Dividend Fund Net Values Approach All-Time Highs as Three Factors Drive Rally

Recently, the A-share market continued to adjust, with growth sectors that previously led the market facing significant pressure and returning earlier gains. As capital risk appetite contracted, the market shifted back to seeking 'certainty.' In this context, an asset class long overlooked has re-entered focus: dividend-themed funds anchored in banks, coal, and utilities, whose net values are collectively approaching or even surpassing historical highs. Looking at index products focused on dividends alone, on October 12, the CCB CSI 300 Dividend ETF's unit net value hit a new high since its inception seven years ago at 1.6854 yuan, delivering a year-to-date return of 5.84%. The Guotai SSE State-Owned Enterprise Dividend ETF and Galaxy SSE State-Owned Enterprise Dividend ETF briefly dipped after refreshing their records on August 31 but recently surged again, approaching their previous highs by just 0.03 yuan, with year-to-date returns of 13.99% and 13.88%, respectively. Industry insiders attribute the strength of dividend funds to three main factors: first, the interest rate environment has enhanced the relative attractiveness of dividends; second, the allocation demand from long-term capital continues to be released; and third, the institutional foundation for dividend distribution is being steadily strengthened. (Securities Times)