--- title: "The Shanghai Composite Index fluctuates around 4000 points, and the dividend strategy becomes a preferred choice for risk aversion. This article decodes the \"volatility-resistant\" index gene of the China Merchants CSI Dividend" type: "News" locale: "en" url: "https://longbridge.com/en/news/282941346.md" description: "Since April, the Shanghai Composite Index has been fluctuating around the 4,000-point mark, with the market lacking a strong main line. In an environment of increased volatility, the dividend strategy, with its inherent anti-volatility properties, continues to attract capital inflows. The China Merchants CSI Dividend ETF (515080) has reached a scale of 9.209 billion yuan, setting a new historical high. The China Merchants CSI Dividend Index uses dividend yield weighting, avoiding chasing highs and selling lows, creating a \"buy low, sell high\" rebalancing effect, covering mature industries and effectively diversifying risks. Compared to other dividend indices, the China Merchants CSI Dividend sample space is broader, with dividend yield weighting highlighting high dividend characteristics and requiring high dividend stability" datetime: "2026-04-16T01:39:09.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282941346.md) - [en](https://longbridge.com/en/news/282941346.md) - [zh-HK](https://longbridge.com/zh-HK/news/282941346.md) --- # The Shanghai Composite Index fluctuates around 4000 points, and the dividend strategy becomes a preferred choice for risk aversion. This article decodes the "volatility-resistant" index gene of the China Merchants CSI Dividend Since April, the Shanghai Composite Index has been fluctuating around the 4,000-point mark, with the market lacking a strong main line. In an environment of increased volatility, the dividend strategy, with its inherent anti-volatility characteristics, continues to attract capital inflows. As of April 15, the **China Merchants CSI Dividend ETF (515080)** has reached a latest scale of 9.209 billion yuan, setting a new historical high, with a nearly 16% increase in assets over the past month. Through the index compilation scheme, it can be seen that the CSI Dividend Index tracked by this ETF is not simply a collection of high-dividend stocks; its compilation rules inherently contain the "anti-volatility" gene. **1.** **Dividend Yield Weighted, Naturally Industry Diversified** Unlike market capitalization-weighted indices, the CSI Dividend Index uses dividend yield weighting, which means that stocks with higher dividend yields have greater weights, and the weight of a single industry or stock is naturally constrained—because when the stock price of a certain industry rises sharply, causing the dividend yield to drop, its weight will automatically decrease; conversely, the weight of undervalued sectors that have fallen sharply will increase. This mechanism allows the index to avoid chasing highs and cutting lows, forming a "sell high, buy low" rebalancing effect. From the industry distribution perspective, the top five weighted industries in the CSI Dividend Index are banking (22%), coal (17%), transportation (14%), oil and petrochemicals (6%), and non-ferrous metals (5%), covering mature industries with abundant cash flow and stable dividends, and no single industry weight exceeds one-quarter, effectively diversifying industry risk. **2.** **What distinguishes the CSI Dividend Index from similar dividend indices?** Currently, there are several dividend indices in the A-share market, such as the Guo Zheng Dividend, CSI 300 Dividend, and CSI Dividend Low Volatility. The core differences of the CSI Dividend Index are: **1.** **Broader Sample Space:** Covers both the Shanghai and Shenzhen markets, making it more representative than a single market's dividend index. **2.** **Dividend Yield Weighted:** Compared to price-weighted or equal-weighted indices, it better highlights high dividend characteristics. **3.** **Dividend Stability Requirement:** Requires continuous dividends for three years with stable payout ratios, filtering out stocks with "one-off dividends." **4.** **Leading Historical Dividend Yield:** According to Huatai Securities, the CSI Dividend's dividend yields over the past three years were 6.20%, 5.04%, and 5.07%, and its dividend yield over the past 12 months also leads other dividend indices, highlighting its high dividend value among mainstream dividend indices in the A-share market. **3\. The "Shock Absorber" in Volatile Markets** Historically, the CSI Dividend Total Return Index often outperforms the market in bear and volatile markets. For example, in 2022, the CSI 300 fell over 20%, while the CSI Dividend Total Return Index only experienced a slight pullback. The underlying logic is that high-dividend assets provide certain cash returns, and in a declining interest rate environment, this "bond-like" attribute supports its valuation Data shows that as of April 25, the latest dividend yield of the CSI Dividend Index reached 4.94%, while the yield of ten-year government bonds has fallen to 1.783%, highlighting a "stock-bond yield spread" of over 3 percentage points, which underscores the high allocation value of the index. When market volatility increases, this portion of "visible" returns is expected to become a safe haven for funds. Moreover, the China Merchants CSI Dividend ETF (515080) has achieved a cumulative return of 102.18% since its establishment, with an excess return of 71.28% relative to its performance benchmark. In the context of a prolonged low-interest-rate environment and the major trend of residents moving their savings, dividend assets are expected to continue attracting long-term capital. Risk Warning: Funds carry risks, and investment should be approached with caution ### Related Stocks - [515080.CN](https://longbridge.com/en/quote/515080.CN.md) ## Related News & Research - [Reps. 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