On July 31st, several innovative drug-focused Exchange-Traded Funds (ETFs) that had shown robust performance in the initial stages underwent a correction. Nonetheless, in the broader perspective, innovative drug ETFs continue to rank among the top-performing ETF products across the market recently. According to Wind data, as of July 31st, the Hong Kong-listed innovative drug ETFs managed by Huatai-PineBridge Fund, Wanjia Fund, and China Universal Fund have all surpassed 100% returns this year. Industry experts foresee the innovative drug sector poised for a "1-to-10" growth spurt, with an anticipated surge in the listing of innovative drug products domestically and the launch of representative new drugs in international markets. Investment strategies in this sector are transitioning from "defensive allocations" to "offensive tracks." However, it is crucial to acknowledge that the overall upward trajectory in the innovative drug sector may not be indefinitely sustainable, and future excess returns will hinge on investors' cognitive capabilities and interpretation of information. Only pharmaceutical companies that possess genuine innovative prowess will secure the favor of funds.