① Nearly half of the dividend-themed products newly established during the year were established in the fourth quarter of this year, and the scale of newly established products exceeded 1.3 billion yuan; ② dividend-themed ETFs have absorbed more than 3 billion yuan since the fourth quarter, and the net inflow during the year exceeded 13.3 billion yuan.
Financial News Agency, November 24 (Reporter Zhou Xiaoya) “Understanding, Joining, and Transcending” has become a true picture of investors facing dividend themed funds this year.
With the establishment of the fourth dividend-themed fund this month, dividend-themed funds in the entire market have now reached the 110 mark. (Using fund names to include “dividend” or “dividend” fund statistics, excluding linked funds, pure debt, and currency funds) It is worth noting that nearly half of the dividend-themed products newly established during the year were established in the fourth quarter of this year, and the scale of newly established products exceeded 1.3 billion dollars.
At the same time, capital continues to flow into stock dividend themed funds. Up to now, the share of dividend-themed funds has increased by more than 17 billion shares during the year (fund shares of active equity funds have changed until the end of the third quarter of this year). Since the fourth quarter, dividend-themed ETFs have absorbed more than 3 billion yuan, while net inflows during the year exceeded 13.3 billion yuan.
It is worth noting that although the popularity of investment has not abated, the performance of dividend-themed funds during the year was highly diversified. As of November 23, the highest profit during the year was still the Golden Eagle dividend value, which was over 35%; while the product that lost the most during the year had already lost more than 20%, with a performance difference of more than 50% between the beginning and end. In addition to the large differentiation in performance, new dividend-themed indices and products are still being launched one after another. How to choose the right dividend-themed fund has become a new topic for investors.
More than 10 billion dollars of capital entered the market during the year
On November 23, the net inflow of 2 non-commodity ETF products exceeded 600 million yuan. Of these, 1 was the 100 ETF with low volatility in the Jingshun Great Wall China Stock Exchange dividend. This was also the strategic ETF with the highest net inflow on that day.
The ETF's fund share and fund size both reached new highs, with 2.5 billion shares and 4.405 billion yuan, respectively. Judging from the changes in fund shares, the rate of fund share growth has accelerated markedly since the fourth quarter. According to Wind data, as of November 23, the 100 ETFs with low volatility in the Jingshun Great Wall China Securities dividend had a total inflow of 4.177 billion yuan during the year, ranking first among all strategic ETFs, with a net inflow of 2,429 billion yuan since the fourth quarter alone.
This is no exception. According to the data, out of the 10 strategic ETFs with the highest net inflows during the year, only 6 were dividends-themed ETFs. In addition to the 100 ETF with the low volatility of the Chinese Securities Dividend of the Jingshun Great Wall, the net inflow of the Huatai Berry Dividend Low Volatility ETF and the Huatai Berry Dividend ETF also exceeded 1 billion yuan during the year. Overall, the net inflow of dividend-themed ETFs during the year exceeded 13.3 billion yuan.
In addition to ETF capital inflows, dividend-themed active management products are also popular in the market. According to data from the Third Quarterly Report, as of September 30, fund shares worth of the Fuguo China Securities Dividend Index had increased, the Jianxin Double Interest Dividend, and the Golden Eagle Dividend value had all increased by more than 1 billion shares during the year.
The total number of products reached the 110 mark
On the one hand, there is a continuous inflow of capital; on the other hand, the detailed layout of fund companies. Judging from the number of products, with the establishment of another dividend themed ETF on November 24, there are currently 110 dividend themed funds in the market. Of these, 12 products were all newly established during the year.
On November 24, the establishment of the Morgan S&P Hong Kong Stock Exchange Low Volatility Dividend ETF was announced. The issuance scale was 1,363 billion yuan, making it the second largest non-commodity ETF established since the fourth quarter, after the Huaxia Shanghai Stock Exchange Science and Technology Innovation Board 100 ETF (3.895 billion yuan). This is also the fourth newly established dividend-themed fund this month. On the same day, Tianhong Fund announced that its Tianhong China Securities Dividend Low Volatility 100 ETF was established, with an issuance scale of 271 million yuan.
