On March 2, 2026, escalating tensions between the U.S. and Iran drove a significant surge in the oil and petrochemical sector, which is the largest weighted industry in the 300 Cash Flow Index, rising by 9.13%. Cyclical sectors with strong cash flows, such as energy and precious metals, led the gains. The 300 Cash Flow Index closed up 2.84%, notably outperforming major broad-based indices like the CSI Dividend Index, the Shanghai Composite Index, and the ChiNext Index, as well as other mainstream free cash flow indices.
The 300 Cash Flow ETF (562080), which closely tracks the index and is the largest and most liquid fund of its kind, opened higher and continued to climb, finishing the day with a strong gain of 3.37%. Its closing price reached 0.675 yuan, setting a new all-time high since its listing. Daily turnover exceeded 60 million yuan. Notably, since its debut on April 7, 2025, the ETF has quietly achieved twelve consecutive monthly gains, with a cumulative total of 39 record highs since listing.
Among the constituents, 30 of the 50 large-cap blue-chip "cash cow" stocks closed higher. The index's top two weighted stocks, CNOOC (weight 10.43%) and PetroChina (weight 10.14%), both surged by the daily limit, serving as the primary drivers of the index's advance. Within the top ten constituents, Zijin Mining Group and China Molybdenum gained over 3%, COSCO Shipping Holdings rose 2.86%, and China Telecom increased by 1.38%.
The sudden escalation in U.S.-Iran tensions was a key catalyst. Starting February 28, the U.S. and Israel conducted military strikes against Iran, after which Iran announced a ban on vessel passage through the Strait of Hormuz—a critical chokepoint for approximately 30% of the world's seaborne oil. Concerns over potential disruptions to crude oil supply intensified sharply, driving international oil prices significantly higher and benefiting the oil, petrochemical, and upstream resource sectors.
Public information indicates that the 300 Cash Flow ETF (562080) passively tracks the 300 Cash Flow Index. This index selects 50 companies from the CSI 300 constituents with robust free cash flow and sound financial health. Companies with a total market capitalization exceeding 500 billion yuan collectively account for 46.83% of the index weight, reflecting a typical large-cap blue-chip style.
In terms of sector allocation, the index excludes financials and real estate. Compared to the CSI 300 and related dividend indices, the 300 Cash Flow Index shows significant overweight positions in oil and petrochemicals, home appliances, and nonferrous metals. These three cyclical sectors—oil and petrochemicals, nonferrous metals, and transportation—together constitute nearly 40% of the index. All constituent companies are industry leaders with high free cash flow and strong profitability. Against the backdrop of rising geopolitical tensions, higher oil prices, increasing inflation expectations, and global supply chain restructuring, the cash flow strategy—which focuses on companies' genuine profitability—proves more forward-looking in capturing inflection points in corporate earnings cycles compared to dividend strategies that emphasize historical payouts, demonstrating stronger offensive characteristics during cyclical upturns.
Over the long term, the effectiveness of the cash flow strategy has been validated. From the beginning of 2017 through the end of December 2025, the 300 Cash Flow Total Return Index achieved a cumulative return of 243.78%, with an annualized yield of 15.28%, significantly outperforming the CSI 300, CSI 300 Dividend, and 300 Dividend Low Volatility indices. In terms of risk-adjusted returns, the index's annualized Sharpe ratio during this period was 0.91, indicating a favorable long-term holding experience.
The current market narrative is shifting from "policy expectations" to "earnings delivery." Companies with high free cash flow possess solid盈利 quality, combining the defensive attributes of core assets with the offensive potential of high-growth sectors. Investors may consider using the 300 Cash Flow ETF (562080) and its feeder funds (Class A 024367 / Class C 024368) to gain convenient exposure to high-quality "cash cows" within the CSI 300 universe.
Investors are reminded that recent market volatility may be elevated, and short-term performance is not indicative of future results. It is essential to invest rationally based on individual financial circumstances and risk tolerance, with careful attention to position sizing and risk management.