Dividend fund net values collectively approach new highs, with three major factors driving the strength.

Recently, the A-share market has continued to adjust, with the previously leading growth sectors coming under notable pressure. Earlier gains have gradually been given back, capital risk appetite has contracted accordingly, and the market has returned to a search for "certainty." Against this backdrop, a category of assets long overlooked has come back into viewdividend-themed funds with banks, coal, and utilities as their core holdings, whose net asset values are collectively approaching or even setting record highs. Looking only at index products under the dividend theme, on October 12, the unit net asset value of CCB CSI 300 Dividend ETF hit a new high since its establishment seven years ago, at 1.6854 yuan, with a year-to-date return of 5.84%. Guotai SSE State-owned Enterprise Dividend ETF and Galaxy SSE State-owned Enterprise Dividend ETF both set historical records on August 31 before a brief pullback, and have recently surged again, now just 0.03 yuan below their previous highs, with year-to-date returns of 13.99% and 13.88%, respectively. In the view of industry insiders, there are three main factors supporting the strength of dividend funds: first, the interest rate environment has raised the relative appeal of dividends; second, the allocation demand from long-term capital is continuing to be released; and third, the institutional foundation for dividend distribution is being continuously strengthened.