Which ETFs are Long-Term Winners in Emerging Industries?
Recently, the A-share market seems to be losing some of its steam, a fundamental reason being the lack of midline popular varieties recognized by the market, such as those seen in the past few years with baijiu, new energy, and AI.
However, four emerging industries are gradually approaching and have the potential to disrupt our investment landscape within half a year to a year. Let's take a look together!
Intelligent Driving: The Lifeline of Automakers
Related ETFs: Intelligent Vehicles, Consumer Electronics, Artificial Intelligence (Computer), etc.
Whether a car has advanced intelligent driving capabilities is akin to whether a phone is smart; automakers without this feature within three years will not be able to release new vehicles.
Intelligent driving involves a wide range of industries, almost covering all high-end electronics and software and hardware, but it can generally be considered another mainstream consumer electronics product after smartphones.
Of course, as long as there are the words "intelligence," it is inevitably inseparable from the hard technology industry represented by artificial intelligence.
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Compared to other emerging industries, intelligent driving is somewhat more mature; for example, the performance of Desay SV has already well demonstrated growth. However, investing with ETFs certainly comes with challenges.
Take the intelligent vehicle ETF, for instance; it includes a rather broad range of listed companies, and many real industry leaders are not included in the constituent stocks because they are not listed. For example, why is Great Wall Motor the only selected whole vehicle company? This is obviously unreasonable.
However, there are two expectations: first, the China Securities Index Co., Ltd. will continuously optimize the index compilation; second, the consumer electronics, automobile manufacturing, and AI companies that have been selected will indeed benefit from the industry development in the long term.
There is still a gap from advanced intelligent driving, which is also a potential space for growth!
Solid-State Battery: An Opportunity for Leading Companies to Leap Forward Again
Related ETFs: (Lithium) Battery, New Energy Vehicle Series, Rare Metals, etc.
Electric vehicles equipped with solid-state batteries can easily outperform traditional lithium battery cars in terms of range, directly leading to an industrial replacement, much like tanks overwhelming trucks.
The greatest significance, however, is that it may provide an opportunity for leading companies like CATL and BYD to eliminate smaller competitors and achieve a second leap forward. Therefore, the most likely beneficiaries may still be those ETFs related to new energy vehicles.
The core technologies such as electrode materials and electrolytes for solid-state batteries are too difficult for small and medium lithium battery plants to produce good products. Even if a small company manages to produce them, it is hard to control costs, which is where the strong, core capabilities of large enterprises come into play.
With the survival of the fittest, the concentration of industry profits increases, and it seems not a dream for CATL to drive the relaunch of the ChiNext board.
Of course, there is a not-so-big possibility: a small company suddenly succeeds and knocks CATL down, which is not impossible!
Humanoid Robots: An Essential Companion Within a Few Years
Related ETFs: Robotics, Machine Tools (Mother Machines), Artificial Intelligence, etc.
The robots of today may not be the same as what was previously mentioned; here, we specifically refer to humanoid robots.
These are high-end intelligent home appliances, equipment, or even companions with "embodied intelligence," capable of learning autonomously and working on behalf of humans.
Humanoid robots involve a significant amount of precision manufacturing and rich intelligence. Some specialized robots that have been introduced so far are merely at the initial stage, lacking the enhancement of "embodied intelligence," and thus not up to par.
The current robot ETFs also have their shortcomings, such as the absence of some leading companies in the A-share market, which mainly focus on specialized and industrial robots, machine tools, precision manufacturing, etc. It is expected that with the development of the industry, there will be a robot index covering Shanghai, Hong Kong, and Shenzhen.
As Tesla's humanoid robot approaches its market launch, the sense of urgency for domestic companies has greatly increased. But even Tesla is likely to be inseparable from our industrial chain!
Low-Altitude Economy: A New Quality of Productivity Worth N Trillions
Strongly Related Varieties: Missing
Resonant ETFs: Robotics, Central Enterprise Technology (Military), Machine Tools (Industrial Mother Machines), Artificial Intelligence, etc.
In fact, since the beginning of this year, the policy support for the low-altitude economy has been astonishing, given the industry's prospects of being worth several trillion. Overseas estimates suggest that for low-altitude aircraft alone, the growth expectation over 10 years is 30 times.
The connotation of the low-altitude economy is extremely rich, and we can roughly understand it as a new track comparable to new energy vehicles, involving aviation manufacturing, precision machinery, materials, communications, artificial intelligence, and so on.
Once it develops, it has the potential to drive both horizontal and vertical industrial chains and is capable of stimulating GDP growth.
At present, the low-altitude economy is still in the stage of speculation on妖股. True industry leaders such as DJI are not listed on the A-shares.
However, it is obvious that the industries benefiting from the long-term low-altitude economy are very broad, and all the connotations of new quality productivity are directions that benefit.
It is estimated that the China Securities Index Co., Ltd. is developing a low-altitude economy index, or it may wait for the industry pattern to become clearer before possibly issuing an index covering Shanghai, Hong Kong, and Shenzhen.
In terms of ETFs, those with a substantial presence in the two airlines, such as Central Enterprise Technology and high-end equipment, benefit more on paper, while industries related to machinery manufacturing and artificial intelligence are also long-term beneficiaries.
Artificial Intelligence again? Yes, those flying in the sky are all intelligent autonomous flights!
From the above four emerging industries, we can easily identify some patterns.
These industries have all received support from national industry policies and have clear basic routes in terms of products and business models. Next, it is about breaking through bottlenecks in materials, costs, and product strength through collaboration and upgrading of advanced manufacturing. Apart from solid-state batteries, they all cannot do without the "soul" of intelligence.
All of this is also in harmony with the connotation of new quality productivity.
From the perspective of ETFs, in addition to industry ETFs, specialized and niche equipment manufacturing ETFs such as Robotics (Machine Tools, Mother Machines), Intelligent Manufacturing, Central Enterprise Technology, High-End Equipment, Rare Metals, etc., are expected to benefit in the long term. In the broad AI field, we believe it adds medium and long-term logic to related ETFs, making long-term and regular investments reasonable.
Well, that's a simple summary from an outsider. I hope everyone won't be disturbed by short-term stock games affecting their value emotions. With such a large China, are there no long-term investment-worthy things!