Core Viewpoint - The article emphasizes the attractiveness of the Hong Kong Stock Connect Dividend Low Volatility Index, highlighting its high dividend yield, low volatility, and favorable valuation as a stable investment option in the current market environment [2][13]. Group 1: Dividend Yield and Selection Mechanism - The Hong Kong Stock Connect Dividend Low Volatility Index utilizes a three-year average dividend yield as a core selection criterion, targeting large-cap stocks with a minimum yield of 6%, resulting in a weighted average dividend yield of 6.07% as of July 2025, which is the highest among dividend indices [3][4]. - The index ranks above the Hang Seng High Dividend Index (4.8%) and the A-share Dividend Index (5.2%) in terms of dividend yield [3]. Group 2: Low Volatility and Defensive Strategy - The index features a low annualized volatility of 2.97%, which is 31% lower than the Hang Seng Dividend Index (4.3%), providing a defensive shield against market fluctuations [6]. - During significant market downturns, the ETF associated with this index experienced an average drawdown of only 2.1%, compared to a 5.8% drawdown for the CSI 300 Index [6]. Group 3: Valuation and Sector Allocation - As of Q2 2025, the index's price-to-book (PB) ratio stands at 0.63, indicating a valuation in the lowest 10% historically and nearly 50% lower than similar A-share dividend products [8]. - The index has a high concentration in three sectors: banking (32%), coal (18%), and transportation (14%), which are known for their high dividends and strong defensive characteristics [9]. Group 4: Performance and Policy Support - The index has demonstrated strong performance, with a 10.96% excess return over the Hang Seng Total Return Index in the past three months and a two-year annualized return of 30%, ranking it among the top three in the Hong Kong dividend product category [10]. - Approximately 75% of the index's holdings are in state-owned enterprises, benefiting from recent policy incentives aimed at improving market valuations for high-dividend assets, with 12 companies initiating buyback plans totaling over HKD 20 billion [13].
七夕稳稳爱丨第一只红利ETF怎么选?看这三大硬核逻辑
申万宏源证券上海北京西路营业部·2025-08-28 02:52