Why the Bonus Theme Fund Is "Hot"

Recently, in sharp contrast to the volatile trend of the A-share market, a large number of dividend theme funds have quietly strengthened. As of October 13, the CSI dividend index had risen 3.96% accumulatively during the year, 9.34 percentage points higher than the CSI 300 Index. Among the active equity products with the word "dividend", some products had earned more than 30% within the year. At the same time, the share of dividend themed ETFs increased by nearly 10 billion during the year, and several dividend themed funds have announced the adjustment of purchase restriction measures in recent days.

With the high volatility track investment "stalling" one after another, the once marginalized dividend theme fund has grown against the market in the period of low market sentiment, which reflects three characteristics:

First, the current A-share market shows a structural recovery, and the industry and theme market switch frequently. The dividend theme fund strategy shows excellent security and competitiveness based on the deep value investment logic.

The active investment products of dividend theme funds tend to focus on long-term investment, select high dividend paying listed companies with long-term stable growth ability as investment targets, pursue long-term capital appreciation and stable dividend income, and thus accumulate rich product returns. From the component stocks of the index, the sample stocks of the dividend index mostly contain low value blue chips with high dividends and stable dividends. In the environment of continuous emergence of uncertain factors and increasing difficulty in asset allocation, assets with relatively stable performance, low valuation and high dividends can rise and fall, which undoubtedly has greater advantages in controlling the withdrawal of net worth. For example, in the past three years, the CSI dividend index has risen by more than 10% in total, while the CSI 300 index has fallen by nearly 30% over the same period, showing obvious resilience; If the time continues to grow, the CSI dividend index has increased by 33.46% in the past five years, 11.78 percentage points higher than the CSI 300 index.

Secondly, the supervision plan is to improve and optimize the dividend supervision system, and dividend theme funds are also paid attention to simultaneously, and the market expects to form a virtuous circle.

Recently, the CSRC plans to revise a series of rules such as the Regulatory Guidelines for Listed Companies No. 3 - Cash Dividends of Listed Companies and the Guidelines for the Articles of Association of Listed Companies. The Exchange will simultaneously revise the operational guidelines to promote the development of more influential dividend index products. Encourage fund companies to issue bonus fund products and guide market funds to increase their preference for cash dividends of listed companies. This will significantly improve the dividend enthusiasm of listed companies; The sample space for dividend index and corresponding fund products will also be greatly expanded to further improve the stability; When dividends are used as an important reference element to measure the stock value of listed companies, investors' preference for high dividend assets increases and can obtain better investment experience and long-term returns, which will strengthen the value investment concept, and further promote listed companies to pay more attention to shareholder returns, forming a virtuous circle.

Third, in the context of a moderate economic recovery and the continuous increase of favorable policies, the CSI dividend index with high dividend yield and undervalued characteristics is favored. Allocating long-term funds continue to flow in, and the valuation of blue chips represented by banks is expected to be repaired.

At present, compared with the broad base and industry index products, the number of dividend themed products is small and the scale is limited. Up to now, there are less than 200 bonus theme funds in the whole market. However, the fund company is actively researching and developing dividend products, increasing the distribution of dividend theme funds, and providing investment strategies suitable for different scenarios for different types of customers. Further expansion of the subsequent dividend theme funds will help improve the pricing efficiency of undervalued and high dividend assets, including banks and other large financial products with high weight.

key word: dividend fund theme index