2025 Battery Track Fund "Three Major Schools" Research

Introduction: For technology believers (who firmly believe that solid-state batteries and energy storage are the future growth points), the first choice is GF Carbon Neutrality C (018419).

Author: Yaru

Entering the fourth quarter of 2025, the A-share battery and new energy sector has seen a long-awaited reversal in market conditions. According to the latest market research, driven by the dual factors of energy storage demand (especially in overseas markets) and breakthroughs in solid-state battery technology, the industry is rapidly shifting from "overcapacity" two years ago to "local shortages." The order backlog of leading battery manufacturers has extended to 2026, and energy storage battery cells have even reached a state of "hard-to-get."

Against this backdrop, investing in the battery sector through funds has become a choice for many investors. However, the "battery funds" on the market are not all the same. We categorize them into three major schools for analysis.

In-depth Analysis of the Three Major Battery Fund Schools

1. Niche Sector Focus School

Representative Fund: GF Carbon Neutrality Thematic Hybrid Initiative C (018419)

Fund Manager: Zheng Chengran

Core Features:

Although this fund is named "Carbon Neutrality," based on its latest holdings and operations in 2025, it is more like an "Energy Storage and Battery Core Asset Enhancement" fund.

• Holding Style: Extremely focused. Manager Zheng Chengran is known for his expertise in uncovering opportunities in the photovoltaic and energy storage industry chains. According to data disclosed in the second half of 2025, the fund's top ten holdings (such as Sungrow, EVE Energy, CATL, Ginlong Technologies, etc.) often account for more than 50% of the portfolio, with a high concentration in the two high-elasticity segments of "batteries + energy storage inverters."

• Latest Views (End of 2025): The fund manager recently pointed out that the clear targets for the energy storage system construction by 2030 have brought certainty to the energy storage sector. He tends to heavily invest in leading companies that can benefit from the overseas energy storage boom.

• Advantages: Strong offensive capability. If the battery and energy storage sectors rise, the explosive power of such funds is usually higher than that of broad-based funds.

• Disadvantages: Extreme volatility. Due to concentrated holdings, once the industry corrects, the drawdown is relatively large.

2. Pure Index Tracking School

Representative Funds: China Merchants CSI Battery Theme ETF (and its feeder fund), GF China Securities New Energy Vehicle Battery ETF, etc.

Core Features:

These funds passively track indices (such as the CSI Battery Theme Index). Their holdings are a "basket" of all leading companies in the battery industry chain, including upstream lithium mines (e.g., Tianqi Lithium), midstream battery manufacturers (e.g., CATL, EVE Energy), and material suppliers (e.g., Yunnan Energy New Material).

• Advantages: Clear style, no style drift. The fees are usually lower, making them suitable for investors who are bullish on the overall beta performance of the sector.

• Disadvantages: Unable to exclude fundamentally deteriorating stocks. For example, when upstream lithium carbonate prices plummet, mining companies in the index will drag down overall performance, while actively managed funds may reduce positions in advance to avoid risks.

3. Broad New Energy Vehicle School

Representative Fund: ICBC New Energy Vehicle Hybrid (005939), etc.

Core Features:

These funds have a broader vision, investing not only in batteries but also in complete vehicles (e.g., BYD, Seres) and components (e.g., Tuopu Group).

• Advantages: Risk diversification. If the battery segment suffers from price wars, but the complete vehicle segment benefits from surging sales, such funds can balance returns through position adjustments. For example, in 2025, some of these funds heavily invested in complete vehicle stocks like Seres, benefiting from the sales boom of Huawei's smart-selected vehicles, which pure battery funds cannot achieve.

• Disadvantages: Lack of purity. If you only want to invest in "battery technology revolutions" (e.g., solid-state batteries), such funds may dilute your investment focus by including complete vehicle manufacturing.

In-depth Perspective on GF Carbon Neutrality C (018419)

• Performance Elasticity: In 2025, with the better-than-expected demand for energy storage, the fund demonstrated strong rebound capabilities. For example, during the market fluctuations in late November, its net value rose 1.44% against the trend in a single day, showing alpha capabilities at the stock selection level.

• C-Class Share Characteristics: Code 018419 is a C-class share, with no subscription fee but a sales service fee. This is very suitable for short- to medium-term trading (e.g., holding for less than one year). If you plan to hold for more than 1-2 years, A-class shares usually have more favorable fee structures.

• Features: This fund is an "initiative" fund with a relatively small scale (approximately RMB 0.04 billion as of the end of Q3 2025). Small-cap funds may face liquidity shocks when dealing with large redemptions, but they also have the operational flexibility of "small boats are easy to turn around."

How to Choose?

1. If you are a technology believer (firmly convinced that solid-state batteries and energy storage are future growth points) and have high risk tolerance:

◦ First Choice: Actively managed funds like GF Carbon Neutrality C (018419).

◦ Reason: The rapid iteration of energy storage and solid-state battery technologies requires professional fund managers to identify true leaders and avoid "PPT companies." Managers like Zheng Chengran, who are deeply rooted in this field, have an advantage.

2. If you are bullish on the industry's recovery but don’t want to worry about stock selection:

◦ First Choice: Battery ETFs.

◦ Reason: Simple and straightforward—as long as the battery sector rises, you won’t miss out.

3. If you want exposure to batteries but fear high volatility:

◦ First Choice: Broad new energy vehicle funds (e.g., ICBC New Energy, etc.).

◦ Reason: Broader industry chain coverage with relatively smoother volatility.