New Investing Trends: Indices** are on the rise
In the long-term evolution of financial markets, index investment is gradually becoming the focus of investors' attention, and as a passively managed investment tool, the characteristics of indexes** to track specific market indices are recognized worldwide. In the U.S. market, the history of index investing has been more than 60 years. The market share of the U.S. passive index has risen steadily, and after years of development, the size of the index surpassed that of active management for the first time in March 2021. According to Morningstar statistics, as of December 31, 2023, the size of the U.S. index** reached 10$6 trillion, while the scale of active management** is 777 trillion dollars, the ratio of the two is 136:1, with an annualized compound growth rate of 15 from 2000 to 202335% and 477%。The historical size of the Dividend Passive** Index is the ratio of all passive indices**
Data Date: December 1999 to December 2023 Data**: Morningstar China's passive index** market started on March 15, 2003 and has been in development for nearly 20 years. According to the statistics disclosed in the periodic report, the scale of the passive index is about 207 trillion yuan, while the scale of actively managed** (including ordinary**, index-enhanced, partial stock hybrid and flexible allocation) is about 409 trillion yuan. It can be seen that the recognition of the domestic passive index ** market has gradually improved, and the overall scale has grown at an annualized compound growth rate of 33 from the end of 2003 to the end of 202383%。In addition, we also observe that the scale growth of the passive index** is still relatively stable under the market. In terms of quantity, domestic public offering institutions are more enthusiastic about the issuance of passive index **, and the annualized compound growth rate of the number of passive index ** is 3628%。The double growth of investors' subscription scale and the number of public offerings** products shows that passive index** has been fully recognized by the market.
**Type passive index** scale (100 million yuan) and Wind all-A trend
Data date: March 2003 to December 2023 Data**: According to the statistics of **periodic reportsSo, what are the reasons for the continuous increase in the number and scale of passive exponential types**? First of all, its lower cost advantage cannot be ignored. Index** typically attracts investors with relatively low management fees, which are more costly from a long-term investment perspective. According to statistics, most passive indices** have a management fee of 05%, while most active management** have an administrative fee of 1About 2%. In addition, the portfolio of an index** is usually open and transparent, and investors can know the holdings they are investing in** based on the index constituents at any time. Dividend Investment Strategy: A New Choice for Classic Value Investment
In index investment, dividend investment, as a classic type of smart beta strategy, occupies an important position, especially in recent years. As a classic investment method, the dividend investment strategy originated in the American market in the 90s of the last century. Nowadays, the dividend strategy has become a value investment strategy in the international market. In China, since the introduction of the valuation system with Chinese characteristics, the dividend strategy has once again been favored by investors, especially institutional investors. From a financial point of view, dividends are the way in which a company shares profits with shareholders and is usually paid out in cash or **. Compared with stock price fluctuations, dividends are more stable and provide investors with tangible returns, as the metaphor of "a bird in hand" says. The dividend strategy pays more attention to profitability and dividend policy, and practices the concept of value investment. Unlike strategies that simply pursue stock price appreciation, dividend strategies focus more on the company's profitability and willingness to continue to pay dividends. The dividend strategy is in line with the concept of value investing, which aims to build a portfolio of stable returns by selecting companies with a good track record of profitability and dividend potential. The goal of the dividend investment strategy is to provide stable cash flow for the product, and strive to help investors withstand market fluctuations and pursue long-term income goals. During economic downturns, high dividends** tend to be more resilient, helping to reduce overall portfolio risk. Therefore, the dividend investment strategy is an investment strategy that takes into account both returns and risks, and is suitable for investors who pursue a sound investment. With the development and improvement of China's capital market, the dividend investment strategy will usher in a broader space for development. The domestic dividend passive index** originated in 2006, and the period from 2017 to 2020 is the intensive issuance period of the dividend index**. The share of dividend indexes** in all indexes** has also steadily increased during this period. Although the money-making effect of the equity market will decline in 2022 and 2023, the dividend style will strengthen against the market, which has attracted great attention from the market. Historical size of the Dividend Passive Index** and the proportion of the total passive index**
