Core Viewpoint - The announcement indicates that two ETFs under China Merchants Fund will implement dividend distributions on November 14, 2025, with specific payouts and dividend ratios outlined for each fund [1][2]. Group 1: Dividend Distribution Details - The Hong Kong Dividend Low Volatility ETF (520550) will distribute a dividend of 0.004 yuan per share, marking its seventh distribution of the year, with a dividend ratio of 0.3% [1][2]. - The China Securities Dividend Quality ETF (159209) will distribute a dividend of 0.003 yuan per share, representing its fifth distribution of the year, also with a dividend ratio of 0.3% [1][2]. - The record date for both ETFs is set for October 31, 2025, with the ex-dividend date on November 17, 2025, and payout dates on November 19 and 20, 2025, respectively [2]. Group 2: Investment Strategy and Focus - The Hong Kong Dividend Low Volatility ETF focuses on a "high dividend + low volatility" strategy, primarily investing in defensive sectors such as finance, energy, and public utilities, with an index dividend yield close to 6% [1][5]. - The China Securities Dividend Quality ETF targets a "high dividend + high quality" strategy, selecting financially stable companies from sectors like consumer goods and pharmaceuticals, maintaining a dividend yield of 3%-5% while achieving superior ROE and price elasticity [5]. - Investors are advised to choose based on their risk preferences, with conservative investors leaning towards the Hong Kong Dividend Low Volatility ETF for stable returns, while aggressive investors may consider the China Securities Dividend Quality ETF for growth opportunities [8].

Core Viewpoint - The article discusses the increasing importance of dividend strategies in the A-share market, particularly in a context of heightened volatility and declining long-term interest rates, highlighting their characteristics of low volatility and high dividends as attractive options for conservative investors [2]. Group 1: Long-term Holding Logic - Dividend strategies provide natural undervaluation protection by adjusting constituent stocks to maintain a favorable dividend yield, effectively implementing a buy low, sell high approach [4]. - Cash dividends from constituent stocks lock in returns, further reducing market volatility risks [5]. - The compounding effect of long-term holding generally yields higher cumulative returns compared to attempting to time the market for profit-taking [5]. Group 2: Necessity of Profit-Taking - The primary reason for profit-taking is the inability to hold during market fluctuations, as dividend strategies, while relatively low in volatility, can still experience significant drawdowns of 20% or more over a three-year period [7]. - Investors should be cautious of valuation bubbles and avoid high dividend traps, as recent regulatory encouragement for dividends may distort historical dividend yield references [8]. - Changes in market environment and style can affect the performance of dividend strategies, with low interest rates and economic downturns favoring these strategies, while strong economic recoveries may necessitate a shift towards growth styles [9]. Group 3: Profit-Taking Strategies - Target return profit-taking involves setting specific profit goals and exiting once achieved [12]. - Profit-taking based on high valuations can be triggered when dividend yields fall below the 50th percentile of the past decade or when price-to-earnings ratios exceed the 75th percentile [12]. - Dynamic rebalancing of asset allocation can facilitate profit-taking, allowing for adjustments when internal ratios deviate by around 5 percentage points, thus achieving a balance between long-term holding and timely profit-taking [12].