My experience with this year's tech rally has been a constant cycle of chasing momentum: jumping into optical modules when they surged, rotating to memory chips when they slowed, and shifting to semiconductor equipment before feeling the urge to move again. After circling through all these sectors, I realized my returns probably lagged a simple index. It was only upon reflection that I noticed a comprehensive tech benchmark, the CSI Tech Leading Index (Ticker: 931087), has delivered superior cumulative returns across 1-year, 3-year, and 5-year horizons compared to the STAR 50. It's a belated discovery, but perhaps not too late to act on.

Why This Index Leads: A Track Record of Outperformance

We've traditionally used the STAR 50 as the go-to indicator for hard-tech market trends. However, the data paints a different picture. As of August 27, 2026, the CSI Tech Leading Index posted gains of 45.75%, 122.4%, and 46.73% over the past 1-year, 3-year, and 5-year periods respectively. In contrast, the STAR 50 managed only 33.08%, 94.56%, and 14.40% over the same spans. Across all three timeframes, the Tech Leading Index has clearly outperformed. If the STAR 50 is the standard edition of tech broad-based indices, the Tech Leading Index is unquestionably the "Pro Max" iteration. Note: Data from Wind; 1-year period from 2025.8.28 to 2026.8.27, 3-year from 2023.8.28 to 2026.8.27, 5-year from 2021.8.28 to 2026.8.27. The CSI Tech Leading Index base date is 2012.6.29, launched on 2019.3.20. Its annual returns from 2021 to 2025 were -3.92%, -34.84%, 0.81%, 11.50%, and 51.54%, with annualized volatility of 21.46%, 26.5%, 19.83%, 36.36%, and 27.34% respectively. Constituent stocks are adjusted according to index rules, and backtested performance does not guarantee future results. After reviewing these figures, the critical question for investors is what drives this sustained outperformance. The answer boils down to two key attributes: purity and leadership. First, it offers higher industry concentration. The index is compiled with a sharp focus on core technology sectors, with semiconductors, electronics, and communications equipment plus technical services accounting for nearly 90% of its weight. This aligns closely with current market themes like the AI computing chain, semiconductor localization, and optical communications. In contrast, some broader tech indices suffer from diluted compositions and theme drift, causing them to miss out on the core gains of structural rallies. Note: Source from CSI Index, as of 2026.8.27. Second, it emphasizes stronger leadership qualities. Rather than simply ranking by market cap, the index uses a comprehensive evaluation of company scale, market share, growth potential, and R&D investment to select leaders from each niche. This includes optical module frontrunner Zhongji Innolight, semiconductor equipment leader NAURA Technology, memory chip major GigaDevice, computing chip powerhouse Hygon Information Technology, and PCB leader Shengyi Technology, all benchmark enterprises with strong core competitiveness. Note: Source from CSI Index, as of 2026.8.27. Index constituents are for display only and do not constitute investment advice or reflect fund holdings. A key feature of this AI computing rally is that leading companies show stronger earnings certainty and stock price elasticity than the sector average. By focusing on top players across various tracks, the index effectively captures the premium of sector leaders, enabling consistent excess returns over mainstream tech benchmarks.

Solid Fundamentals: Four Key Sectors in Sync

While impressive returns are the index's external appeal, solid fundamentals form its core foundation. Currently, the CSI Tech Leading Index's major sectors—optical modules, memory chips, semiconductor equipment, and PCB—are all in their respective industry upcycles, with multiple tailwinds converging. Optical modules continue to shine. The explosive growth of AI computing is driving a sustained boom in the optical communications supply chain. The industry is in a technology upgrade window from 800G to 1.6T, and top manufacturers with better customer structures and stronger economies of scale are expected to solidify their competitive edge, with market share increasingly concentrating among leaders. Memory chips are evolving. The massive data storage demands from AI model training and inference are pushing the memory sector into a new growth cycle. Supply-side capacity expansion remains moderate, and the supply-demand gap is expected to persist through 2027. Meanwhile, accelerated listings of domestic memory makers and their expansion plans are set to fast-track capacity releases, opening up more room for the domestic memory supply chain. Semiconductor equipment is entering a super era. Driven by super expansion cycles in both memory and logic chips, the semiconductor equipment industry faces historic opportunities. Domestic equipment companies are making strides in technical validation and order intake, with their global expansion strategy gradually paying off and overseas markets poised to become a new growth driver. PCB is being reshaped by computing demand. AI servers and high-speed communication devices are creating a surge in demand for high-layer-count boards and HDI boards. PCB is no longer the "traditional supporting player." The industry's shift toward high-end products is clear, with computing demand becoming its biggest source of incremental growth. All four sectors are in solid shape, moving upward together. This explains why the index keeps outperforming—the strength is rooted in industry fundamentals, AI earnings have been consistently validated, and leading companies' profit certainty is simply more robust than the sector average.

How to Gain Exposure: Considering Related ETFs

With the index analysis complete, the practical question is how to invest. Opting for an ETF offers a convenient one-stop approach. The Hua Bao Tech ETF (515000) tracks the CSI Tech Leading Index, holding 50 core A-share tech assets with a blend of "hard-tech beta" and "quality leader alpha." Its top ten holdings feature leaders from optical modules, semiconductor equipment, memory chips, PCB, and innovative drugs. Feeder funds are available as A-class (007873) and C-class (007874). Data sources: Shanghai and Shenzhen exchanges, CSI Index. Reminder: Recent markets may see significant volatility, and short-term movements do not predict future performance. Investors should make rational decisions based on their own capital conditions and risk tolerance, with careful attention to position and risk management. ETF fee details: For subscriptions or redemptions, agencies may charge commissions up to 0.5%. On-exchange trading fees follow actual brokerage rates, with no sales service fee applied. Feeder fund fee details: For Hua Bao Tech ETF Feeder A, subscription fees are 1.00% for amounts under 1 million yuan, 0.60% from 1 million to 2 million yuan, and 1,000 yuan flat for amounts above 2 million. Redemption fees are 1.50% within 7 days, 0.50% from 7 to 180 days, and 0.00% beyond 180 days; no sales service fee applies. Hua Bao Tech ETF Feeder C has no subscription fee; redemption fees are 1.50% within 7 days and 0.00% beyond; the sales service fee is 0.40% per year. ETF subscription and redemption agencies may charge commissions up to 0.5%. Risk disclosure: The Hua Bao Tech ETF passively tracks the CSI Tech Leading Index, with a base date of 2012.6.29 and launch on 2019.3.20. Constituent stocks are adjusted per index rules, and backtested results do not guarantee future performance. Index stocks are shown for illustration only and do not represent investment advice or any fund's holdings or trading activity. The fund's risk rating is R3-medium, suitable for balanced (C3) and above investors. All information in this article, including stocks, commentary, forecasts, charts, indicators, and theories, is for reference only. Investors are solely responsible for their own investment decisions. Any views or predictions herein do not constitute investment advice, and no liability is assumed for direct or indirect losses from using this content. Fund investing carries risks; past performance does not indicate future results, and the performance of other funds managed by the manager does not guarantee this fund's performance. Invest with caution.