Cash flow strategy surges against the trend! Cash Flow ETF Index (563390) accumulates over 2.2 billion yuan in net inflows over 41 consecutive trading days, ranking among the top of its category

Yesterday, influenced by the remarks of Iran’s Supreme Leader, the Iran-Israel conflict expectations shifted again, causing crude oil prices to surge. Against the backdrop of geopolitical tensions driving oil prices higher, the CSI All Share Free Cash Flow Index, due to its relatively high weighting in oil and petrochemical sectors (11.20%), may be directly echoing the logic of rising oil prices. This has led to increased market attention on the first batch of cash flow ETFs tracking the CSI Cash Flow Index, particularly the CSI All Share Cash Flow ETF (563390).

Since January 7, 2026, the CSI All Share Cash Flow ETF (563390) has experienced 41 consecutive trading days of fund inflows, accumulating a total of 2.217 billion yuan in net capital inflow during this period. It is the only ETF tracking the CSI Cash Flow Index in the same period to have net inflows exceeding 1.6 billion yuan. Supported by continuous incremental funds, the fund shares and scale of the CSI All Share Cash Flow ETF (563390) have also increased for 41 consecutive trading days, reaching a new high of 2.155 billion shares and 3.14 billion yuan, respectively.

Currently, strategies based on the CSI Cash Flow Index, representing free cash flow, are experiencing a triple resonance of defensive attributes, high profitability quality, and hard asset themes. First, geopolitical disturbances are increasing market volatility, boosting investor demand for “certainty” assets. Free cash flow, as a measure of a company’s real profitability, can effectively filter out accounting profit distortions and identify high-quality companies with stronger risk resistance. Second, as A-share listed companies shift from scale expansion to high-quality operations, free cash flow strategies may more accurately capture improvements in profitability quality.

Additionally, hard assets with high barriers and significant assets, known as HALO assets, are becoming popular investment directions. The CSI Cash Flow Index’s constituent stocks have high weights in typical HALO assets such as oil and petrochemicals (11.2%), basic chemicals (11.1%), and non-ferrous metals (10.0%), aligning well with the current market’s valuation re-evaluation of tangible hard assets.

Looking at historical performance, the CSI Cash Flow Index has demonstrated strong long-term endurance. Wind data shows that since its inception, the CSI Cash Flow Total Return Index has gained 884.31%, with an annualized return of 21.28% over the period. This outperforms the 300 Cash Flow Total Return and 500 Cash Flow Total Return indices, which achieved annualized returns of 16.18% and 16.36%, respectively. With its long-term cyclical resilience, it is expected to serve as an important core holding in asset portfolios.

The manager of the CSI All Share Cash Flow ETF (563390), Huatai-PineBridge, is one of the earliest ETF managers in China and among the first to develop dividend strategy ETFs. With over 19 years of experience in Smart Beta strategies, Huatai-PineBridge has built a comprehensive suite of dividend and low-volatility themed ETFs, including the first dividend low-volatility ETF—Huatai-PineBridge Dividend Low Volatility ETF (512890), the first Smart Beta ETF—Huatai-PineBridge Dividend ETF (510880), and Hong Kong Stock Connect dividend ETFs investing in high-dividend stocks via QDII—Huatai-PineBridge Hong Kong Stock Connect Dividend ETF (513530) and Huatai-PineBridge Hong Kong Stock Connect Low-Volatility Dividend ETF (520890). As of March 12, 2026, the total scale of its dividend ETFs reached 52.476 billion yuan.

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Editor: Shi Xiuzhen SF183