Today (November 12), the Leading Nonferrous Metals ETF (159876), which tracks top players in the nonferrous metals sector, showed strong performance despite market volatility, with an intraday gain of 1.34% and currently up 0.56%. Among its constituents, Huayu Mining surged over 8%, while Aluminum Corporation of China (CHALCO) rose more than 5%. Other notable gainers included Huaxi Nonferrous Metals, Hailiang Co., and Yunnan Aluminium.

Key advantages of the Leading Nonferrous Metals ETF (159876) benchmark index compared to peers: 1. **Long-term outperformance**: Since its inception, the index has surged 181.27%, significantly outpacing other nonferrous metals indices such as the Nonferrous Metals Index (164.89%), Industrial Nonferrous Metals Index (156.47%), and CSI Nonferrous Metals Index (174.65%).

2. **Strong and sustained growth potential**: In 2025, the index's net profit attributable to shareholders is projected to grow by 54.5% year-on-year, ranking first among comparable indices. By 2026, it is expected to maintain a leading growth rate of 21.0%, demonstrating robust short- and medium-term potential compared to other nonferrous metals indices and the broader CSI 300 benchmark.

Market insights suggest that China's electrolytic aluminum production is nearing its peak. The country's approved capacity stands at 45.43 million tons (set in 2017). Industry forecasts indicate 2025 output will reach approximately 44.2 million tons, hitting maximum capacity. With domestic capacity fully utilized, any demand surge or supply disruption could quickly shift the market into deficit, creating a "fragile balance" in the electrolytic aluminum sector.

Looking ahead, CITIC Securities predicts tight supply will drive prices for copper and cobalt higher, while lithium prices may rise due to stronger-than-expected energy storage demand. The bullish outlook for precious metals like gold remains unchanged. Underperforming sectors like electrolytic aluminum could gain more attention in Q4. Continued liquidity easing and global efforts to secure critical resources are expected to sustain commodity investment momentum.

**The "Metal Heart" of Future Industries and "Golden Blood" of Modern Manufacturing** Given varying cyclical drivers across different metals, diversification offers a strategic approach to capturing sector-wide beta. The Leading Nonferrous Metals ETF (159876) and its linked funds (Class A: 017140; Class C: 017141) track the CSI Nonferrous Metals Index, which as of October allocated 27.7% to copper, 14.4% to aluminum, 13.2% to gold, 10.2% to rare earths, and 9.1% to lithium—providing risk diversification versus single-metal exposure.

**Risk Disclosure**: The ETF passively tracks the CSI Nonferrous Metals Index (base date: December 31, 2013; launch date: July 13, 2015). Historical annual returns: +35.84% (2020), +35.89% (2021), -19.22% (2022), -10.43% (2023), +2.96% (2024). Constituent stocks are adjusted per index rules; past performance does not guarantee future results. Stock mentions are illustrative and not investment advice or indicative of fund holdings. The fund is rated R3 (moderate risk) and suitable for balanced (C3) or higher-risk investors. Investment decisions carry inherent risks; performance is not guaranteed.