Yesterday's high dividend market danced all day.Pragmatic888The floor price of the popular S & P dividend ETF (562060) closed up 1.33%, the daily line rose three times in a row, and the latest closing price was the highest since its listing. The S & P dividend ETF (562060) has risen by 14% since its inception on December 8, 2023, according to Wind.Pragmatic888.59%, the Shanghai Composite Index rose 6.91% over the same period, with significant excess returns.
What is the reason why the dividend strategy continues to strengthen in the new market environment? Hu Jie, fund manager of S & P dividend ETF (562060), issued the latest interpretation.
Hu Jie pointed out that the A-share market continues to maintain the stock game, resulting in a large amplitude of industry and style. Looking at 2024 as a whole, the market may pay more attention to the safe assets with cash-like attributes and low valuation attributes, and the style characteristics of "high dividend" and "low valuation" make the dividend strategy match the above attributes well.
What is the value of dividend strategy allocation at a new high? Hu Jie believes that global inflation is gradually falling at a high level, and various leading indicators indicate that the global economy is beginning to decline slowly. although the Chinese economy has some twists and turns, there may be a certain cycle dislocation between the global and Chinese economic cycle and currency cycle in 2024.
Under this environment, the valuation differentiation of A-share market is gradually repaired, and the market continues to look for "certainty". In the market environment where the overall valuation is at the bottom, the dividend yield of high dividend assets is still historically high, and the valuation level is very cost-effective. In the current market environment, it can strike a balance between defense and attack. It is suggested that investors should pay more attention to the absolute return ability of dividend strategies and the configuration opportunities of value-style products.
As of April 30, the dividend yield of the S & P A-share dividend index, the underlying index of S & P dividend ETF (562060), was 6.12%, while ROE was about 11%, according to the data.Pragmatic888About 8 times as much as 8% of the value PE, which is still in a valuation depression of great configuration value.
According to public data, the S & P dividend ETF (562060) passively tracks the S & P China A-share dividend opportunity Index (CSPSADRP). In the 19 years from 2005 to 2023, the cumulative return of the S & P A-share dividend total income index was as high as 1975.17%, with an annualized return of nearly 18%. Under the macro background of moderate slowdown in economic growth and downward risk-free interest rates, S & P dividend ETF (562060) shows outstanding allocation value with sustained and stable high dividends and cross-cycle profitability.
Data sources: Shanghai and Shenzhen Stock Exchange, Standard & Poor's Dow Jones Index, Wind, Warburg Fund, etc. The S & P A-share dividend total income index (which includes dividends of constituent shares) rose or fell in the past five complete years: 2019, 21.53%; 2020, 6.12%; 2021, 23.12%; 2022,-3.59%; 2023, 14.21%.
Risk Tip: the S & P dividend ETF passively tracks the S & P China A-share dividend opportunity Index (CSPSADRP), which has a base date of June 18, 2004 and a release date of September 11, 2008. the composition of the index stocks is timely adjusted according to the rules governing the compilation of the index. The risk level of the fund assessed by the fund manager is R3-medium risk, which is suitable for investors of balanced type (C3) or above. Any information that appears in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only and the investor is responsible for any discretionary investment behavior. In addition, any point of view, analysis and forecast in this article does not constitute any form of investment advice to the reader, nor is it liable for direct or indirect losses arising from the use of the contents of this article. The investment of the fund is risky, and the past performance of the fund does not represent its future performance.Pragmatic888The performance of his fund does not constitute a guarantee of the performance of the fund, so the fund should be cautious in its investment.
