Defense value highlighted! The low-volatility ETF attracted nearly 2.7 billion in funds against the trend for 60 trading days. Institutions: Comprehensive interest rate cuts still need to wait for the right time.

On January 16, the market opened higher in the morning and then fell back, with all three major indexes closing lower. In this market environment, the low volatility dividend ETF fell by 0.61% to 1.146 yuan, with a turnover rate of 2.22% and a trading volume of 5.81 billion yuan. In terms of fund flows, the low volatility dividend ETF has been favored by long-term funds. In the past 5 trading days, there was a net outflow of 1.32 billion yuan, in the past 20 trading days, there was a net inflow of 11.69 billion yuan, and in the past 60 trading days, there was a net inflow of 26.97 billion yuan. As of January 15, 2026, the ETF's circulating size was 262.05 billion yuan. On the news front, the central bank has introduced eight monetary policy measures. Galaxy Securities analysts pointed out that the current coordination between monetary policy and fiscal policy is obvious. It is expected that there will still be a 50BP reserve requirement cut in the first quarter to maintain reasonable liquidity and coordinate with government bond issuance; comprehensive interest rate cuts still require an appropriate timing. Stabilizing expectations, stabilizing employment, and stabilizing the market will be the main themes to observe the possibility of comprehensive interest rate cuts. Lu Zhe, chief economist of East China Securities, expressed in the latest views that based on the average cycle and upward space from 2010 to 2025, the current spring volatile market has entered the second half in terms of space and is about halfway in terms of time. After the turnover peak, the index may continue to fluctuate upward for about a month before entering a phase of consolidation and accumulation. In the background of low interest rates and increased external uncertainties, the defensive attributes of dividend styles represented by the low volatility dividend index are highlighted. Investors can strategically invest in low volatility dividend ETFs through regular investment to smooth out volatility risks. Investors without stock accounts can also allocate through their off-exchange linked funds.