Group 1 - The market experienced volatility today, with computing power stocks collectively declining, while the cash flow ETF (159399) demonstrated strong anti-drawdown characteristics, attracting significant capital subscriptions [1] - As of May 26, the cash flow ETF (159399) has surpassed 3.5 billion yuan in scale, ranking first among its peers, and exhibits good liquidity [1] - The cash flow ETF (159399) utilizes free cash flow as a stock selection factor, closely tracking the FTSE China A-Share Free Cash Flow Focus Index, excluding the financial and real estate sectors, and selecting the top 50 stocks with the highest free cash flow rates, thereby identifying "cash cow" enterprises in the A-share market for investors [1] Group 2 - Historical performance of the FTSE China A-Share Free Cash Flow Focus Index shows an annualized return of approximately 20% from 2014 to 2024, significantly outperforming the CSI 300 and the CSI Dividend Index during the same period, with positive returns for six consecutive years since 2019 [1] - The cash flow ETF (159399) has a contractual agreement for monthly dividend assessments, having announced three dividends by May 2025, which may enhance investor experience by providing opportunities for profit realization [1] - According to GF Securities, in the absence of new industry logic and significant market fluctuations, dividend assets may enter a headwind period in June, but for long-term investors, this could represent a favorable entry point, as dividend assets remain a foundational choice for long-term allocation amid significant external uncertainties [1]

Group 1 - Major Chinese banks, including ICBC, Bank of China, and others, have lowered RMB deposit rates, with one-year fixed deposit rates dropping below 1% [1] - The reduction in deposit rates is part of a broader macroeconomic trend, with domestic interest rate cuts and a decline in risk-free yields, making high-dividend assets more attractive [1] - The U.S. Federal Reserve maintained its benchmark interest rate at 4.25%-4.5%, while U.S. inflation data showed a decrease, which may enhance expectations for rate cuts and positively impact dividend strategies [1] Group 2 - The dividend sector is highlighted for its defensive attributes amid market volatility, with investors likely to prefer certainty in uncertain environments [2] - Historical performance indicates that dividend strategies outperform in turbulent and declining markets, serving as a stabilizing component in investment portfolios [2] Group 3 - The Cash Flow ETF (159399) focuses on large and mid-cap stocks, tracking the FTSE China A-Share Free Cash Flow Focus Index, and has shown an annualized return of approximately 20% from 2014 to 2024 [3] - As of May 19, 2025, the Cash Flow Index has a dividend yield exceeding 4.5%, providing a solid foundation for dividends [3] Group 4 - The Dividend State-Owned Enterprise ETF (510720) tracks the Shanghai Stock Exchange State-Owned Enterprise Dividend Index, with a dividend yield of 6.78%, the highest among major dividend indices [4] - This ETF has consistently announced dividends for 13 consecutive months since its launch in May 2024, making it a rare monthly dividend-paying ETF in the market [4]

Group 1 - The A-share market experienced a significant decline, with technology stocks leading the drop, while the Cash Flow ETF (159399) demonstrated strong defensive characteristics, only falling 0.3% during the session with a trading volume exceeding 130 million yuan [1] - The Cash Flow ETF utilizes free cash flow as a stock selection factor, closely tracking the FTSE China A-Share Free Cash Flow Focus Index, which excludes financial and real estate sectors, selecting the top 50 stocks with the highest free cash flow rates, thus identifying "cash cow" companies in the A-share market [1] - Historical performance of the FTSE China A-Share Free Cash Flow Focus Index shows an annualized return of approximately 20% from 2014 to 2024, significantly outperforming the CSI 300 and the CSI Dividend Index during the same period, with a consistent positive return for six consecutive years since 2019 [1] Group 2 - In 2022, during a market downturn, the Cash Flow Index increased by over 5%, highlighting its strong defensive attributes [1] - Global financial turmoil and lowered growth expectations are leading to reduced risk appetite among investors, making stable cash flow sectors increasingly valuable in a complex global economic environment [1] - The Cash Flow ETF (159399) has announced three dividends by May 2025, which may enhance investor experience by providing opportunities for profit realization [2]

Core Viewpoint - The recent dividend distribution of the cash flow ETF (159399) has led to investor confusion regarding the decrease in unit net value post-dividend, which does not indicate a reduction in overall fund returns [1][2]. Group 1: Dividend Mechanism - Fund dividends are distributions made to investors based on the fund's distributable profits, and the net asset value (NAV) is adjusted downwards to maintain total asset balance during the dividend payout [2][3]. - The analogy of a fruit-bearing tree is used to explain that dividends are akin to the fruits harvested, which, while reducing the tree's weight (NAV), provide tangible cash benefits to investors [2]. Group 2: Importance of Adjusted Net Value - The adjusted net value (also known as the ex-dividend net value) is crucial for accurately assessing fund performance, as it accounts for historical dividends and stock splits, providing a clearer picture of long-term asset appreciation [3][5]. - For the cash flow ETF (159399), as of April 17, the unit net value was 0.9812, while the adjusted net value was 0.9852, indicating a difference of 0.0040, which corresponds to the total dividends received [3][4]. Group 3: Fund Characteristics and Market Context - The cash flow ETF (159399) focuses on stocks with high free cash flow, excluding financial and real estate sectors, and aims to identify "cash cow" companies in the A-share market [5]. - Given the current uncertain market conditions, assets with abundant cash flow are seen as having stronger risk-averse capabilities, and government policies encouraging increased dividend distributions may enhance the attractiveness of such investments [5].