Free Cash Flow Index Demonstrates Significant Alpha Returns; Largest Free Cash Flow ETF in Its Category (159201) Continues to "Attract Capital"

SadMoneyMeow · 2026-03-18T05:59:49+00:00

On March 18th, the A-share market showed divergent performance, with the Free Cash Flow Index experiencing volatile adjustments, declining approximately 0.85%. Component stocks like Avantech led gains. The Free Cash Flow ETF (159201) has recently attracted over 1.8 billion yuan in inflows, offering attractive allocation value and consistently outperforming the market. Both the fund management fee and custodian fee are the lowest in the market, benefiting investors.

SadMoneyMeow

2026-03-18 05:59:49

Abstract generation in progress

On March 18, the A-share market showed mixed performance. The China Securities Free Cash Flow Index fluctuated and adjusted, falling about 0.85% during the trading session. Leading the gains were component stocks such as Absen, Sanyuan Guojian, Yaxiang Integration, and Liaoning Energy. Regarding related ETFs, the largest free cash flow ETF (159201) in the same category attracted over 1.8 billion yuan in net inflows over the past five trading days, indicating a strong capital chase characteristic.

Ping An Securities pointed out that the Free Cash Flow Index has high allocation value and has recently outperformed the market and growth indices multiple times: 1) The Free Cash Flow Index generally aligns with the dividend style in favorable periods, often outperforming the dividend index stably, except during the early stage of style switching from value to growth when it may underperform. 2) The index provides significant alpha returns, with industry allocation and timing ability being key sources of its excess returns.

The Free Cash Flow ETF (159201) and its linked funds (A: 023917; C: 023918) closely track the China Securities Free Cash Flow Index. Its constituent stocks broadly cover sectors such as oil and petrochemicals, non-ferrous metals, electrical equipment, and transportation. These industries are typical “heavy asset, low淘汰” HALO fields, with HALO assets accounting for up to 57%. The fund management fee is 0.15% annually, and the custodial fee is 0.05% annually, both among the lowest market rates, maximizing benefits for investors.

Daily Economic News

Editor: He Chong

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