Defying the Market with "Nine Consecutive Up Days"! Huabao S&P China A-Share Dividend ETF (562060) Attracts 890 Million Yuan Over 5 Consecutive Days, Institutions: High Dividend Logic Expected to Continue Providing Support

On March 17, the three major A-share indices surged then pulled back, with the market showing overall weakness and most sectors drifting into the red. Driven by risk aversion, high-dividend assets like banks strengthened again. Among them, the S&P A-Share Dividend Index demonstrated greater resilience, closing down slightly by 0.03%, with a nearly one-week gain of 1.66%, significantly outperforming the broader market and mainstream dividend indices. In a volatile market, it perfectly exemplifies the value of a “both offensive and defensive” allocation strategy.

Data source: Shanghai and Shenzhen Stock Exchanges, etc. As of March 17, 2026, past index performance does not predict future results.

The only highly popular ETF tracking this index—S&P A-Share Dividend ETF Huabao (562060)—performed exceptionally well, closing up 0.3%, achieving a “nine consecutive days of gains” with a subdued closing price of 0.666 yuan. Trading remained active, with the day’s turnover surpassing 339 million yuan, and the average daily turnover over the past week exceeding 240 million yuan, highlighting its liquidity advantage.

Data source: Shanghai and Shenzhen Stock Exchanges, etc. As of March 17, 2026.

Investor enthusiasm remains high, with data from exchanges showing that by March 16, Huabao’s S&P A-Share Dividend ETF (562060) had experienced net capital inflows for five consecutive trading days, accumulating over 890 million yuan in “funds attracted.” Under continued investor interest, the ETF’s latest size has exceeded 4 billion yuan, with a growth of over 70% this year, maintaining market attention and liquidity.

Data source: Shanghai and Shenzhen Stock Exchanges, etc. As of March 16, 2026.

Regarding constituent stocks, high-dividend assets are performing well across multiple sectors. Jian Sheng Group rose 7.38%, Sichuan Chengyu, CITIC Bank, and Oppein Home Group gained over 3%, Focus Media increased over 2%, and Bank of China, Mousse Group, Nanjing Bank, Huaxia Bank, and Hisense Home Appliances rose over 1%.

【Top 10 constituent stocks by gain in the S&P A-Share Dividend Index (March 17)】

Data source: Shanghai and Shenzhen Stock Exchanges, etc. As of March 17, 2026.

Why is the dividend strategy so popular at this moment?

Hu’an Securities pointed out that amid the rapid decline in global market risk appetite and rising risk aversion, funds are quickly flowing into stable sectors like large caps and dividends. The allocation is increasingly focused on certainty, with short-term stability and dividend market premiums continuing. Due to increased global market volatility and heightened risk-hedging demand, dividend assets like banks have stage-wise allocation value, and the logic of high short-term dividends is expected to continue supporting the market.

Rebalancing enhances “cost-effectiveness,” creating a truly “offensive and defensive” dividend portfolio.

In February 2026, the S&P A-Share Dividend Index underwent a regular rebalancing, adjusting 32 constituent stocks. After rebalancing, the index’s PE and PB ratios declined, while the dividend yield rebounded from 4.5% to 5.12%, with a median market cap around 20 billion yuan. Except for banks, no single sector exceeds 10% weight, maintaining a balanced sector structure, further enhancing defensiveness and diversification to maximize avoidance of sector cycle fluctuations.

【Sector distribution of the S&P A-Share Dividend Index】

Data source: S&P Dow Jones Indices, etc. As of March 17, 2026.

A “long-term red” gene that crosses cycles. Public data shows that from 2005 to the end of 2025, the total return index of the S&P A-Share Dividend Index achieved a cumulative return of 2738.15%, with an annualized return of 18.14%. It outperformed the CSI 300 Total Return and CSI 500 Total Return indices by excess returns of 2373% and 1994%, respectively.

Data source: S&P Dow Jones Indices, etc. The latest data for the index as of December 31, 2025, covering the period from January 1, 2005, to December 31, 2025. The total return index (including dividends) had the following annual gains: 2021, 23.12%; 2022, -3.59%; 2023, 14.21%; 2024, 14.98%; 2025, 18.95%. The constituent stocks are adjusted periodically according to the index rules. Past performance does not predict future results.

Bull market “sharpness” verified. The S&P A-Share Dividend Index focuses on 100 high-dividend A-share listed companies, with a portfolio characterized by high profitability, high quality, and low valuation. As of the end of February 2026, the index’s one-year return was 27.24%, significantly outperforming similar dividend indices, with an annualized Sharpe ratio of 2.47, demonstrating a strong risk-adjusted return.

Data source: S&P Dow Jones Indices, Shanghai and Shenzhen Stock Exchanges, etc. From February 28, 2025, to February 27, 2026. Dividend yield data as of February 27, 2026. Past index performance does not predict future results.

Looking ahead, amid rising global risk aversion, prolonged low-interest-rate environments, and increasing long-term capital allocation needs from insurance funds and others, dividend strategies’ allocation value will become even more prominent. For investors seeking a balanced offensive and defensive portfolio, the S&P A-Share Dividend ETF Huabao (562060) and its linked funds (Class A: 501029, Class C: 005125) could serve as a solid core holding for high-dividend assets and smoothing portfolio volatility.

Reminder: Recent market fluctuations may be significant; short-term gains or losses do not predict future performance. Investors should invest rationally based on their financial situation and risk tolerance, paying close attention to position sizing and risk management.

Fee disclosure: For Huabao S&P A-Share Dividend ETF linked Class A, purchase fees are 1.0% for amounts below 1 million yuan, 0.6% for 1-2 million yuan, and a flat 1,000 yuan for amounts above 2 million yuan; redemption fees within 7 days are 1.5%, between 7-30 days are 0.5%, and zero thereafter. For Class C, no purchase fee is charged; redemption fee within 7 days is 1.5%, zero beyond. Sales service fee is 0.3%. When subscribing or redeeming ETF units, agents may charge up to 0.5%. On-exchange trading costs are determined by the broker. Management fee is 0.5% annually, custody fee 0.1% annually.

Risk warning: This article is based on publicly available information but does not guarantee its accuracy or completeness. Content and opinions are derived from historical data analysis and do not guarantee future performance. The stocks mentioned are for illustration only and do not constitute investment advice. The Huabao S&P A-Share Dividend ETF and its linked funds passively track the S&P A-Share Dividend Index (CSPSADRP), which was effective from June 18, 2004, and published on September 11, 2008. Managed by Huabao Fund, the distributor does not assume responsibility for investment, redemption, or risk management. Investors should carefully read the fund’s legal documents, understand its risk-return profile, and choose products suitable for their risk appetite. The China Securities Regulatory Commission’s registration of the fund does not imply any judgment or guarantee of its investment value, market prospects, or returns. Past performance and NAV do not predict future results. Performance of other funds managed by the same manager does not guarantee future performance. Invest cautiously!