Low volatility ETFs with dividends have attracted 5.9 billion yuan in the past 60 trading days. Institutions believe that embracing high dividends and allocating dividend assets is timely.
On December 23, the market rose and then fell back, with all three major indices briefly turning green. Against this backdrop, the Low Volatility Dividend ETF closed unchanged, with a change of 0.00%, a turnover rate of 1.92% for the day, and a trading volume of 5.10 billion yuan. Fund flows indicate that the Low Volatility Dividend ETF has long been favored by funds, with a net inflow of 1.15 billion yuan in the past 5 trading days, 1.59 billion yuan in the past 10 trading days, and 5.9 billion yuan in the past 60 trading days. As of December 22, the fund's circulation scale was 26.69 billion yuan.
Zhongtai Securities believes that in a low interest rate and asset shortage environment, the increasing value of high dividend and strong cash flow asset allocation that can provide stable cash returns is becoming more prominent. This demand may be further consolidated by the active participation of long-term funds such as insurance funds in the market and the strengthening of asset-liability matching.
China International Capital Corporation points out that in the latter part of December, dividend assets may also highlight their defensive value. The dynamic price-earnings ratio of the CSI 300 Index is close to its historical average, leaving sufficient room for valuation expansion compared to the previous bullish market peak, indicating that the Chinese stock market bull run may not be over yet.
Caixin Securities believes that the high dividend direction is sustainable, as institutional funds continue to increase their allocation to dividend assets, and this strategy is expected to not miss out on the current market rally.
Zhang Yidong from Industrial Securities proposes to focus on four types of opportunities in 2026: growth momentum, including Internet, end-side AI, media under the AI wave, as well as the development of military technology, energy technology, and new consumption driven by the "15th Five-Year Plan"; dividend assets, with insurance, banks, and high-yielding varieties in the low interest rate environment having strategic allocation value; discovering value in traditional industries, focusing on industry leaders with profit improvements under global supply chain restructuring, offshore supply chains, and policies against "internal competition"; and strategic assets such as gold and rare earths, which play an important role in the reconstruction of the global order. As a stable tool for asset allocation in a volatile market, the Low Volatility Dividend ETF investors can participate through regular investment to smooth out the risk of fluctuations. Investors without a stock account can also allocate through its off-exchange linked funds.
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