In addition, Wanjia Dividend Quantitative Stock Selection and Anxin Dividend Selection were also established this month, with establishment scales of 10.03 million yuan and 264 million yuan respectively. The Huatai Berry China Securities Central Enterprise Dividend ETF, which was established in the first half of this year, has a scale of 2 billion yuan. It is the largest dividend-themed fund newly established during the year.
Dividend themed funds were newly established during the year. Apart from the two fund companies Anxin Fund and Bodo Fund, the rest of the fund managers had also set up dividend-related products before, and were also distributed in detail through newly developed products during the year.
How to choose dividend themed funds?
The reason for the “two-way rush” from fund companies and investors is mainly due to the “anti-decline” nature of dividend-themed funds. The research report of Haitong's quantitative team mentioned that capital gains and dividend income are two sources of return for dividend investments. Dividend investments can obtain stable cash dividends, effectively improving portfolio performance and stability. Furthermore, the profit situation of companies with high dividend payment rates is more mature and stable. At the same time, valuations are low, safety margins are high, expected returns fluctuate relatively little, and risk resistance is strong.
Judging from the actual product performance, as of November 23, Golden Eagle's dividend value was still the dividend-themed fund with the highest net worth return during the year, reaching 35.68%; in addition, the annual net worth returns of products such as the Southern S&P China A-share dividend low wave 50 ETF, the Harvest Shanghai and Shenzhen 300 dividend low volatility ETF, the Jingshun Great Wall China Securities Low Dividend 100 ETF, and Tianhong China Securities Low Dividend 100 also exceeded 15%.
Regarding the popularity of high-dividend assets, a fund manager said bluntly that holding high-dividend assets represents to some extent an investor's pessimistic expression of the economy.
Haitong's quantitative team also analyzed that under the growth boom style, companies with high dividends are relatively less attractive. “Dividend investing usually uses the dividend rate to select stocks, and the dividend rate depends on two factors: dividend payment rate and valuation. Companies with high dividend payout rates generally have stable profits, but at the same time have relatively little room for growth.”
And as products and scale go hand in hand, how can we choose to invest in hundreds of dividend themed funds?
Zheng Tianxing, fund manager of Jingshun Great Wall, compared and analyzed the low dividend of the China Securities Company and the low dividend of 100. He mentioned that apart from the difference in the number of constituent stocks, the difference in preparation plans between the two is mainly reflected in the weighting method. The low dividend is mainly weighted by the dividend rate, while the low dividend of 100 is weighted according to the “dividend rate/volatility over the past year”. Also, the frequency of regular adjustments for the two indices is also different.
“The cost performance ratio has been fully reflected in the dividend investment itself.” In his opinion, the low dividend of 100 has a low volatility factor as a volatility control, which is suitable for long-term holdings or regular fixed investments. However, if the index's dividend rate falls to an uncost-effective range, this situation may require the use of bottom position allocation to prolong the position opening period.
“The recent increase in the decline in new housing transactions has led to weak performance in real estate, building materials and other sectors, further exacerbating the market's lack of confidence in the consumer sector. However, from leading wine companies that have exceeded expectations in factory prices, it can be seen that the current policy is more caring for the consumer sector.” The Western Profit Fund said that, based on industry distribution, the SZSE dividend index includes a high “consumption+real estate chain” attribute, so it often performs well during periods of improving economic expectations and rapid recovery in fundamentals.
Looking ahead to the fourth quarter and next year, they believe that as a series of positive policies such as the 1 trillion category of special treasury bonds, bundles of debt, urban village reform, and real estate relaxation continue to gain strength, the trend of continuing steady progress in China's macroeconomic economy may remain the same, or it may have a positive impact on the valuation restoration of the Shenzhen Stock Dividend Index.