In a volatile market, the strategy of focusing on cash flow value allocation is key. The Guotai (159399) Cash Flow ETF has seen a net inflow of over 800 million yuan in the past 10 days.

In a choppy market, a cash-flow-based strategy helps capture allocation value. From a capital flows perspective, the Cash Flow ETF by Cathay (159399) saw net inflows of more than 800 million yuan over the past 10 days.

Relevant institutions said that the sector differentiation between the Cash Flow Index and the Dividend/Bonus (Redemption) Index enables it to deliver significant excess returns during both economic recovery and normal operating periods. Considering a cash-flow strategy, cash flow is the “mother of dividends”—it helps avoid high-dividend traps and has both offensive and defensive strengths. From a long-term perspective, the Cash Flow Index may still be more advantageous than dividend-type indices. In addition, the FTSE Cash Flow Index also has multiple advantages for mid- to long-term allocation, including multi-factor stock selection (e.g., adding volatility and growth-ability screening), focusing on large-cap stocks, quarterly rebalancing that naturally supports “high-sell/low-buy,” and monthly assessable dividend evaluations.

Investors may consider the Cathay Cash Flow ETF (159399). Judging from market performance, its underlying index has shown overall results similar to the CNI Cash Flow, CSI Cash Flow, and 800 Cash Flow since 2014. From 2014 to the end of 2025, the underlying index’s annualized return was 19.21%, while the CSI Dividend Index’s annualized return over the same period was 12.74%. The underlying index of the Cathay Cash Flow ETF (159399) focuses on large and mid-cap stocks; the proportion of central state-owned enterprises and local state-owned enterprises in the underlying index is higher than that of comparable cash-flow indices. It also offers assessable dividends month by month. Interested investors may continue to monitor it.

Risk warning: Mentioning individual stocks is only for industry event analysis and does not constitute any recommendation or investment advice for any stock. Short-term rises and falls in indices are for reference only and do not represent their future performance, nor do they constitute any commitment or guarantee regarding fund performance. Viewpoints may adjust as market conditions change, and do not constitute investment advice or commitments. Different funds have different risk–return characteristics. Investors are kindly reminded to read the fund’s legal documents carefully, fully understand product features, risk levels, and the principles of profit distribution, choose products that match their own risk tolerance, and invest prudently. For fund fee rates, please refer to the legal documents.

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