Last week, there was a significant change in the ETF fund situation, with the first weekly net outflow in nearly a month. From the perspective of market performance, the photovoltaic sector has exploded, with multiple ETFs rising by over 15%, and new energy ETFs are also booming. The photovoltaic ETF saw the highest increase last week, with the technology growth sector performing well and remaining the focus of the market. However, the market trend has shifted from "science and technology innovation chips" to the fields of photovoltaics and new energy. The top performers on the weekly increase list are all photovoltaic and new energy ETFs. Specifically, Tianhong Zhongzheng Photovoltaic Industry ETF rose 17.87%, ranking first; The CSI Photovoltaic Industry ETFs under Guotai Fund, Yinhua Fund, Hua'an Fund, Puyin Ansheng Fund, Huitianfu Fund, and Huatai Bairui Fund have all increased by over 17%. Penghua Shanghai Science and Technology Innovation Board New Energy ETF, Boshi CSI New Energy ETF and other stocks also ranked among the top in terms of weekly gains. In addition, ETFs in industries such as rare earths, new materials, chemicals, media, and healthcare have generally risen. Small and medium-sized ETFs such as CSI 1000, CSI 2000, and CSI 500 have also seen gains. Regarding the rise of the photovoltaic sector, Huaxia Fund believes that on October 18th, the China Photovoltaic Industry Association released an article titled "Analysis of Current Costs of Photovoltaic Modules: Bidding below Cost is Suspected of Illegal", aimed at combating vicious low price competition in the industry. As internal competition in the industry gradually becomes more reasonable, price wars may ease, bringing a healthier development environment to the photovoltaic industry, especially benefiting enterprises with cost control and technological advantages. Since the significant market shift on September 24th, A-share ETFs have continued to receive net inflows of funds, with the highest net inflow exceeding 150 billion yuan in a week. However, the direction of ETF funds changed last week, with the first weekly net outflow of funds in nearly a month. As the Shanghai Composite Index approached 3300 points, some profit taking positions were taken, and about 50 billion yuan of funds chose to settle for safety. The Huatai Bairui Shanghai and Shenzhen 300 ETF, which previously received the most funds to increase positions, had a net outflow of 11.394 billion yuan last week. Jiashi CSI 300 ETF, E Fund Group CSI 300 ETF, and Huaxia CSI 300 ETF have all experienced varying degrees of net outflows of funds. Recently, science and technology innovation and ChiNext ETFs with prominent gains and a focus on technological growth styles have also experienced net outflows of funds. The net outflows of Huaxia SSE Sci Tech Innovation Board 50 component ETF and E Fund Growth Enterprise Board ETF were 7.51 billion yuan and 4.339 billion yuan, respectively. In addition, broad-based ETFs such as CSI 1000, SSE 50, and CSI 500 also experienced net outflows of funds. However, the CSI A500ETF is still highly sought after, with multiple CSI A500ETFs receiving net inflows of funds. In addition, ETFs in industries such as pharmaceuticals and photovoltaics have also received net inflows of funds. In terms of turnover rate, among larger ETFs, China Merchants CSI A500ETF and Jiashi SSE Sci Tech Innovation Board Chip ETF have higher turnover rates. ETFs have become an important growth factor for public funds, and it is worth noting that the disclosure of the third quarter reports of public funds has further widened the gap in the non commodity scale of public institutions. Non commodity funds such as E Fund, Huaxia Fund, Huatai Bairui Fund, Southern Fund, Guangfa Fund, and Jiashi Fund have experienced the largest growth in scale. Among them, the non commodity scale of E Fund increased by 236.771 billion yuan, Huaxia Fund increased by 231.026 billion yuan, and Huatai Bairui Fund increased by 204.774 billion yuan. These three fund companies' Shanghai and Shenzhen 300 ETFs received a large net inflow of funds in the third quarter, with their scale increasing by 122.893 billion yuan, 67.852 billion yuan, and 185.727 billion yuan respectively. In addition, the scale of Huaxia SSE 50 ETF and E Fund Growth Enterprise Market ETF increased by 52.028 billion yuan and 39.303 billion yuan respectively in the third quarter. Southern Fund and Jiashi Fund also have flagship broad-based ETFs. The scale of Southern CSI 500 ETF, Southern CSI 1000 ETF, and Jiashi CSI 300 ETF increased by 59.861 billion yuan, 50.021 billion yuan, and 46.029 billion yuan respectively in the third quarter. Looking ahead to the future, Guotai Fund believes that the market may present a wide range of fluctuations, and the strategy will shift from early defense to more actively seizing structural attack opportunities. After the confirmation of the policy bottom, market risk appetite has increased and liquidity has improved, but there is still a certain transmission process for the effectiveness of the policy in driving the economy. Therefore, in terms of overall prosperity and risk appetite improvement, there is a greater focus on technological growth styles, such as artificial intelligence, energy storage, lithium batteries, and other directions. Fengjing Capital believes that the current market risk appetite has increased, and the direction of fiscal easing has been basically established. The focus will be on the implementation of specific policies in the future. We can closely track policy changes and improvements in economic fundamentals, gradually increasing our positions. Based on the performance of listed companies in the third quarter report, we will focus on the direction of policy shift, which has greater room for improvement in the medium and long term, better industry structure, and cost-effective valuation. (New Society)