The nonferrous metals sector has become a hot favorite among investors. As of December 10, Nonferrous Metals Leaders ETF (159876), which covers industry leaders, recorded three consecutive days of net inflows totaling 104 million yuan. Over the past 20 days, cumulative inflows reached 294 million yuan, signaling strong market confidence in the sector’s future performance. Data shows that as of December 10, Nonferrous Metals Leaders ETF (159876) had a total size of 805 million yuan, making it the largest ETF among three products tracking the same underlying index.

**Why Are Investors Flocking to Nonferrous Metals ETFs?** 1. **Macro Factors: Fed Rate Cut Could Boost Metal Prices** At 03:00 Beijing time on Thursday, the Fed announced a 25-basis-point rate cut, lowering the federal funds rate target range to 3.50%-3.75%, in line with market expectations of a "hawkish cut." Spot gold surged by $20 shortly after the decision. This marks the Fed’s third consecutive rate cut this year, bringing the total reduction to 75 basis points. Notably, Fed Chair Powell stated that further rate hikes are unlikely to be the primary expectation. China Securities Co., Ltd. noted that as long as the Fed remains in a rate-cutting cycle, nonferrous metals prices could continue to rise. Analysts highlight that Fed rate cuts typically weaken the dollar, supporting dollar-denominated metal prices.

2. **Industry Breakthrough: Aluminum Battery Tech Advances** A research team from Tianjin University recently developed a low-corrosion "organic dichloride" electrolyte, removing a major obstacle for aluminum-metal batteries in large-scale applications. Zhongyuan Securities pointed out that domestic aluminum production is constrained by a 45-million-ton capacity cap, with operating capacity already near its peak. Meanwhile, demand remains resilient. Given tight supply, low inventories, and cost support, aluminum prices are expected to stay firm, sustaining high industry profitability. China Securities Co., Ltd. added that amid global macroeconomic volatility and geopolitical tensions, nonferrous metals—with their supply-demand rigidity, policy tailwinds, and safe-haven appeal—are becoming a core long-term asset allocation. Future price trends may be driven by mining supply constraints, green energy transitions, and monetary system shifts.

**Cyclical Upswing: Can the "Nonferrous Bull Run" Continue?** Different metals face varying demand cycles and drivers, making diversification key. Nonferrous Metals Leaders ETF (159876) and its linked funds (Class A: 017140, Class C: 017141) provide exposure to copper, aluminum, gold, rare earths, and lithium, offering risk diversification compared to single-metal investments.

**Risk Disclosure**: Nonferrous Metals Leaders ETF tracks the CSI Nonferrous Metals Index (base date: Dec 31, 2013; launched July 13, 2015). The index’s annual returns from 2020-2024 were: +35.84%, +35.89%, -19.22%, -10.43%, and +2.96%. Past performance does not guarantee future results. Constituent stocks are for reference only and do not represent fund holdings or recommendations. The fund carries medium risk (R3) and suits balanced (C3) or higher-risk investors. Investment decisions should be made independently, and no liability is assumed for losses arising from this information.