Energy security prioritizes electricity; what are the indices related to "electricity"?

Currently, profound changes in the geopolitical landscape have elevated energy security to a national strategic level. The escalation of Middle Eastern geopolitical risks has substantially damaged numerous oil and gas facilities and significantly depleted strategic reserves in multiple countries. Whether it is the subsequent need for replenishment or the years required for supply recovery, these factors will undoubtedly intensify global energy tensions in the future and accelerate countries’ energy substitution processes.

Energy security issues include sufficient energy supply and a complete energy system. Achieving these goals requires stronger power generation capacity, more comprehensive transmission infrastructure, higher-quality energy storage systems, and more.

How can investors efficiently grasp this main theme? They can directly choose ETF products focused on key segments to achieve efficient allocation. For example:

1. 【Power Generation】 CSI Green Power Index focusing on power generation links;

2. 【Transmission】 Hang Seng A-shares Power Grid Equipment Theme Index focusing on the power grid industry chain;

3. 【Energy Storage】 Guozheng New Energy Battery Index focusing on core energy storage links.

These three indices focus on the three core segments of power, helping investors seize investment opportunities in energy security.

What are the differences among these indices?

A table to understand the core differences among the three indices

Data sources: Wind, iFind, as of April 1, 2026, valuation levels using rolling P/E ratios

All three indices are “special forces” focusing on their respective industry chains.

【Low Valuation, Large Potential】 E Fund Green Power ETF (562960, 019058/019059)

The CSI Green Power Index selects leading companies involved in wind, solar, and hydroelectric power, as well as thermal and nuclear power companies transitioning into these fields, totaling 50 core constituents.

Feature 1: Low Valuation. As of April 1, 2026, the CSI Green Power Index’s rolling P/E ratio is only 18.6x, placing it at the 43rd percentile over the past five years, making it a relatively lower valuation within the energy security theme. The last peak valuation also occurred during Europe’s energy crisis in 2022. The current Middle Eastern geopolitical conflict’s impact is even greater, so amid global turmoil and rising energy crisis risks, its low valuation is a major highlight.

Feature 2: Represents “Computing and Power Synergy.” For the power industry, this synergy transforms China’s advantages in electricity into AI advantages, turning electrical energy into computing power for overseas expansion. In other words, in the AI era, electricity has become not only a fundamental resource but also a valuable asset capable of “monetization” abroad. Under this grand narrative, the most benefited assets are leading power generation companies, which is the core focus of the Green Power ETF.

【High Prosperity, New HALO】 E Fund Energy Storage Battery ETF (159566, 021033/021034)

The Energy Storage Battery ETF tracks the Guozheng New Energy Battery Index, selecting 50 leading companies in the energy storage battery sector to represent industry prosperity.

Feature 1: High Prosperity. After some provinces introduced supportive policies for energy storage in 2025, triggering a wave of installed capacity, the national supportive policies issued earlier this year further ignited enthusiasm for industry development. Coupled with global energy issues caused by war, countries like Europe and Australia have introduced additional policies for residential energy storage, boosting exports of related Chinese industry chains beyond expectations. Feedback from industry insiders indicates that production in April further increased compared to the high activity in March.

Feature 2: The emerging “HALO” assets gaining attention. Compared to familiar HALO assets like materials, railways, and heavy equipment (heavy assets, low淘汰), energy storage batteries are becoming the new standard in the power industry as “stabilizers” in the new energy era. As long-term assets with heavy assets and low淘汰 (operational life of 10-20 years), energy storage is increasingly regarded as a new “HALO” asset attracting widespread capital attention.

【High Elasticity, New Overseas Expansion】 State Grid Equipment ETF (560390)

The State Grid Equipment ETF tracks the Hang Seng A-shares Power Grid Equipment Index, selecting 50 core constituents with over 40% revenue from related sub-industries, representing the beta of the power grid industry.

Feature 1: New Overseas Expansion. As a critical sector related to electricity safety, the power grid industry has traditionally focused on the domestic market, making overseas expansion difficult. Currently, due to global power shortages and aging Western grid infrastructure, China’s power grid equipment, with its advanced technology and cost advantages, is gaining favor and entering the global market. This shift indicates a significant expansion of industry market space. As China’s market share in global power grid equipment continues to grow, the industry’s ceiling will rise rapidly, offering limitless future growth potential.

Feature 2: High Elasticity. The industry chain is experiencing a substantial market expansion, leading to a collective valuation increase. Since there was little prior overseas narrative, historical valuation references are no longer relevant. In this context of high industry growth, open long-term space, and no historical valuation benchmarks, the investment elasticity of the sector will also significantly increase.

In summary, investing in the energy security industry chain can focus on various segments within this narrative, selecting “special force” products in each niche.

For those seeking low valuation and large potential, choose the Green Power ETF (562960, 019058/019059), which bundles “power generation” leaders; for those seeking high prosperity, choose the Energy Storage Battery ETF (159566, 021033/021034), to position for the new “HALO” assets resonating domestically and internationally; for those seeking high elasticity, choose the Power Grid Equipment ETF (560390), capturing another high-quality Chinese asset expanding globally.

Top ten constituent stocks and their weights in the index

Note: Data sources: Wind, iFind, as of March 31, 2026