Dividend assets welcome a good opportunity for allocation, and the scale of low volatility dividend ETFs reaches a new high.

On May 13, the low volatility ETF trading was active, with a 1% increase at the time of writing and a trading volume of 2.8 billion RMB. In terms of fund flow, it has received net purchases for 2 consecutive days, with the latest share amounting to 14.324 billion shares and a scale of 16.239 billion RMB reaching a new high. China Post Securities believes that the China-US trade negotiations may not go smoothly, and the pace of domestic demand stimulus policies will determine whether A-shares can strengthen again. In terms of allocation, the reduction of reserve requirements and interest rates enhances the cost-effectiveness of dividend-paying stocks, and internal demand trading should wait for the wind to rise. Due to the possible further decline in domestic credit spreads after the reduction of reserve requirements and interest rates, from the perspective of comparing debt-like assets, the cost-effectiveness of dividend-paying stocks is expected to be further enhanced, and it is recommended to invest in pure dividend-paying stocks such as banks, highways, railways, and electricity. According to Zhongzheng Securities, under the new regulations of public funds, dividend assets have a good opportunity for allocation. When held for a long period of time, dividend assets have a higher success rate compared to broad-based indices such as the Shanghai and Shenzhen 300 Index, which align well with the long-term performance assessment orientation of the plan. If held for more than 1 year, the success rate of the CSI Dividend and Low Volatility Index is higher than 70% compared to the Shanghai and Shenzhen 300 Index and the CSI 800 Index; when held for 3 or 5 years, the success rate is closer to 90%. Furthermore, based on the current holdings of active equity funds, the weight of dividend assets is not high, and the weight of high dividend industries such as banks and utilities is significantly lower than the standard industry weight. Investors can consider using the low volatility ETF and its associated funds for investment.