Core Insights - Index investing has experienced rapid development due to policy guidance, market evolution, and changing investor demands [1][4] - The past decade has shown a clear trend towards indexation and institutionalization in the A-share market, making it increasingly difficult to achieve excess returns [1][4] - Investors typically focus on two types of returns: Beta (market returns from volatility) and Alpha (returns that exceed the market), with a growing interest in absolute return strategies [1][4] Group 1: Index Investment Strategies - Changcheng Fund has systematically organized its index investment strategies, including replication index strategies, "Index+" strategies, and absolute return strategies to provide investors with a richer selection [1][4] - The replication index strategy covers various styles of return exposure, aiming to provide clients with foundational and diverse standard tools [1][4] - Recent products launched by Changcheng Fund include a series of standard replication index products such as the Low Volatility Dividend 100, High Dividend Hong Kong Stock Connect, and others [1][4] Group 2: "Index+" and Absolute Return Strategies - The "Index+" strategy aims to capture both Beta and Alpha, allowing products to follow the market while also generating excess returns [2][5] - The CSI 500 index is highlighted as a balanced style index that seeks to uncover investment opportunities through breadth and balance [2][5] - The absolute return strategy employs quantitative analysis to dynamically control exposure across different equity indices and markets, helping clients achieve absolute return through quantitative investment strategies [6] - Two main product directions are identified: passive investment strategies based on time and space distribution (e.g., barbell and grid strategies) and a fully quantitative process from strategic to tactical levels [6]

Core Viewpoint - In the current market environment characterized by high inflation and low interest rates, stable cash flow has become a consensus among investors. The "Dividend Index" has emerged as a star player in portfolio allocation due to its continuous dividends and relatively low volatility. However, with an increasing number of dividend indices claiming superiority, it is essential to evaluate which index strikes the best balance between "rich returns" and "controllable risks" [3][4]. Analysis and Discussion What Constitutes a Good Dividend Index? - A good dividend index must meet five criteria: 1. **Authenticity**: Trust in real cash dividends rather than inflated claims [5]. 2. **Clear Standards**: A transparent selection and weighting methodology for constituent stocks [5]. 3. **Diversification**: A well-diversified index to avoid concentration in a few companies or industries [5]. 4. **Stable Returns**: The ability to maintain dividends during market fluctuations, avoiding "pseudo-dividends" that drop sharply after initial high payouts [5]. 5. **High Dividend Yield**: A historically high and sustainable dividend yield that outperforms the industry average [5]. Comparison and Analysis of Dividend Indices - The analysis includes 30 dividend indices categorized into four types: 1. **Ordinary Dividends**: Focused primarily on dividend yield, such as the CSI Dividend and SSE Dividend. 2. **State-Owned Enterprise Dividends**: High dividend stocks selected from state-owned enterprises. 3. **Low Volatility Dividends**: Stocks with low volatility combined with dividends. 4. **Other Dividends**: Unique indices that combine dividends with other factors like quality and value [7][8]. Ratings of Dividend Indices - The ratings of the 30 dividend indices are as follows: - **5 Stars**: 2 indices (CSI Dividend, Low Volatility 100) - **4 Stars**: 4 indices (SSE Dividend, State-Owned Enterprise Dividend, 300 Low Volatility) - **1 Star**: 5 indices (Shenzhen Dividend, Hong Kong Stock Connect Low Volatility, Consumer Dividend, Dividend Quality, Dividend Potential) [18]. Basic Data Comparison of Dividend Indices - Key metrics for the indices include dividend yield, PE ratio, annualized returns over five years, volatility, and Sharpe ratio. For instance, the CSI Dividend has a dividend yield of 6.5% and a PE ratio of 7.9, indicating a favorable position compared to others [20][21]. Fund Representation and Scale - The number of passive funds tracking these indices varies significantly. The CSI Dividend and Low Volatility 100 are highlighted as having a higher number of tracking funds, which may indicate better management and competition [23][26]. Conclusion - The analysis provides insights into the performance and characteristics of various dividend indices, helping investors make informed decisions based on their risk preferences and investment goals [3][5][7].