On August 12, the A-share market showed mixed performance, with the free cash flow strategy leading the gains. As of 9:52 AM, the CSI Free Cash Flow Index rose by 0.66%, with constituent stocks such as Xinpeng Co., Ltd., Chongqing Department Store, and SAIC Motor leading the gains.

It is reported that the "buyback wave" in the A-share market persists. Wind data shows that, based on announcement dates, nearly 400 A-share companies have disclosed buyback progress since July, involving over 60 billion yuan. Liang Yufeng, Chief Strategy Officer of Emoney, analyzed that the following two types of listed companies are suitable for buybacks. First, those with ample "excess cash," i.e., funds beyond operational needs. For example, companies with large excess cash but low returns could significantly improve their ROE and market capitalization by repurchasing shares. Second, companies with stable operations and steady free cash flow, such as leading consumer goods firms.

The Free Cash Flow ETF (159201) focuses on industry leaders with abundant free cash flow, covering high-barrier sectors like home appliances, automobiles, non-ferrous metals, power equipment, and petroleum & petrochemicals. Its significant sector diversification effectively mitigatesingle-industry volatility risks, making it an ideal choice for core portfolio allocation. The fund's annual management fee is 0.15%, and the annual custody fee is 0.05%, both the lowest in the market.

The Cash Flow 500 ETF (560120) targets sectors such as non-ferrous metals, basic chemicals, transportation, machinery equipment, and pharmaceuticals, combining growth and quality with a small- to mid-cap style. Additionally, the Cash Flow 500 ETF undergoes quarterly evaluations and profit distributions, with payouts arranged when fund dividend conditions are met.