The first batch of CSI Dividend Growth ETFs were submitted for approval, marking another innovation in dividend funds.
According to industry sources, on September 29, several fund managers, including E Fund Management, China Asset Management, Fullgoal Fund Management, Southern Asset Management, Wan Jia Fund Management, China Merchants Fund Management, HFT Investment Management, and Caitong Securities Asset Management, submitted applications to the China Securities Regulatory Commission (CSRC) for the issuance of CSI Dividend Growth ETF products.
It is understood that this is the first batch of ETF products tracking the CSI Dividend Growth Index in the market, marking another expansion of dividend strategy index products.
Anchored to "continuous dividend growth"
Typically, dividend-style indices are closer to value indices, but this dividend growth ETF is different.
It is understood that the CSI Dividend Growth Index, tracked by these ETFs, is positioned for A-share dividend growth strategies, primarily reflecting the overall performance of listed companies with continuous dividend growth . When selecting its constituents, the index focuses on listed companies with a strong historical record of dividend growth and high potential for further dividend growth. The index considers both the certainty of dividends and future growth potential, a key characteristic that distinguishes it from traditional dividend indices that solely emphasize high dividend yields.
Industry insiders point out that the constituent stocks of the CSI Dividend Growth Index are mainly companies that conform to the characteristics of China's economic development, possess solid operating fundamentals, stable cash flow generation capabilities, and mature profit models. This caters to the needs of investors who value dividends and those who seek growth.
Dividend demand continues to rise
In recent years, the dividend payout ratio of A-share listed companies has steadily increased, and investors have also received better dividend returns than in the past, driving the market towards new, better and better development.
Against the backdrop of the continued popularization of the three major concepts of "long-term investment, value investment, and rational investment", high-quality assets with high dividends and sustainable dividend characteristics are increasingly favored by various investors, and the demand for dividend-paying assets from medium- and long-term funds and patient capital has increased significantly.
Data shows that there are currently 55 dividend ETFs on the Shanghai Stock Exchange, with a total scale of 181.7 billion yuan, of which more than 80% are domestic.
Following the major investment trend
Industry analysts believe that the launch of the CSI Dividend Growth ETF has multiple positive implications. For investors, it transforms the continuously increasing dividend-paying capacity of listed companies into stable returns that investors can sustainably share, providing an innovative dividend strategy tool.
On the market side, this will help attract more medium- and long-term funds and patient capital, encouraging these investors to increase their equity allocation and enhance the inherent stability of the capital market.
On the industry side, it balances investors' dual needs of pursuing growth and obtaining cash returns, and uses product innovation to drive market attention to investor returns.
Currently, all of the aforementioned ETF products are in the approval and application stage, and the subsequent issuance timetable depends on further clarification of the review process.
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