Core Viewpoint - The recent performance of dividend-focused assets has been strong, particularly driven by the rise of high-dividend bank stocks, with the dividend low volatility index reaching a new high since its inception [1] Group 1: Performance Metrics - As of July 4, the annualized return of the dividend low volatility index over the past five years is 8.43%, outperforming the dividend low volatility 100 index (6.34%) and the S&P Hong Kong Stock Connect low volatility dividend index (6.14%) [1] - The dividend low volatility ETF (512890) has seen significant net inflows, attracting 699 million yuan over five trading days from June 30 to July 4, making it the only dividend-themed ETF with net inflows exceeding 600 million yuan during this period [1] - The fund size of the dividend low volatility ETF (512890) has reached 19.738 billion yuan, marking a continuous weekly net growth for three weeks since June 16 [1] Group 2: Investment Appeal - The dividend low volatility ETF (512890) has demonstrated strong performance resilience and risk resistance, achieving positive returns every year since its inception, making it attractive for long-term capital allocation in a low-interest-rate environment [2] - The ETF's connection funds have gained popularity among retail investors, with the number of holders exceeding 829,800 as of the end of 2024, making it the only dividend-themed index fund with over 800,000 holders [2] - The Y share class of the ETF has been included in the personal pension investment range and became the first index fund to exceed 100 million yuan in size by March 31, 2025 [2] Group 3: Product Offerings - In addition to the dividend low volatility ETF (512890), the company has developed a range of dividend-themed ETFs, including the first dividend ETF (510880) and the first QDII mode high-dividend ETF (513530), with a total management scale of 41.8 billion yuan for its dividend-themed ETFs as of July 4 [3]

Core Viewpoint - The market is experiencing a rotation towards small-cap and technology growth sectors, while dividend indices are undergoing a correction. However, this short-term adjustment does not seem to affect the confidence in the continuous allocation of funds to dividend assets [1] Fund Performance - The Reducing Volatility Dividend ETF (512890) has seen a net inflow of 271 million yuan over three consecutive trading days from May 28 to May 30, making it the only dividend-themed ETF to exceed 250 million yuan in net inflow during this period [1] - From May 19 to May 30, the fund's shares and scale increased by 630 million shares and 960 million yuan, respectively, achieving a new scale high of 16.952 billion yuan as of May 30 [1] Dividend Yield - As of May 30, the one-year dividend yield of the Reducing Volatility Dividend Index reached 6.4%, which is higher than 91.89% of the time over the past decade. This yield is expected to attract long-term funds, such as insurance capital, in a declining interest rate environment [1] Historical Performance - Since its establishment on December 19, 2018, the Reducing Volatility Dividend ETF has demonstrated strong market adaptability and risk resistance, achieving positive returns every year from 2019 to 2024 [1] Popularity Among Investors - The connecting funds of the Reducing Volatility Dividend ETF (including A class 007466, C class 007467, I class 022678, Y class 022951) have become popular options for retail investors, with a total of 829,800 account holders by the end of 2024 [1] - The Y share (022951) was the first index fund to exceed 100 million yuan in scale and was included in the personal pension investment range as of March 31, 2025 [1] Management Experience - Huatai-PB, one of the first ETF managers in China, has over 18 years of experience in dividend index investment and has developed a diverse range of dividend-themed ETFs since 2006 [1] - As of May 30, Huatai-PB's management scale for dividend-themed ETFs exceeded 39.6 billion yuan [1]