The Aerospace and Defense ETF Tianhong (159241) has a turnover rate of over 7%, the highest among funds with the same underlying, with its valuation below the past year’s 85% for more than 85% of the time.

Economic Daily News Editor: Xiao Ruidong

On April 7, the two markets saw narrow-range fluctuations, with aviation and aerospace concepts falling. For related ETFs, the aviation and aerospace ETF Tianhong (159241) tracking the underlying index closed down 0.95%, with subscription volume reaching 2 million units, trading value totaling RMB 71.9684 million, turnover rate at 7.57%, and ranking first among peers. Among constituent stocks, Guangzhou Joint Airlines, Aero Engine Power, and others fell by more than 5%, while many others such as Guobo Electronics, China Satellite, and Changying Tong also declined.

Worth noting is that, according to Wind, the aviation and aerospace ETF Tianhong (159241) has achieved consecutive “capital inflows” over the past three trading days (April 1, 2026 to April 3, 2026). Over the most recent 30 trading days, cumulative net capital inflows totaled RMB 136 million. As of April 3, 2026, the fund’s latest size was RMB 958 million.

The aviation and aerospace ETF Tianhong (159241) closely tracks the National Securities (Guozheng) Aerospace Index. Over the past year, the index has risen by 29.46%. Its industry allocation mainly includes Aerospace Equipment II (54.18%), Military Industry Electronics II (20.57%), and Aerospace Equipment II (13.42%), among others. The top five constituent stocks are Aero Engine Power, Kuaichuang Technology, Aerospace Electronics, China Satellite, and AVIC Shenyang Aircraft.

Data from the past year shows that the National Securities Aerospace Index’s PE-TTM is 115.37x. The current valuation is at the 14.46th percentile over the past year, lower than the 85.54% of time over the past year, and it already offers a certain valuation-to-price advantage.

On the news front: ① According to Caixin (Time Finance), on April 3 the White House released its FY2027 budget proposal, with defense spending requests of $1.5 trillion, up 44% from the previous figure. This includes a shipbuilding budget of $65.8 billion and ammunition reserves and defense industry base spending of $350 billion; ② Domestic commercial space activities are coming in with a dense cluster of milestones. On March 30, Galaxy Space started A-share IPO counseling and filing procedures. On the same day, the first launch of the Yijian No. 2—Yao Yi transport rocket was successfully completed, placing three satellites into their planned orbits; ③ According to the Ministry of Industry and Information Technology, the deputy director of the Information Communication Development Department of the Ministry emphasized at the 2026 Space Computing Power Industry Conference on April 3 that efforts should be made to solidly promote the development of the space computing power industry; ④ On April 2, SpaceX submitted an IPO application to the U.S. Securities and Exchange Commission via a confidential filing. The target fundraise is about $75 billion. In addition, the conflict between Iran and the U.S. continues, and passage through the Strait of Hormuz is disrupted.

Economic Information Daily