Influenced by positive momentum from U.S. markets, semiconductor leaders are leading the gains significantly today (July 1st). Companies such as Shanghai Sinyang Semiconductor Materials Co., Ltd., NAURA Technology Group Co., Ltd. surged over 9%, with Advanced Micro-Fabrication Equipment Inc. China, Montage Technology Co., Ltd., Changchuan Technology, and Jiangbolong following suit with substantial gains. The Huabao Electronics ETF (515260), which encompasses hot concepts like memory chips, PCBs, and glass substrates, saw its on-market price rise over 1.5% intraday and is currently up 1.38%, setting a new historical high.

Accompanying the fervent market activity, capital is actively flowing in for positioning. Data shows the Huabao Electronics ETF (515260) has consecutively attracted a total of 1.8 billion yuan in net inflows over the past eight trading sessions.

Notable Capital Inflows

Notably, as of this writing, over 18 billion yuan in main force capital has poured into the electronics sector. Extending the view, the sector has attracted 123.3 billion yuan over the past five days and 444.9 billion yuan over the past twenty days, consistently ranking first in net capital absorption among the 31 Shenwan primary industries. BOE Technology Group Co., Ltd. and TCL Technology Group Corporation each saw net main force capital inflows exceeding 1.6 billion yuan, taking the top two spots on the A-share capital attraction list.

Overnight, AI enthusiasm drove U.S. stock gains, with the Dow Jones Industrial Average hitting a new high. Memory-related concepts have surged over 300% in the past half-year, the Philadelphia Semiconductor Index rose 3.92%, Advanced Micro Devices, Inc. gained over 7%, SpaceX rose over 4%, while NVIDIA Corporation, Apple Inc., and Tesla, Inc. all climbed over 2%. Memory stocks continued their strong rally, with SanDisk soaring over 10% after Bernstein raised its price target from $1,700 to $3,000, suggesting that new-generation long-term supply agreements are reshaping the industry's business model.

Sector Analysis and Outlook

Regarding memory chips, JPMorgan Chase & Co. points out that this supercycle will likely be "higher and longer," with the global memory TAM (Total Addressable Market) projected to surge from $214 billion in 2025 to $1.68 trillion by 2028. DRAM revenue is expected to reach $1.23 trillion by 2028, with CPUs becoming a core catalyst for the new round of memory price increases.

In the glass substrate sector, Corning's new "Glass Bridge" technology has ignited market expectations, interpreted by institutions as a milestone event marking the transition of glass substrates "from the laboratory to large-scale mass production."

Looking ahead, Soochow Securities notes that July will usher in a concentrated window for semi-annual earnings pre-announcements, where business momentum will be a core pricing factor. The AI hardware industry chain, primarily covered by the electronics sector, is one of the directions where positive semi-annual earnings clues are concentrated.

Long-Term Performance

Taking a longer-term view, the underlying index of the Huabao Electronics ETF (515260), the Electronic 50 Index, has accumulated a gain of 263.38% from the "9.24" market trend up to the end of June. This outperforms comparable electronics indices like the CSI Electronics Index (262.61%) and also surpasses major broad-based indices such as the STAR 50 (243.35%), the ChiNext 50 (209.86%), and the CSI 300 (54.99%).

Data period: 2024.9.24-2026.6.30. The Electronic 50 Index's annual performance for the last five full years is: 2021, 3.27%; 2022, -38.63%; 2023, 1.03%; 2024, 27.45%; 2025, 43.49%. Index constituent stocks are adjusted according to the index methodology, and its back-tested historical performance does not indicate future results.

ETF Overview and Positioning

The Huabao Electronics ETF (515260) and its feeder funds passively track the Electronic 50 Index, heavily weighted in semiconductors and consumer electronics, and aggregates popular concepts like PCBs, MLCCs, glass substrates, memory chips, and semiconductor equipment. Its top holdings include companies such as Luxshare Precision Industry Co., Ltd., Cambricon Technologies Corporation Limited, Foxconn Industrial Internet Co., Ltd., and Semiconductor Manufacturing International Corporation. Additionally, this ETF is eligible for margin trading and the Stock Connect programs, serving as an efficient tool for a one-click allocation to core electronics sector assets.

Data indicates that the underlying index of the Huabao Electronics ETF (515260) is deeply linked to global technology giants. As of the end of May, the weightings of the Apple, NVIDIA, and Google supply chains were 49.34%, 28.50%, and 23.85% respectively, positioning it to potentially benefit from the industrial expansion and technological innovation of these tech leaders.

As of the end of June, the latest size of the Huabao Electronics ETF (515260) is 1.109 billion yuan, making it the largest ETF among the two ETFs tracking the same index in the entire market.

Reminder: Recent market volatility may be significant, and short-term gains/losses do not predict future performance. Investors must invest rationally based on their own financial situation and risk tolerance, paying high attention to position sizing and risk management.

For investors with a long-term positive view on the technology growth theme but concerned about volatility in high-valuation sectors, they may consider positioning in technology sub-sectors with valuations at relatively low levels, such as the Huabao Software Development ETF (159036), Huabao Big Data ETF (516700), and Huabao IT Application Innovation ETF (562030).

ETF fee-related note: ETFs do not charge sales service fees. Subscription and redemption agents may charge commissions of up to 0.5%, which include related fees charged by stock exchanges and registration institutions. On-market trading fees are subject to the actual charges by securities firms.

Risk Disclosure: The Huabao Electronics ETF passively tracks the CSI Electronic 50 Index (Base Date: 2008.12.31, Launch Date: 2009.7.22). The Huabao Big Data ETF passively tracks the CSI Big Data Industry Index (Base Date: 2012.12.31, Launch Date: 2016.10.18). The Huabao IT Application Innovation ETF passively tracks the CSI IT Application Innovation Index (Base Date: 2017.12.29, Launch Date: 2012.12.21). The Huabao Software Development ETF passively tracks the CSI All Share Software Development Index (Base Date: 2021.12.31, Launch Date: 2023.3.29). Index constituent stocks are adjusted according to the index methodology, and their back-tested historical performance does not indicate future results. Individual stocks and index constituents mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form nor represent the holdings information or trading动向 of any fund managed by the manager. The fund manager assesses the risk rating of the Huabao Electronics ETF, Huabao Big Data ETF, Huabao IT Application Innovation ETF, and Huabao Software Development ETF as R3-Medium Risk, suitable for Balanced (C3) and above investors. Suitability matching opinions are subject to sales institutions. Any information appearing in this article is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to readers, nor shall they be liable for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment requires caution.