On Monday, A-shares experienced a volume contraction with a pullback. Defensive sectors such as consumer discretionary and insurance moved against the trend, but the most interesting development was the activity in ETFs—Shanghai Stock Exchange ETFs have been net subscribed for three consecutive days, with 544 million yuan flowing in on a single day. Although the amount isn't huge, the signal is very clear: funds are repositioning.

**The Divergence of Broad Market Index ETFs**

Here, small and mid-cap growth index ETFs have become favorites, while large-cap blue-chip ETFs are being redeemed. The data is straightforward—

In terms of subscriptions, the CSI A500 Index ETF leads with a net subscription of 1.333 billion yuan, followed by the STAR 50 with 861 million yuan. The Sci-Tech Innovation 50, Sci-Tech Innovation 100, and CSI 1000 also saw small net subscriptions—ranging from tens of millions to a few hundred million yuan—but the direction is consistent.

On the redemption side? The SSE 300 Index ETF was redeemed for 1.18 billion yuan, and blue-chip ETFs like the SSE 50 and SSE Composite Index are also being gradually redeemed. This is a typical "big stocks are being sold, small stocks are being bought" pattern.

**Sector ETF Hotspot Rotation**

The most popular sectors are high-growth tracks, dividend strategies, and Hong Kong stock technology.

The Sci-Tech Innovation Chip Index ETF had a net subscription of 942 million yuan, making it the top sector-themed ETF in terms of subscriptions. The Sci-Tech Innovation AI and Semiconductor ETFs also increased their holdings, with amounts of 149 million and 104 million yuan respectively. Clearly, the enthusiasm for tech growth remains strong.

On the defensive side, the Low Volatility Dividend Index ETF received 359 million yuan in subscriptions, and the S&P China A-shares Large Cap Dividend Low Volatility ETF also subscribed 101 million yuan. This indicates that in a volatile market, some funds are seeking stable dividend income.

In Hong Kong stocks, ETFs related to internet and technology are attracting capital. The Hong Kong Stock Connect Internet Index ETF subscribed 245 million yuan, and the Hang Seng Hong Kong Stock Connect China Tech Index ETF subscribed 128 million yuan. The innovative drug sector is also not being neglected, with the Hong Kong Stock Connect Innovative Drugs ETF, Hang Seng Hong Kong Stock Connect Innovative Drugs Select ETF, and CS Innovation Drug Index ETF subscribing 121 million, 96 million, and 88 million yuan respectively. The focus on growth and pharmaceuticals in Hong Kong stocks is clearly attracting funds.

On the redemption side, the situation is different. The securities firm index ETF had a net redemption of 941 million yuan, the largest among industry-themed ETFs that day, indicating significant selling in the brokerage sector. The military sector was also hit hard, with the leading military ETF, CSI Military, and CSI Defense Index ETF being redeemed for 378 million, 360 million, and 311 million yuan respectively, with substantial redemption volumes.

Interestingly, while the consumer sector rose against the trend that day, specific consumer ETFs were actually redeemed. The CSI Alcohol and Sub-sector Food Index ETFs were sold off for 416 million and 80 million yuan respectively. Additionally, ETFs tracking banks, real estate, and rare earths also experienced varying degrees of redemption.

**Funds Speak Through ETFs**

Overall, this is a typical case of structural rotation—large-cap blue chips are being abandoned, while small and mid-cap growth, high-growth tech, dividend strategies, and core Hong Kong stock sectors are becoming the focus of capital. In a volatile market environment, funds are clearly being selective. Which sectors can continue to attract inflows, and which are experiencing phased outflows? These micro-level data may better reflect the true market sentiment than the overall index movements.