Resource ETF Scale Shows Significant Growth Within the Year

Since the beginning of this year, the performance of ETF (Exchange-Traded Fund) sizes across different categories has shown divergence, with resource-related products leading in scale. Wind Information data shows that as of March 16, resource ETFs such as gold and oil & gas have grown by over 10 billion yuan this year. Thematic ETFs like dividends and power grid equipment have also performed notably.

Data indicates that the hedging properties of precious metals like gold have become more prominent, making them one of the most eye-catching assets this year; currently, seven ETFs linked to Au9999 (Shanghai Gold Exchange Gold 9999) have a total scale of 309.09 billion yuan, with an increase of 90.2 billion yuan this year, ranking first among commodity ETFs. Additionally, seven ETFs linked to SHAU.SGE (Shanghai Gold) have also performed well, with a total scale of 36.2 billion yuan, growing by 13.562 billion yuan this year.

Wang Xiang, fund manager at Bosera Fund, told Securities Daily that since the beginning of the year, global liquidity concerns combined with declining expectations for loose monetary policies overseas have increased the demand for risk aversion, making gold and other precious metals the main assets for allocation. This is the primary reason for the continuous growth in the scale of such thematic funds. Furthermore, geopolitical risks are increasingly impacting the global energy supply chain, which will significantly push up international oil prices, leading to a noticeable increase in related thematic ETF scales.

Wu Zijie, a precious metals researcher at Jinnui Futures, told reporters that recently, market logic has shifted from risk aversion to concerns over global inflation, with a clear change in risk appetite. Short-term, precious metal prices are under pressure from liquidity squeezes and US bond yields, likely causing significant volatility. However, in the medium to long term, core supports such as global geopolitical risks and structural shortages remain unchanged, making precious metals assets still worth attention, with related thematic funds maintaining growth momentum.

Data shows that the oil & gas sector also performed strongly. ETFs such as the China Securities Oil & Gas, Oil & Gas Industry, and Oil & Gas Resources saw overall growth this year; as of now, these three product categories have increased by 7.7 billion yuan, 7.3 billion yuan, and 4.2 billion yuan respectively, totaling 19.2 billion yuan in growth.

Liu Jin, chief macro analyst at COFCO Futures Research Institute, told reporters that international geopolitical risks have driven oil prices higher, and investor buying of oil & gas funds remains active. In the medium term, international oil prices are expected to remain well-supported, with a high probability of staying above $100 per barrel, suggesting that the scale of oil & gas funds may continue to grow.

Since the beginning of this year, ETFs focused on dividends and power grid equipment have also performed well. Data shows that benefiting from the global energy transition and grid upgrade expectations, power grid equipment ETFs have grown nearly 30 billion yuan this year, becoming a “dark horse” among stock ETFs. Meanwhile, traditional high-dividend and resource index funds have also attracted capital, with significant growth in their scales—67 billion yuan and 2 billion yuan respectively.

In the context of market volatility, strategy index funds emphasizing corporate financial quality, such as Free Cash Flow and CSI Cash Flow, have also expanded rapidly this year, reflecting investors’ pursuit of certainty. Their scales have increased by 16.3 billion yuan and 6 billion yuan respectively.

Overall, since the beginning of this year, risk aversion sentiment has continued to drive commodities like gold higher. High-growth industries such as power grid equipment, as well as defensive strategies like dividends and cash flow, have also been favored by investors.

(Edited by: Xu Nannan)

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