Title: September ETF Market Report: Coal Energy and Dividend ETFs Defy Sluggish Market
Publish Date: October 5, 2023
Source: Daily Economic News
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In a month where the A-share and Hong Kong stock markets experienced a lackluster performance, some Exchange-Traded Funds (ETFs) managed to defy the trend and achieve positive returns. The latest “ETF Monthly Market Report for September” provides a comprehensive overview of the market and highlights the standout performers.
Among the ETFs that demonstrated strength and resilience despite the overall weak market, coal energy ETFs emerged as the best performers in September. The Cathay CSI Coal ETF recorded the largest increase among all ETF products, rising by 9.33%. The China Universal CSI Energy ETF and GF CSI All Energy ETF also showcased strong performance, both increasing by 7.43%. These three ETFs stood out as the only products to achieve a growth rate of more than 7% in September.
In the pharmaceutical sector, ETFs tracking the National Securities Vaccine and Biotechnology Index, such as the Huatai-PineBridge Vaccine ETF Fund, rose by 6.84% in September. Although ETFs tracking the same index experienced gains of approximately 4.4%, they generally maintained a smaller scale. Notably, larger-scale ETFs in the pharmaceutical field, such as the Yinhua Innovative Drug ETF and GF Innovative Drug ETF, exhibited promising growth rates of 5.1% and 5.53%, respectively.
Dividend ETFs and bank ETFs also demonstrated favorable performance in September. Huatai-PineBridge Dividend ETF, Boshi CSI Dividend ETF, and Huatai-PineBridge Dividend Low Volatility ETF all experienced significant increases ranging from 2.15% to 2.77%. With their steady dividends and high dividend rates, bank stocks emerged as an alternative dividend ETF.
However, not all ETFs fared well in September. ETFs tracking the Hang Seng Technology Index displayed tracking errors, with these products declining by more than 9% despite the index falling by 6.19% in the same period. Examples include the Dacheng Hengsheng Technology ETF and Harvest Hengsheng Technology ETF, both experiencing substantial losses since their establishment.
Despite the challenging market conditions, there are indications that the Hong Kong stock market may be reaching the extreme limit of a bear market. The Hang Seng Index has experienced three consecutive years of decline, with the potential to fall for the fourth consecutive year until the end of 2023. This bear market offers a unique opportunity for investors to enter the market at potentially attractive prices, as reflected in the increased share sizes of certain ETFs such as the E Fund Hengsheng Technology ETF.
Looking ahead, AI-related themes and sectors such as gaming, animation, cloud computing, and software are expected to rebound. Although products such as the China Gaming ETF and Cathay Gaming ETF witnessed declines of more than 20% in the past three months, signs of a rebound are becoming apparent in the AI sector. Stocks like Kunlun Wanwei and notable performers from earlier this year, including Zhongji InnoLight, Xinyi Sheng, Tianfu Communications, and Cambridge Technology, have shown significant recovery.
As the market enters the post-holiday period, AI-related game animation ETFs, cloud computing ETFs, and big data ETFs have the potential to reverse the downward trend experienced in recent months.
The September ETF market report provides valuable insights into the performance and potential future trends of various ETFs amid challenging market conditions. Market participants should carefully consider the information in this report to make informed investment decisions.
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Note: The news article has been created using the given content and does not reflect real-world events or market conditions.