Core Insights - Huabao Fund is committed to launching sustainable mid-to-long-term investment funds under the guidance of professional, value, and long-term investment principles [1] - As of November 30, 2025, Huabao Fund's equity ETF assets under management reached 129.6 billion yuan, ranking 9th in the industry [1] - The "High Dividend ETF Family" developed by Huabao Fund has gained significant scale, including the largest bank ETF in the market and various other dividend-focused ETFs [1] Company Overview - Huabao Fund provides diverse asset allocation tools for investment institutions, focusing on long-term capital allocation strategies [1] - The bank ETF (512800) under Huabao Fund has an asset size of 18.3 billion yuan, ranking first among 10 bank-themed ETFs in the market [1] Product Details - The fund family includes several ETFs such as the Hong Kong Stock Connect Dividend ETF (159220), 800 Dividend Low Volatility ETF (159355), S&P Dividend ETF (562060), 300 Cash Flow ETF (562080), and A500 Dividend Low Volatility ETF (159296) [1] - The underlying index for the bank ETF is the China Securities Bank Index, with a base date of December 31, 2004, and a release date of July 15, 2013 [2] - The underlying index for the Hong Kong Stock Connect Dividend ETF is the S&P Hong Kong Stock Connect Low Volatility Dividend Index, with a base date of January 31, 2011, and a release date of February 20, 2017 [2]

Core Viewpoint - The competition among high dividend ETFs is intensifying, potentially driving the growth of ETF assets in Hong Kong, with some ETFs achieving dividend yields as high as 17% [2][4]. Group 1: High Dividend ETF Competition - The "winner-takes-all" dynamic in the high dividend ETF sector may lead issuers to launch more funds with higher dividend yields [4]. - The Global X HSCEI Covered-Call ETF (3416.HK) has the highest dividend yield at 17%, while the Hang Seng High Dividend 30 ETF (3466.HK) ranks second among non-derivative funds with a yield of 7% [4][6]. - The success of these ETFs is attributed to their attractive dividend yields, which can attract new assets if new products offer even higher yields [4]. Group 2: Market Trends and Fund Flows - The Hang Seng High Dividend 30 ETF and Global X HSCEI Covered-Call ETF have gained significant popularity among retail investors, leading to substantial fund inflows [7]. - The Global X HSCEI Covered-Call ETF's assets under management have surged 20 times since its launch, indicating strong liquidity and rapid growth [7]. - In May, both ETFs ranked among the top 20 most traded ETFs in Hong Kong, a shift from the traditional dominance of beta, leveraged, and inverse ETFs [7]. Group 3: Future Outlook for ETFs in Hong Kong - The number of new ETFs launched in Hong Kong this year is expected to set a record, with 25 ETFs already listed, surpassing the same period in previous years [9]. - The interest in Global X's HSCEI Covered-Call ETF is notably high, with its assets under management reaching $250 million, significantly higher than its peers [9][10]. - The Hang Seng High Dividend 30 ETF has consistently recorded fund inflows since its launch and is expected to maintain this momentum, presenting arbitrage opportunities for market makers [10].

Group 1 - TSMC's stock price has declined by 3.7% this year, while UMC's stock has increased by 11%, highlighting TSMC's underperformance compared to its competitor [1] - UMC's high dividend yield of over 6% has made it a significant holding in Taiwan's high-dividend ETFs, which have attracted approximately $10 billion in inflows this year [1] - TSMC is not included in the core holdings of the three major high-dividend ETFs in Taiwan, which prefer UMC due to its higher yield [1] Group 2 - TSMC remains fundamentally strong, reporting May revenue of NT$320.5 billion (approximately $10.7 billion), with a year-on-year growth of 39.6% [2] - Analysts expect TSMC's sales to grow by 39% in the second quarter [2]