Recently, the A-shares have entered a &#34;volatile mode,&#34; with the SSE Index fluctuating around 4000 points, and sectors like semiconductors, new energy, and oil and petrochemicals rotating rapidly like &#34;opening blind boxes.&#34; Don't panic, today I will recommend a &#34;calming pill&#34; for the volatile market—the &#34;Dividend +&#34; Index, which even beginners can easily grasp.
Many beginners feel that &#34;Dividend +&#34; is a profound and mysterious term, but the core is quite simple: it helps us pick out those good companies that can steadily make money in the long term without unnecessary fuss, saving us the trouble of stock selection, making it both convenient and reliable.
For example, the CSI Dividend Index is known as the &#34;high-dividend team,&#34; selecting the 100 companies with the highest dividends over the past three years. Those eligible are basically industry leaders with mature businesses and stable operations.
If you seek stability and fear market fluctuations, then the low-volatility dividend index is more suitable for you. It requires low volatility in addition to high dividends, maximizing defensiveness.
The CNI Free Cash Flow Index specifically looks for &#34;cash cow&#34; companies that are &#34;not short of money.&#34; These companies have enough idle cash to both distribute dividends and pursue expansion and development, providing more growth flexibility than a pure dividend index.
The CNI Value 100 is an &#34;all-rounder,&#34; scoring stocks comprehensively from the perspectives of &#34;affordable stock prices, high dividends, and ample idle cash.&#34; It offers both a high dividend &#34;safety cushion&#34; and growth aggressiveness, balancing and being effective.
Some may ask, what are the differences among these four indices? It mainly depends on three aspects: industry, valuation, and historical performance.
The CSI Dividend Index favors financial cyclical industries like banks and coal that can provide stable dividends; the low-volatility dividend index has nearly half of its composition in banks, also known as the &#34;small bank&#34; index; the CNI Free Cash Flow Index focuses on industries with abundant cash flow, such as automobiles and oil and petrochemicals; while the CNI Value 100 has a balanced distribution, with nearly 50% in the three major asset-heavy industries: home appliances, banks, and automobiles.
In terms of valuation, the CNI Value 100 offers good cost-performance, with a dividend yield of 4.9% and a price-to-earnings ratio of only 11.4 times, making it both cheap and dividend-paying; the CSI Dividend and low-volatility dividend indices have dividend yields of 4.6% and 4.5%, respectively, with price-to-earnings ratios just above 8 times; the CNI Free Cash Flow Index has a slightly lower dividend yield of 3.1% because it needs to retain some cash for company expansion, but it still outperforms the market and has growth potential, so its valuation is slightly higher at 15.7 times.
Now, let's talk about the historical performance that everyone is most concerned about. Looking back from 2013 to the present: the CSI Dividend and low-volatility dividend indices, focusing on stable dividend mature enterprises, have slightly lower annualized returns, but still around 12%; while the CNI Free Cash Flow and CNI Value 100, due to their comprehensive stock selection that balances growth and dividends, have annualized returns directly exceeding 18%, making long-term holdings quite rewarding.
How to invest? E Fund has four corresponding connection funds for the above four indices: CSI Dividend ETF Connection Fund (A/C/Y: 009051/009052/022925), CSI Dividend Low Volatility ETF Connection Fund (A/C: 020602/020603), CNI Free Cash Flow ETF Connection Fund (A/C: 024566/024567), and CNI Value 100 ETF Connection Fund (A/C: 025497/025498)
If you have a stock account, you can also directly buy the corresponding ETFs: Dividend ETF E Fund (515180), Low Volatility Dividend ETF E Fund (563020), Free Cash Flow ETF E Fund (159222), and Value ETF E Fund (159263), and the operation is very convenient.
Risk Warning: Funds carry risks, and investment should be cautious

中证红利

159222

159221

510880

000001

159201

510050

515080

Recently, the A-share market has entered a volatile mode, with the SSE Index fluctuating around 4,000 points. To cope with market fluctuations, the "Dividend +" index is recommended, suitable for novice investors. This index selects companies with long-term stable profits, such as the CSI Dividend Index, which focuses on high-dividend companies, and the CNI Free Cash Flow Index, which pays attention to companies with abundant cash flow. Different indices have their own characteristics in terms of industry, valuation, and historical performance, catering to investors with different risk preferences

腾讯新闻 - 财经

E Fund CNI Free Cash Flow ETF

Harvest CNI Free Cash Flow ETF

Huatai-PB SSE Dividend ETF

SSE Index

ChinaAMC CNI Free Cash Flow ETF

ChinaAMC China 50 ETF

China Merchants CSI Dividend ETF

A must-read for beginners: "Dividend +", investment secrets for a volatile market are here