Market Shares:

• Food and Beverages: 45%
• Household and Personal Care Products: 30%
• Tobacco and Alcohol: 25%

TOP 3 Markets:

• China: 60%
• USA: 20%
• Europe: 15%

The China Universal Consumer Staples Index ETF (SZSE:159928) mainly invests in companies operating in the sectors of food, beverages, household and personal care products, as well as tobacco and alcohol. These industries are traditionally stable and benefit from the constant demand for consumer goods.

The largest market for this ETF is China itself, which is not surprising given the fund's focus on the Chinese market. The USA and Europe are also significant markets, as they represent large consumer goods markets and Chinese products are increasingly gaining popularity there.

Production Sites: Mainly in China

The China Universal Consumer Staples Index ETF (SZSE:159928) is an exchange-traded fund (ETF) and not a company that manufactures physical products. Therefore, the ETF itself does not produce any products. The ETF invests in companies in the consumer goods sector in China that predominantly produce their products in China.

Companies included in the ETF may have production facilities in various regions of China, depending on their respective industry and production requirements.

Strategy for Future Growth:

1. Diversification of the Portfolio: The China Universal Consumer Staples Index ETF aims to diversify its portfolio by including a broader range of consumer goods companies. This is intended to reduce dependence on individual sectors and increase stability.

2. Focus on Sustainable Investments: The ETF plans to increase investments in companies that follow sustainable practices. This aligns with the global trend towards more environmentally friendly and socially responsible investments.

3. Technological Integration: The use of advanced analytical tools and algorithms to optimize portfolio composition is another focus. This is intended to help identify market opportunities more quickly and manage risks more efficiently.

4. Expansion of Market Presence: The ETF aims to expand its presence in both domestic and international markets. This is expected to be achieved through strategic partnerships and the exploration of new distribution channels.

These strategies aim to maximize the growth potential of the ETF and make it more resilient to market fluctuations.

Main Imported Raw Materials for Consumer Goods in China:

• Soybeans: Main suppliers are Brazil and the USA.
• Palm Oil: Mainly imported from Indonesia and Malaysia.
• Sugar: Imported from Brazil and Thailand.

China imports a variety of raw materials and materials needed for the production of consumer goods. Soybeans are a significant raw material that is mainly imported from Brazil and the USA. These are mainly used for the production of cooking oil and animal feed.

Palm oil is another important imported commodity, mainly sourced from Indonesia and Malaysia. It is used in numerous consumer goods such as food and cosmetics.

Sugar is also imported in large quantities, with Brazil and Thailand being the main suppliers. Sugar is an essential component in the food industry.

These imports are crucial for the supply of the Chinese consumer goods industry and influence the pricing and availability of products in the domestic market.

Competitive Advantage: Moderate to Strong (estimated 2026)

The China Universal Consumer Staples Index ETF (SZSE:159928) invests in a diversified portfolio of companies in the daily consumer goods sector in China. The competitive advantage of this ETF arises from several factors:

1. Market Breadth and Diversification: The ETF includes a variety of leading companies in the consumer goods sector, which reduces the risk of individual company weaknesses and enables stable returns.

2. Economic Growth in China: The ongoing economic boom and the growing middle class in China provide a strong foundation for the demand for consumer goods, benefiting the ETF.

3. Strong Brand Presence: Many of the companies included in the ETF have established brands with high recognition value and customer loyalty, providing a sustainable competitive advantage.

Overall, the ETF offers a solid competitive advantage through its diversification and the strong positioning of the included companies in the growing Chinese market.

Institutional Investor Share: Estimated at around 60% (2026)

Insider Buys/Sells: No significant transactions reported (2026)

The China Universal Consumer Staples Index ETF attracts a high proportion of institutional investors due to its stable performance and focus on basic consumer goods. These investors appreciate the diversification and relative security that this ETF offers, especially in volatile market phases.

Insider transactions are generally less relevant for ETFs than for individual stocks, as ETFs represent a collection of assets and are not controlled by a single company. Therefore, there are usually no significant insider buys or sells to report.

Market share of China Universal Consumer Staples Index ETF (SZSE:159928): Estimated around 5% (2026)

Main competitors and their market shares:

1. ChinaAMC CSI 300 Index ETF: around 15%
2. E Fund CSI 300 Index ETF: around 12%
3. Harvest CSI 300 Index ETF: around 10%
4. Bosera CSI 300 Index ETF: around 8%
5. ICBC Credit Suisse CSI 300 Index ETF: around 7%

The China Universal Consumer Staples Index ETF (SZSE:159928) has a moderate market share compared to its competitors. The ETF specializes in daily consumer goods, giving it a certain stability and attractiveness in volatile market phases. This could be seen as a small moat, as daily consumer goods are generally less sensitive to economic cycles.

However, the larger ETFs tracking the broader CSI 300 Index have a significant advantage due to their diversification and greater liquidity. These factors provide them with a stronger moat, as they have broader market coverage and higher trading volumes, which is attractive to investors.

Overall, the China Universal Consumer Staples Index ETF has a specific advantage in its niche, but the larger ETFs offer a stronger moat through their broader market presence and diversification.

Growth of the consumer goods sector in China: 8% (estimated for 2026)

Long-term growth forecast: 6-7% annually (next 5 years)

The China Universal Consumer Staples Index ETF (SZSE:159928) provides investors with access to a diversified portfolio of companies in the daily consumer goods sector in China. The consumer goods sector in China is showing robust growth, supported by the increasing purchasing power of the middle class and urbanization.

Long-term, it is expected that the sector will continue to benefit from the increasing demand for high-quality consumer goods. The Chinese government is also promoting domestic consumption, which could provide additional growth impetus to the sector.

However, investors should keep an eye on geopolitical risks and regulatory changes in China, as these could affect market conditions. Overall, the ETF could be an attractive option for investors looking to benefit from the long-term growth prospects of the Chinese consumer goods market.

Dividend Yield: 2.5% (estimated for 2026)
Dividend History: Regular payouts since 2018

The China Universal Consumer Staples Index ETF (SZSE:159928) has regularly distributed dividends in recent years. The estimated dividend yield for the year 2026 is around 2.5%. These payouts are relatively reliable as the ETF invests in companies that typically generate stable and predictable cash flows.

The reliability of dividend payments is supported by the stable performance of the consumer goods sector in China. This sector demonstrates consistent demand that is less susceptible to economic fluctuations. Analysts expect the ETF to maintain a reliable dividend policy in the coming years as well.