Data Date: 31 December 2023 Data**: Statistical remarks on disclosure of data based on **periodic report: Exclusion of ETF connection**Dividend Low Volatility 100 Index: Two-factor effective resonance
Strive to build the best city ballast
The Dividend Low Volatility 100 Index (930955), as a smart beta strategy that integrates dividend investing and low volatility factors, is attracting more and more investors' attention. The Dividend Low Volatility 100 Index focuses on dividend investing, i.e. selecting companies with consistent and solid dividend returns. The goal of this strategy is to provide investors with relatively stable cash flow and provide a certain amount of income protection in the event of volatility. At the same time, the Dividend Low Volatility 100 also uses a low volatility factor, that is, those assets with low volatility are selected. This factor helps to improve the stability of the portfolio and reduce investors' anxiety when the market is volatile. In addition, the Dividend Low Volatility 100 uses "dividend yield divided by volatility weighted" instead of the usual "free float market capitalization weighted", which makes the high dividend yield and low volatility ** weighted higher, which further enhances the dividend income and income stability of the portfolio. The dividend strategy is superimposed with the risk filtering ability of the low-volatility strategy, which helps to give the portfolio higher stability, and the combination of the two is a strong combination, and the two-factor effective resonance strives to build the "ballast stone" of the first market. In the long run, the dividend index has the ability to cross the cycle, and in the past three years, the defensive attribute of the dividend factor is highlighted, and after the superposition of the low wave factor, the shock absorption effect is strengthened and the performance is better than that of the following indexes. 
In a market environment with declining long-term interest rates and many uncertainties, the dividend low-volatility strategy is still highly attractive due to its high defensiveness and low volatility. First of all, the economic wave repair, uncertainty at home and abroad still exists, and the overall macro environment is still conducive to the operation of the dividend strategy. Second, the policy encourages and guides listed companies to pay dividends and create conditions for dividend investment. Finally, since 2021, China's interest rate pivot has continued to decline, while the dividend yield of A-share listed companies has shown an upward trend. During the period of low interest rates, the attractiveness of bonds decreased, the cost performance of dividend returns increased, and the value of dividend strategy allocation gradually emerged. Bank of Communications Schroder CSI Low Volatility 100 Index Investment** (Class A 020156 Class C 020157) is on sale, which adopts the method of passive investment and will closely track the Dividend Low Volatility 100 Index to add dividend investment tools for investors, investors can pay more attention. Risk Warning (Swipe up or down to see all).
This article is mainly used for investor education, and the services and content related to financial products are provided by Bank of Communications Schroders**.
Dividend Low Volatility 100 (All) Index performance over the years: 1326%
*There are risks and investment should be cautious.
Disclaimer: **Research and analysis do not constitute investment advice or advisory services and do not constitute investment advice. The remarks posted on this account only represent personal views and are not used as a basis for buying and selling. Please carefully read the relevant legal documents and risk disclosure statements and pay attention to the unique risks, make rational investments based on your own risk tolerance, and choose investment varieties suitable for your own risk tolerance. The manager undertakes to manage and use the assets in good faith, diligence and due diligence, but does not guarantee a certain profit, nor does it guarantee a minimum return. China's market development time is relatively short, can not reflect all stages of market development, past performance does not predict its future performance, the manager management of other performance does not constitute a guarantee of performance.
This is the **type**, and the proportion of investment in the constituent stocks (including depositary receipts) and alternative constituent stocks (including depositary receipts) of the CSI Dividend Low Volatility 100 Index is not less than 90% of the net asset value, and it is exposed to systemic risks and risks in the equity asset market due to investment in equity assets; the risk that the return of the underlying index deviates from the average return of the market; the risk of volatility in the underlying index; **Risk of deviation of portfolio returns from the return of the underlying index; the risk of changes in the underlying index; Tracking error controls the risk of not reaching the agreed target; the risk that the index compiler will cease to provide services; the risk of suspension of trading in constituent stocks, etc. For other risk disclosures, please refer to the Risk Disclosure section of the prospectus! Investment is risky, please carefully read the relevant legal documents and pay attention to the unique risks of this **, and choose investment varieties suitable for their own risk tolerance.