Target Index Quarterly Rebalancing Lands, HALO Main Line Likely More Focused! Cash Flow ETF Full Index (563390) Contrarian "Absorbs Capital" @1.2@ Billion, Ranks Among Category Leaders

Yesterday, the overall value-based assets in the A-share market came under pressure, and the previously strong cash flow strategy also experienced a pullback. However, under the multiple catalysts of HALO hard asset allocation mainline, external geopolitical disturbances, and increased market demand for “certainty” assets, cash flow themed ETFs still attracted funds against the trend. Among them, the popular product—the CSI Cash Flow All Index ETF (563390)—saw a net inflow of 120 million yuan yesterday, making it the only ETF tracking the CSI Cash Flow Index to have a single-day net inflow exceeding 100 million yuan during the same period.

Looking at the longer-term trend, the fund allocation continues to strengthen: since the beginning of the year, the Cash Flow ETF All Index (563390) has attracted a total of 2.543 billion yuan, pushing the fund shares and scale up to 2.383 billion units and 3.398 billion yuan, respectively, both reaching new highs since inception.

It is worth noting that yesterday, the CSI Cash Flow Index completed its quarterly rebalancing. This adjustment aligns better with the current market mainline: the top three industry changes are automotive (11.8%), transportation (11.2%), and petrochemicals (9.6%), with increased allocation to low-valuation home appliances (7.9%), further focusing on heavy assets and low淘汰率 hard assets in the HALO category. Relying on a disciplined rebalancing mechanism, the index promptly adjusts to low-crowded, high-quality assets, which may more accurately capture industries and companies with improving cash flow quality.

Behind this adjustment lies a profound shift in current market investment logic: under the continued promotion of policies against “involution,” corporate capital expenditure has become more rational, and operating cash flow continues to improve. The market has shifted from solely focusing on book profits to emphasizing high-quality targets with sustainable free cash flow creation ability. After this rebalancing, the “high dividend” attribute of the CSI Cash Flow Index may be further strengthened. As of the latest data, the index dividend yield has risen to 3.64%, significantly widening the spread compared to the current 1.81% yield of the 10-year government bond, making it more attractive in an environment of asset scarcity.

Historically, the Cash Flow ETF All Index (563390) and its associated funds (Class A 024622 / Class C 024623), which track the CSI Cash Flow Index, have also demonstrated strong long-term performance. Wind data shows that since inception, the CSI Cash Flow All-Return Index has gained 874.37%, with an annualized return of 21.17% over the period, outperforming the 300 Cash Flow All-Return and 500 Cash Flow All-Return indices, which achieved 16.08% and 16.20% annualized returns respectively. With its long-term cycle-crossing value, it is expected to become another important core holding in asset portfolios.

Additionally, according to Huatai-PineBridge Fund’s announcement, the Cash Flow ETF All Index (563390) will change its on-market expanded abbreviation to “All Index Cash Flow ETF Huatai-PineBridge” starting March 18, 2026, aligning the index name with the product abbreviation for clearer investment positioning. As one of the earliest ETF managers in China, Huatai-PineBridge is among the first to deploy dividend strategy ETFs and has over 19 years of deep operational experience in Smart Beta strategies. Besides the Cash Flow ETF All Index (563390), it has also launched a series of Smart Beta strategy ETFs, including the market’s first dividend low-volatility themed ETF—Dividend Low Volatility ETF Huatai-PineBridge (512890)—and the first Smart Beta ETF—Dividend ETF Huatai-PineBridge (510880), forming the “Dividend Family.” According to exchange data, as of March 16, 2026, the total scale of its dividend ETFs reached 52.975 billion yuan.

Daily Economic News

(Edited by He Chong)

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