Recently, personal pension funds have expanded to include index funds for the first time. Among the 85 index funds initially included, 78 are broad-based index funds, while the remaining 7 are all dividend strategy index funds.

What characteristics do dividend strategy index funds have that make them the only type of index product included in personal pension funds besides broad-based indices?

In recent years, amid a volatile market environment, dividend strategies have attracted significant attention.

At the same time, China is actively promoting dividend payouts by listed companies. The new "National Nine Measures" explicitly propose to "increase incentives for high-quality dividend-paying companies and take multiple measures to improve dividend yields."

Under policy guidance, the number of A-share listed companies paying cash dividends and the total dividend amount have significantly increased in recent years. Listed companies' awareness of dividend payments continues to strengthen, and the overall dividend level has steadily risen.

Consistent and stable dividends help enhance investor returns, better support investors in adhering to long-term and value investing, and allow them to share in the medium- to long-term performance growth of listed companies. This aligns well with the long-term and stable allocation needs of pension funds.

Wind data shows that from December 31, 2004, to December 12, 2024—nearly 20 years—the CSI Dividend Index achieved an annualized return of 9.3%, an annualized volatility of 25.8%, and a Sharpe ratio of 0.45. Moreover, during market fluctuations, the net value drawdown of the dividend index is relatively small, demonstrating certain defensive attributes.

The inclusion of dividend index products in personal pension funds this time can provide pension investors with convenient strategic tools.