Pro-cyclical ETFs attract a large amount of funds, fund managers are positioning in three major dimensions to layout the main theme of "anti-insulation".

Recently, the policy of "anti-internal competition" has been strongly enforced, driving the A-share market to continue to rally in related sectors such as steel, cement, photovoltaics, and new energy vehicles. According to Wind data, as of July 25th, the steel ETF has risen by over 18% in the past month, while the photovoltaic ETF and coal ETF have also risen by over 10%. Behind this, it reflects the market's positive expectations for policy guidance to optimize industry competition and improve supply-demand relationships. Many fund managers believe that the current theme of "anti-internal competition" investment is experiencing a crucial turning point - transitioning from initial policy expectations to gradually shifting to a phase of fundamental verification. Whether the policy can be effectively implemented and how supply and demand can be substantially improved will become the core factors determining the depth and breadth of the market.