Group 1 - The coal industry theme funds have shown a downward trend in the first quarter of the year, but began to rebound in early April, continuing a structural rally into May [1] - As of May 23, all 46 coal industry theme funds have seen net value increases since May, with an average growth rate of 4.11%, and 10 funds exceeding 5% growth [1] - Three main factors support this trend: lower interest rates enhancing the appeal of coal as a high-dividend asset, policy encouragement for increased dividends from listed companies, and an improving supply-demand balance with reduced domestic supply and rising demand due to summer electricity peaks [1] Group 2 - Despite the mid-term logic of the coal sector remaining unchanged, short-term gains have raised discussions about potential pullback risks [2] - Investors are cashing out at relatively high levels, increasing volatility in the sector, especially as prices approach previous highs or key resistance levels [2] - To mitigate potential volatility, fund managers are advised to adopt a balanced strategy, including diversified investments and selecting high-quality stocks with strong fundamentals and risk resilience [2][3]