Dividend ETF with low volatility, Huatai-PineBridge (512890): the half-day trading volume hits 310 million, leading its peers. Fund manager: High-dividend assets have become a scarce instrument amid “asset scarcity.”

On April 2nd, the market opened lower and declined throughout the morning, with the Shanghai Composite Index down 0.53%, and both the Shenzhen Component Index and the ChiNext Index falling over 1%. Against this backdrop, the Huatai-PineBridge Low Volatility Dividend ETF (512890) rose against the trend by 0.33%, closing at 1.201 yuan, with a turnover rate of 0.99%, and a half-day trading volume of 310 million yuan, ranking first among similar ETFs.

The latest report shows that the top ten holdings of the Huatai-PineBridge Low Volatility Dividend ETF (512890) experienced mixed gains and losses. By midday, Shanghai Bank fell 0.10%, Nanjing Bank remained unchanged, Ping An Bank rose 1.08%, Shanghai Rural Commercial Bank increased 0.87%, COFCO Sugar Industry declined 1.41%, China Minsheng Bank dropped 0.26%, Gree Electric Appliances fell 0.50%, Shaanxi Guao Power Equipment declined 1.27%, China Resources Jiangzhong rose 0.71%, and Changsha Bank fell 0.10%.

Huatai-PineBridge Fund’s Liu Jun stated in the 2025 annual report that in recent years, major state-owned banks and joint-stock banks have successively lowered deposit rates, bringing the one-year fixed deposit rate into an era of “breaking 1%,” while the yield on the 10-year government bonds remains at historic lows. In this context, high-dividend assets provide scarce, certain cash flow returns, becoming a natural tool to hedge against the “asset shortage,” and perfectly matching the liability duration and yield requirements of insurance funds.

Liu Jun pointed out that low-volatility dividend investing has certain cyclical resilience, but its absolute returns are still highly correlated with the overall market beta. Relative returns tend to underperform when growth styles are strong. Therefore, adding indicators to the basic dividend strategy for correction or enhancement is a worthwhile consideration. Viewing low-volatility dividend as a dividend enhancement strategy with added low-volatility factors can improve the risk profile of the basic dividend strategy, which tends to have high beta and high volatility, making it more advantageous from a relative return perspective.

CICC Securities noted that the defensive nature of the dividend sector is becoming more prominent. In the current environment of frequent geopolitical conflicts and weak global economic growth momentum, the certainty and defensive attributes of dividend assets have high allocation value. During this month’s market volatility, dividend assets overall declined significantly less than other style sectors, mainly benefiting from the rising risk aversion in the uncertain market environment.

As a stable asset allocation tool in turbulent markets, the Huatai-PineBridge Low Volatility Dividend ETF (512890) was established on December 19, 2018, with the benchmark: CSI Low Volatility Dividend Index yield. As of April 1, 2026, it has achieved a five-year return of 67.45%, outperforming the performance benchmark, ranking 64th among 956 funds. Fund manager Liu Jun has managed the fund since its inception, with a total return of 139.36% during his tenure. Investors can participate in the Huatai-PineBridge Low Volatility Dividend ETF (512890) through regular investment plans to smooth out volatility risks. Investors without stock accounts can also allocate via its off-exchange connect funds (Class A: 007466; Class C: 007467; Class I: 022678; Class Y: 022951).

Risk reminder: Funds are subject to risks; investments should be cautious. Past performance does not indicate future results. Before making investment decisions, investors should carefully read the fund contract, prospectus, and other documents, and invest rationally according to their risk tolerance.

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