Fund holdings in food and beverages drop to historic lows, highlighting the long-term allocation value of the sector.

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Judging by the holdings of actively managed equity funds at the end of the first quarter of 2026, fund positions in the food and beverage industry have fallen to around the level of 2015. Overall, the sector is at a relatively low historical percentile. Among institutional top heavy-holding stocks, only Kweichow Moutai ranks in the top twenty, placing 4th. In consumer staples, Anjoy Foods has entered the top ten stocks by market value of heavy holdings.

China Securities (CITIC Securities) says: The overall fund holdings in the food and beverage industry are currently at a relatively low historical percentile. After a period of continuous adjustments in the early stage, the food and beverage sector has entered a bottoming-out range. From the performance shown in quarterly reports, the decline rate for Baijiu in the first quarter of 2026 narrowed; performance in mass-market products bottomed out and began to recover; and some leading companies in certain sub-industries have delivered strong results. The sector’s long-term allocation cost-effectiveness has become particularly prominent.

On the left, watch related ETFs when prices dip: Huaxia Food ETF (159151.SZ) and Huaxia Food & Beverage ETF (515170.SH). Among them, Huaxia Food ETF (159151.SZ) focuses on leading mass-market food companies (Yili, Haitian Flavoring, Anjoy Foods, etc.) and excludes Baijiu and beer. Huaxia Food & Beverage ETF (515170.SH) emphasizes leading Baijiu companies in first- and second-tier cities, while also taking into account the mass-market food segment. You can also participate in off-exchange systematic investing: Huaxia Food & Beverage ETF Connect C (013126.OF).

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