Geopolitical conflicts intensify, and the Value ETF E Fund's value allocation has attracted much attention.

The Middle East war has extremely low visibility, and it currently appears it will continue for some time, thereby further suppressing risk assets. Combined with the marginal weakening of trading sentiment in China’s A-share market, the value style is expected to have the upper hand.

Value ETF E Fund tracks the CSI Guozheng Value 100 Index. Currently, its dividend yield is 5%, higher than the CSI Dividend benchmark; its long-term performance is excellent and outperforms dividend-style indices. Since 2013, the index’s annualized return has reached 18%, with a Sharpe ratio of 0.9. It is well suited as a steady core holding.

The index focuses on deep value, allocating “high dividend and high free cash flow” companies at low valuations. The index rebalances each quarter, always focusing on undervalued assets. When it re-sampled in March, the weight of non-ferrous metals was cut from 10% to within 1%, which helps better avoid the recent sharp drop in non-ferrous metals; it increased allocations to undervalued targets in sectors such as banking and coal, effectively achieving buy low/sell high.

Value ETF E Fund (159263, fund links A/C: 025497 / 025498) lets you build a one-click allocation to undervalued, high-quality assets in the market.