Penghua National Defense Grading Fund tracks the CSI National Defense Index, and its constituent stocks include listed companies affiliated to the top ten military industrial groups, as well as related listed companies that provide weapons and equipment to the national army, or have actual equipment sales or signed contracts with the army. Under the development trend of the University of National Defense Technology, the state will increase its investment in the national defense industry, and there will be investment opportunities in related sectors.

According to the data of Galaxy Securities, as of April 23, the annual net growth rate of Penghua National Defense Classified Parent Fund reached 43.79%, and the secondary market of Penghua National Defense B rose by 87%, with obvious leverage effect. Huarong Securities said that through reform, the military industry can still achieve sustained growth. In the long run, the growth of military expenditure, combined with the adjustment of military expenditure structure, the reform of military pricing mechanism and the growth of civilian products business of military enterprises, will bring about the improvement of industry fundamentals, and national defense military industry is a sunrise industry.