Home » The net value of the fund is steadily increasing and the dividend strategy is in the ascendant | Shanghai Securities News

The net value of the fund is steadily increasing and the dividend strategy is in the ascendant | Shanghai Securities News

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Dividend assets continue to attract investors as high-dividend strategies gain momentum

By Nie Linhao

Investors are flocking to high-dividend assets as dividend strategy funds continue to perform strongly in the market. The attractiveness of dividend stocks has been on the rise, with many dividend-themed ETFs seeing significant inflows of funds for subscription. Fund companies are also launching new dividend-themed funds at an accelerated pace, highlighting the continued interest in high-dividend assets.

The net value of dividend strategy fund products has been steadily increasing, reflecting the growing popularity of these investment options. High-dividend stocks in sectors such as crude oil, coal, and banking have seen substantial gains, driving the overall performance of dividend-themed index funds.

According to Choice data, there are currently 110 equity funds in the market with a focus on dividends, with several funds posting double-digit gains. Dividend-themed index funds have also performed impressively, with average returns of 6% and several products returning more than 7% this year.

The dividend sector is experiencing an influx of funds, with 19 dividend-themed ETFs currently available in the market. The total size of these funds has increased significantly since the beginning of the year, with a net subscription amount reaching 7.95 billion yuan. The shares of many dividend-themed index funds have also seen notable growth in recent months.

Despite recent fluctuations in the dividend sector, many institutions remain optimistic about the long-term viability of dividend strategies. The allocation logic of the dividend sector, anchored by the 10-year Treasury bond yield, remains unchanged. With the bond yield surpassing 2.4%, the attractiveness of dividend assets has only increased in the eyes of investors.

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Fund managers are confident in the potential of high-dividend assets, particularly in sectors such as Hong Kong stocks where stable dividends and strong free cash flow are prevalent. Central enterprises and state-owned enterprises are also seen as favorable investments, given their stable operations and attractive valuation levels.

As investors continue to seek out reliable sources of income, high-dividend assets are likely to remain a strategic choice in the coming quarters. The dividend sector’s resilience in the face of market volatility further underscores the appeal of these investment options for both individual and institutional investors alike.

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