index, with significant companies including AVIC Shenyang Aircraft (600760) and AVIC Engine (600893) [2] - The index includes companies that provide weaponry and equipment to the armed forces, reflecting the overall performance of the defense industry [2]

Group 1 - The China Defense Index (399973) has seen a strong increase of 1.16% as of July 24, 2025, with notable gains from stocks such as Philihua (300395) up 11.50%, Yingliu Co. (603308) up 3.73%, and Hongdu Aviation (600316) up 3.60% [1] - A total of 61 companies have released their half-year performance forecasts as of July 18, 2025, with 33 companies expecting profit increases and 28 expecting profit decreases, indicating a recovery in the military industry sector [1] - The military intelligence sector is becoming a key focus for major countries, with emerging equipment such as intelligent and unmanned systems expected to drive a wave of demand and transformation in the military industry [1] Group 2 - The Defense ETF closely tracks the China Defense Index and includes companies under the top ten military groups and those providing equipment to the armed forces, reflecting the overall performance of defense industry stocks [2] - As of June 30, 2025, the top ten weighted stocks in the China Defense Index account for 43.29% of the index, with significant companies including AVIC Shenyang Aircraft (600760) and AVIC Engine (600893) [2] - The management and custody fees for the Defense ETF are the lowest in its category at 0.40%, making it the only ETF with such a low fee structure among 13 similar ETFs [2]

Group 1 - The China Defense Index (399973) has increased by 0.77%, with notable gains from stocks such as Steel Research High-tech (300034) up 7.49% and China North Industries Group (000519) up 4.88% [1] - The Defense ETF (512670) has risen by 0.62%, marking its fourth consecutive increase, with the latest price at 0.82 yuan [1] - Upcoming military trade equipment exhibitions in Inner Mongolia and Shenyang are expected to attract major clients, providing positive catalysts for the defense sector [1] Group 2 - The China Defense Index tracks listed companies under the top ten military industrial groups and those providing weaponry and equipment to the armed forces, reflecting the overall performance of defense industry stocks [2] - As of June 30, 2025, the top ten weighted stocks in the China Defense Index account for 43.29% of the index, including companies like AVIC Shenyang Aircraft (600760) and AVIC Engine (600893) [2] - The Defense ETF has the lowest management and custody fees among its peers at 0.40%, making it the only one in its category [2]

Group 1 - The core viewpoint indicates that the defense industry is experiencing a bullish trend, with the China Securities Defense Index rising by 0.80% and several constituent stocks showing significant gains, such as Steel Research High-Tech up by 7.25% [1] - As of July 20, 2025, among 120 tracked defense industry listed companies, 37 have disclosed their H1 2025 performance forecasts, with 14 companies expecting positive year-on-year growth [1] - The defense industry is anticipated to reach a turning point in orders as the "Centenary Goal of Military Building" enters its second half, driven by new technologies and products aimed at enhancing equipment performance and reducing costs [1] Group 2 - The China Securities Defense Index closely tracks the performance of listed companies under the ten major military groups and those providing weaponry and equipment to the armed forces [2] - As of June 30, 2025, the top ten weighted stocks in the China Securities Defense Index account for 43.29% of the index, with companies like AVIC Shenyang Aircraft Corporation and AVIC Engine Holdings among the leaders [2] - The Defense ETF has the lowest management and custody fees in its category at 0.40%, making it an attractive option for investors [2]