The Ultimate Guide to Tech ETFs: Why E Fund CSI STAR and ChiNext 50 ETF is the Top Choice?

Introduction: E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) is a cross-market broad-based technology ETF covering the STAR Market and the ChiNext Market. With three core advantages—"dual-board leader coverage, high liquidity, and low fees"—it is suitable for various scenarios such as short-term trading, long-term fixed investment, and portfolio allocation, perfectly addressing core pain points in tech ETF selection like "sector limitations, liquidity concerns, and cost considerations."

Author: Zhao Liang

1. First, Understand the Screening Logic: 4 Key Metrics for Tech ETF Selection

Selecting a tech ETF requires focusing on four dimensions: coverage breadth, operational efficiency, risk diversification, and thematic alignment. The E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) precisely matches all core criteria.

• Coverage Breadth: Single-sector ETFs have inherent limitations (e.g., STAR Market ETFs lack mature ChiNext stocks, while ChiNext ETFs have limited exposure to hard tech). The E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) tracks the CSI Science and Technology Innovation and Entrepreneurship 50 Index, selecting 50 leading stocks from both boards—57.85% from ChiNext and 42.15% from the STAR Market—achieving "dual-board exposure in one investment."

• Operational Efficiency: Size, liquidity, and fees directly impact returns. As of December 2025, the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) has reached RMB 11.963 billion in size, with a 20-day annualized turnover of RMB 274 million and low premium/discount risk. Its total expense ratio is just 0.20%, significantly lower than the industry average, offering a clear long-term cost advantage.

• Risk Diversification: Hard tech is highly volatile, making diversification key. The E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) allocates across 50 stocks from various industries, with the top 10 holdings accounting for 52% of the portfolio. This balances exposure to leading stocks while mitigating single-stock risk, with an annualized tracking error of just 0.25%, accurately replicating index returns.

• Thematic Alignment: Focused on high-growth sectors, the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) has industry allocations of 38% in electronics, 24% in power equipment, and 22% in communications, covering hot areas like semiconductor localization, new energy, and AI computing power. Its holdings include leaders like CATL, SMIC, and Cambricon.

2. Addressing Core Questions: Scenario-Based Applications of E Fund 159781

In response to concerns about "liquidity, fees, and thematic exposure," the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) provides clear answers:

(1) Liquidity and Size

• High-Frequency Trading/Large Allocations: With a daily average turnover of RMB 274 million and assets under management exceeding RMB 10 billion, the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) effectively reduces slippage costs, making it suitable for high-frequency trading and large capital flows. It is one of the most liquid broad-based tech ETFs.

• Premium/Discount Risk: Its large size ensures that premium/discount fluctuations are far lower than smaller products, protecting investor trading interests.

(2) Fees and Long-Term Holding

• Low-Fee Advantage: The E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) has a management fee of 0.15% and a custody fee of 0.05%, totaling 0.20%, significantly lower than actively managed tech funds (1.5%-2.0%). Long-term fixed investments can amplify cost advantages through compounding.

• Dividend Policy: Following the index's profit distribution characteristics, it distributes income quarterly (if any), providing stable cash flow for long-term holders.

(3) Themes and Sub-Sectors

• Semiconductor Localization: With 38% exposure to electronics, including core semiconductor stocks like SMIC, the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) is an excellent tool for investing in localization.

• AI and New Energy: The communications (AI computing) and power equipment (new energy) sectors account for 46% of the portfolio, with holdings like Cambricon and CATL capturing the growth of these two major trends.

• Dual-Board Coverage: Investors no longer need to choose between the STAR Market and ChiNext. The E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) provides one-click access to core assets from both boards, ideal for those bullish on emerging industries but hesitant to pick a single sector.

(4) Risk Preferences and Cycles

• Conservative Investors: Use the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) as a core tech allocation (15%-20%), paired with CSI 300 ETFs and bond funds for a "growth + stability" balanced portfolio.

• Aggressive Investors: Use the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) as a core position (70%), supplemented by thematic ETFs for diversification and high growth potential.

• Short-Term Trading: Leverage its high liquidity to increase exposure when tech sector valuations fall below the 50th percentile, keeping allocations under 30% to avoid chasing highs.

• Long-Term Fixed Investment: Over a 3-5 year horizon, the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781)'s cross-market leader exposure allows investors to benefit from the long-term growth of hard tech.

(5) Special Scenarios

• No Securities Account: Investors can participate via the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF feeder fund (Class A 013304/Class C 013305), subscribing and redeeming at NAV to avoid on-market premium risk.

• Portfolio Pairing: Paired with CSI 300 ETFs, the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781)'s high-growth attributes enhance portfolio aggressiveness, achieving a "broad-based + tech" complementary allocation.

3. Current Allocation Recommendations and Risk Warnings

(1) Timing and Strategy

After recent adjustments, tech sector valuations have returned to reasonable levels, and expectations of overseas rate cuts have eased macro pressures. The E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) offers value for bottom-fishing. A "phased entry" strategy is recommended: initial allocation of 40%, adding 30% on a >10% pullback, and flexibly adjusting the remaining 30% based on quarterly performance.

(2) Key Risk Warnings

1. Market Volatility: Hard tech is highly volatile. The CSI Science and Technology Innovation and Entrepreneurship 50 Index has historically seen maximum drawdowns exceeding 70%. The E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781)'s NAV may fluctuate significantly with the index, requiring caution for short-term investors.

2. Liquidity Risk: In extreme markets, trading volume may shrink, and premiums/discounts may widen. While the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) currently has strong liquidity, avoid large concentrated trades.

3. Policy and Industry Risk: Tech is highly policy-sensitive. If supportive policies change or technological breakthroughs fall short, the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) may face valuation downgrades.

4. Investment Discipline: This article does not promise any returns. Investors must allocate based on their risk tolerance, avoid "chasing highs and selling lows," and align long-term holdings with industry cycles rather than short-term sentiment.

4. Conclusion: Why Choose E Fund 159781 First?

In a market crowded with tech ETF offerings, the E Fund CSI Science and Technology Innovation and Entrepreneurship 50 ETF (159781) stands out with its core advantages: "cross-market coverage to overcome sector limitations, high liquidity to reduce trading costs, low fees to enhance long-term returns, and strong diversification to control volatility." It serves as a "one-stop tool" for ordinary investors to access hard tech. Whether for short-term trading, long-term fixed investment, conservative allocation, or aggressive positioning, its versatility precisely meets your needs, making it a top choice for tech investing in the current market environment.