Energy security as the main theme, how to choose among the three ETFs?

Currently, the new energy industry is shifting from a vision of green development to becoming the core investment focus for ensuring energy security. The market has product-tracking new energy indices, including the China Securities New Energy Index, the ChiNext New Energy Index, and the STAR Market New Energy Index. All three belong to the new energy sector and exhibit clear differentiated characteristics in terms of industry coverage, market capitalization style, and volatility elasticity.

From the perspective of industry coverage, the China Securities New Energy Index excels in “comprehensiveness,” selecting 80 companies across the lithium battery, energy storage, photovoltaic, wind power, and other industrial chains, widely covering upstream, midstream, and downstream, making it a comprehensive representative of the new energy industry; the ChiNext New Energy Index focuses on 50 companies listed on the ChiNext board, with an industrial focus on mature sectors such as lithium batteries and photovoltaics, and its constituent stocks are mostly leaders in various sub-sectors; the STAR Market New Energy Index selects 50 companies in fields such as photovoltaics and wind power from the STAR Market, placing greater emphasis on next-generation battery technologies, new photovoltaic materials, smart grids, and other cutting-edge “hard tech,” with distinct technology-driven characteristics.

In terms of market capitalization style, the China Securities New Energy Index has a balanced market capitalization distribution, taking into account both leaders and growth companies, with trends aligning with the overall industry prosperity; the ChiNext New Energy Index constituent stocks generally have a larger market capitalization, with weight highly concentrated in a few globally leading lithium battery and photovoltaic giants, showing both stability and aggressiveness during upward cycles; the STAR Market New Energy Index primarily consists of small and medium market capitalization “hard tech” growth companies, with ample liquidity and stronger elasticity when risk appetite increases.

Top ten constituent stocks and their weights for the indices

Note: Data source is the Index Express mini program, data as of February 27, 2026, from left to right are the top ten constituent stocks of the China Securities New Energy, ChiNext New Energy, and STAR Market New Energy Indices.

From the perspective of volatility elasticity, the three indices show significant differences in risk-return characteristics. The China Securities New Energy Index has broad coverage and diversified returns, with an annualized volatility of less than 30% over the past year, relatively low, making it a core tool for long-term exposure to new energy beta returns; the ChiNext New Energy Index relies on leading profits and market share expansion, performing well during industrial prosperity, but is easily affected by the valuation fluctuations of leaders during adjustment periods, with an annualized volatility of about 33% over the past year; the STAR Market New Energy Index focuses on cutting-edge technologies, showing strong performance explosiveness but high uncertainty, with an annualized volatility of 35% over the past year, making it more suitable for investors with a high-risk tolerance to speculate on technological iteration opportunities.

Overall, the three new energy indices share the long-term investment focus on energy security, but each has its own positioning. If investors want to capture overall opportunities in new energy without a clear sub-sector direction, the China Securities New Energy Index is preferable; during periods when the market’s main line is clear and the advantages of leaders are strengthened, the ChiNext New Energy Index is more suitable for prosperity phase operations; if risk appetite is higher and there is optimism about the benefits of technological innovation, the high growth potential of the STAR Market New Energy Index is more prominent. New energy ETFs such as E Fund (516090), ChiNext New Energy ETF E Fund (159009), and STAR Market New Energy ETF E Fund (589960) are seizing opportunities.

A table to understand the core differences of the three indices

Risk Warning: Funds carry risks, and investment requires caution.