Industrial Non-ferrous ETF Huaxia (515040) hits a 2-day winning streak, with the industrial metals sector's prosperity expected to continue

On July 21, the three major A-share indices showed divergent performance, with the non-ferrous metals sector demonstrating strong resilience. As of 10:45, the Huaxia Industrial Non-Ferrous ETF (515040) rose by 0.64%, with a trading volume of 4.3768 million yuan. Performance among its constituent stocks varied; Northern Rare Earth, Western Mining, and Xingye Silver & Tin saw gains, with Northern Rare Earth up 2.42% and Western Mining up 2.72%. In contrast, stocks such as Dongyangguang and Yunnan Aluminum experienced pullbacks.

In terms of news flow, the non-ferrous metals sector has recently attracted significant market attention. On one hand, global energy transition, AI data center infrastructure construction, and sustained high prosperity in power investment are profoundly reshaping the demand structure for metals like copper and aluminum. Specifically, the surge in AI demand combined with tightening supply has driven a price increase wave for industrial metals such as tin, tantalum, and indium. On the other hand, geopolitical factors such as great power competition and resource nationalism have increased disruptions to global mine supplies, highlighting the fragility of traditional supply chains and thereby continuously strengthening the strategic asset status of non-ferrous metals.

In response, East Money Securities pointed out that against the backdrop of various countries successively listing resources like copper on their critical mineral lists, "security generalization" has become the core logic dominating investment in the non-ferrous metals sector. Analysts at Essence Securities believe that rare earths and upstream materials related to AI have become the two core prosperity themes currently. Heavy rare earths, such as dysprosium oxide and yttrium oxide, benefit from the expansion of high-end MLCC demand, with a clear upward trend in prices. Meanwhile, key upstream AI materials such as MLCC dielectric powder, Low CTE electronic cloth, and M9 copper foil have also entered an inflation cycle.

Related ETF: The Huaxia Industrial Non-Ferrous ETF (515040) closely tracks the CSI Industrial Non-Ferrous Metals Theme Index. Its component structure significantly focuses on core industrial metals, with the combined weight of the four major sectors—copper, rare earths, aluminum, and tungsten—reaching as high as 71.8%, which is higher than similar non-ferrous indices (Non-Ferrous Metals 58.5%, Sub-segment Non-Ferrous 57.8%). Additionally, it has lower holdings of precious metals like gold, resulting in higher purity and clearer direction. Furthermore, the combined management fee and custody fee are only 0.20% per year, placing it in the lowest fee tier among similar products.