Since March, cumulative outperformance exceeds 7%, banks' defensive value stands out

On the afternoon of March 20, the Shanghai Composite Index declined again, while the banking sector defied the trend and rose. Yunnan Rural Commercial Bank gained over 2%, CITIC Bank, Xiamen Bank, and Ningbo Bank rose over 1%. The intra-day price of the 100-billion top-stream bank ETF (512800) is now up 0.25%. Since March, the CSI Bank Index has increased by a total of 3.71%, while the Shanghai Composite Index has fallen by 3.76%, meaning banks have outperformed by 7.46%, highlighting their counter-market defensive role.

Currently, the risk-free interest rate continues to decline, with the average dividend yield of bank stocks exceeding 4.6%. Against the backdrop of an asset shortage, high-dividend defensive value is being amplified; meanwhile, market expectations of domestic rate cuts are heating up, marginally easing the pressure on interest spreads, attracting long-term funds such as insurance and social security to flow in continuously.

Amid increased volatility in previously popular sectors like technology growth, gold, and non-ferrous metals, funds are shifting from high-valuation, high-volatility sectors to bank stocks with low valuation and high safety margins for risk aversion. Coupled with the institutional rebalancing window at the end of the first quarter, banks, as a key sector, have become a core allocation focus for funds.

Feng Chengcheng, fund manager of the bank ETF (512800), stated that whether from the perspective of fundamental certainty and stability, dividend value, or defensive style, the banking sector has positive triggers. In the context of declining market risk appetite, bank stocks, which are in a period of earnings recovery, are a good allocation choice.

Bank ETF (512800) and its associated funds (Class A: 240019; Class C: 006697) passively track the CSI Bank Index, which includes 42 listed banks in A-shares, making it an efficient investment tool for tracking the overall banking sector trend. The latest size of the bank ETF (512800) exceeds 12 billion yuan, with an average daily trading volume since 2025 of over 800 million yuan, making it the largest and most liquid among the 10 bank ETFs in A-shares.

Data source: Shanghai and Shenzhen Stock Exchanges, etc. The CSI Bank Index’s performance over the past five full years is: 2025, +6.79%; 2024, +34.71%; 2023, -7.27%; 2022, -8.78%; 2021, -4.41%. The composition of the index’s constituent stocks is adjusted periodically according to the index rules. Past performance does not predict future results.

ETF fee-related notes: When investors subscribe or redeem fund units, the subscription/redemption agents may charge a commission of up to 0.5%, which includes fees charged by stock exchanges, registrars, etc. Fee details for associated funds: Huabao CSI Bank ETF (A class) subscription fee (front-end) is 1,000 yuan per transaction for amounts of 2 million yuan or more; 0.6% for 1–2 million yuan; 1% for less than 1 million yuan. Redemption fee is 1.5% if held less than 7 days; 0.5% for 7–180 days; 0.25% for 180 days to 1 year; 0% for over 1 year. No sales service fee is charged. Huabao CSI Bank ETF (C class) does not charge a subscription fee; redemption fee is 1.5% if held less than 7 days, 0% otherwise; sales service fee is 0.4%.

Risk reminder: The bank ETF passively tracks the CSI Bank Index, which was launched on December 31, 2004, and published on July 15, 2013. The index’s composition is adjusted periodically according to the index rules. Past performance does not predict future results. The constituent stocks shown are for display purposes only; individual stock descriptions are not investment advice and do not represent holdings or trading activity of any fund managed by the manager. The risk level of this fund, as assessed by the fund manager, is R3—medium risk, suitable for balanced (C3) and above investors. All information in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any form of statements) is for reference only. Investors are responsible for their own investment decisions. The opinions, analysis, and forecasts in this article do not constitute investment advice and the author is not responsible for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results, and the performance of other funds managed by the fund manager does not guarantee the performance of any specific fund. Please invest cautiously.