Resonance of China-US power grid equipment ETF market trends

A couple of days ago, I wrote an introduction about the upgrade of the power grid equipment index. "After All the Changes, the Hang Seng A-Share Power Grid Equipment Index Has Finally Been Upgraded"

Regarding power grid equipment, why such a seemingly niche sector has managed to achieve remarkable performance this year, we have covered it in detail with multiple pieces of information on the platform. You can check them out.

Actually, there are also specialized ETFs related to power grid equipment in the U.S., such as GRID. The ticker is easy to remember—it's the English name for "grid," like our China's major state-owned power grid company, State Grid. I compared the GRID ETF with two Chinese power grid equipment ETFs, and overall, this year's returns are quite similar.

However, since the Power Grid Equipment ETF (15926) does not include New Ease, while the Power Grid ETF (561380) has a relatively high weighting of New Ease in its holdings, this year's gains have been higher, which is somewhat distorted.

After the article "After All the Changes, the Hang Seng A-Share Power Grid Equipment Index Has Finally Been Upgraded" was published, some people asked why the Hang Seng A-Share Power Grid Equipment ETF includes New Ease with a relatively high weighting. My reply at the time was that it seemed slightly inappropriate but not entirely unreasonable, because: the development of digitalized power grids has made AI computing power closely related to power intelligence. I think it's at least more directly relevant than stocks of upstream resource materials.

Currently, the Biaojiu Quantitative Index Enhancement Portfolio has also allocated the Hang Seng A-Share Power Grid Equipment ETF feeder fund, contributing significantly to the net value of the portfolio yesterday. Additionally, the non-ferrous metals sector performed well yesterday. In my view, the logic behind non-ferrous metals and power grid equipment is the same—reflecting the global shortage of computing power, leading to power shortages and a lack of power grid equipment.

(Not investment advice)

$Fisr Trust Nasdaq Clean Edge Smart Grid Infra(GRID.US) $ChinaAMC CSI Grid Equipment Thematic ETF(159326.SZ) $Guotai Hang Seng China A Power Grid Equipment ETF(561380.SH)