Core Viewpoint - The report emphasizes the increasing value of dividend assets in the current market environment, highlighting their defensive characteristics and long-term growth potential as the market shifts focus from growth expectations to dividend returns [5][13]. Group 1: Market Performance - The Hong Kong Stock Connect Low Volatility Dividend Index has shown a 0.81% increase over the past day, a 6.93% increase over the past month, and a 32.16% increase over the past year, with an annualized volatility of 12.14% [9]. - The A500 Low Volatility Dividend ETF has recorded a 0.19% increase over the past month and a 6.8% increase over the past year, with an annualized volatility of 8.78% [9]. - The 800 Low Volatility Dividend ETF has seen a 0.35% increase over the past month and a 4.77% increase over the past year, with an annualized volatility of 8.52% [10]. Group 2: Economic Context - In the context of macroeconomic uncertainty and increased market volatility, dividend assets are positioned as a "defensive shield" and a "ballast" for returns, underscoring their defensive value [5][13]. - The shift towards high-quality economic development in China is leading to a market pricing focus that aligns more with dividend returns, similar to trends observed in mature markets [5][13]. Group 3: Fund Performance Metrics - The 300 Cash Flow ETF, which excludes financials and real estate, has shown a 19.47% increase over the past year, with an annualized volatility of 9.77% [12]. - The performance of the 800 Low Volatility Dividend ETF over the past five years includes a 21.56% increase in 2021 and a 30.27% increase projected for 2024 [14].

Core Viewpoint - The market is expected to exhibit a "value plays, growth sings" characteristic from December to January, with large-cap, low-valuation, and cyclical styles likely to dominate due to year-end policy expectations and asset allocation preferences [5][10]. Group 1: Market Trends - The market style is generally balanced during the year-end and beginning of the year, favoring large-cap and low-valuation stocks [10]. - There is an expectation for increased policy support for economic growth as the year ends, aiming for a strong start to the new year [10]. - Major institutional investors are likely to prefer large-cap and dividend-paying assets during this period, making dividend assets suitable for core portfolio allocation [10]. Group 2: Fund Performance - The performance of various ETFs tracking dividend indices shows mixed results, with some indices experiencing positive growth while others face declines [3][4][8]. - The A500 Dividend Low Volatility ETF has shown a near-term performance of -1.30% over the past year, while the Hong Kong Stock Connect Dividend Low Volatility ETF has a one-year increase of 24.43% [3][8]. - The historical performance of dividend indices from 2019 to 2024 indicates varying annual growth rates, with some years showing significant increases, such as 23.12% in 2021 and 27.49% in 2024 for the 800 Dividend Low Volatility Index [11].

Core Viewpoint - The market is anticipating a favorable cross-year trend for 2026, driven by various positive catalysts such as annual reports, policies, interest rates, and market sentiment, establishing the investment theme for the year ahead [5][10]. Group 1: Market Performance - Historical data indicates that the A-share market typically performs well during the cross-year phase, often benefiting from multiple positive catalysts [5][10]. - The recent performance of various indices shows fluctuations, with the Hong Kong low-volatility dividend index experiencing a 25.7% increase over the past year, while the Shanghai Composite Index has seen a 15.44% increase [3][8]. Group 2: Investment Strategies - Institutions generally believe that dividend strategies remain a high-certainty allocation direction for the current phase, with small-cap dividend stocks potentially offering stronger price elasticity and valuation advantages compared to large-cap dividend assets [5][10]. - The report highlights the importance of dividend distribution mechanisms, noting that funds will distribute earnings when the excess return rate exceeds 0.5% [10][11]. Group 3: Fund Performance - The performance of various ETFs tracking dividend indices shows varied results, with the A500 low-volatility dividend ETF showing a 1.74% increase over the past year [3][9]. - The cash flow ETF, which excludes financial and real estate sectors, has shown an 8.32% increase over the past year, indicating strong performance among large-cap blue-chip stocks [4][9].

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]

Group 1 - The article emphasizes a dual investment strategy, likening it to the "Left and Right Fighting Technique" from "The Legend of the Condor Heroes," suggesting a balanced approach of defensive and offensive investments [1] - The suggested investment allocation includes 50% in high dividend and low volatility assets, and 50% in high elasticity and high prosperity low-altitude economy assets, aiming for a balanced portfolio [1] - The 800 Dividend Low Volatility ETF (159355) tracks the CSI 800 Dividend Low Volatility Index, focusing on quality large and mid-cap stocks, making it a stable choice for defensive positioning [1] - The General Aviation ETF (Huabao) (159231) tracks the National General Aviation Index, covering sectors like low-altitude economy and commercial aerospace, presenting a high potential for growth and offensive investment [1] Group 2 - The low-altitude economy sector is experiencing a temporary and healthy correction, with strong long-term investment potential supported by national strategic planning [3] - As of May 28, the General Aviation ETF (Huabao) has seen a decline of over 5% from its peak, indicating a potential buying opportunity for investors looking to capitalize on rebounds [3]