Geopolitical conflicts escalate; focus on dividend-low volatility strategy allocation opportunities.

Ask AI · Why the Dividend Low Volatility Strategy is so popular in volatile markets?

Geopolitical risks at home continue to intensify. On the news front, on April 6 local time, the U.S. Central Command said that since the military action against Iran on February 28, the U.S. military has struck more than 13k targets in Iran, and more than 155 Iranian naval vessels have been damaged or destroyed.

Market participants believe that with geopolitical risks escalating again, the increase in market volatility has driven a greater need for capital to seek safety. Combined with policy tailwinds such as an increase in the proportion of state-owned central enterprises’ dividends, and the recent positive signals from dividend plans announced by multiple listed companies, the dividend strategy may benefit.

CITIC Securities (Xingye Securities) said that the cost-effectiveness of dividend assets’ allocation in April continues to improve at the margin. First, overseas geopolitical conflicts remain unresolved, and the quality of earnings during the reporting season still needs to be verified. Market risk appetite is narrowing, and dividend assets have become a widely shared defensive direction.

The Dividend Low Volatility ETF Huaxia (159547) (Fund of Funds, Class A 021482; Fund of Funds, Class C 021483) closely tracks the CSI Dividend Low Volatility Index (H30269.CSI). Among ETF products tracking the same index, it has the lowest overall fee rate. It selects 50 securities with good liquidity, continuous dividend payments, high dividend yields, and low volatility, covering industries such as banking, coal, and transportation. In volatile markets, it offers both defensive characteristics and dual advantages of cash-flow returns.

The Daily Economic News