As everyone knows, this year has been dominated by growth styles, with hard tech particularly strong. Since July, indices have surged all the way up, market sentiment has warmed, and the noise about a "bull market" has grown louder.

In most people's view, what to buy in a "bull market" must be sharp tech sectors with high momentum or financial sectors that directly benefit from the recovery in trading volume.

Dividends, as a typical "counter-cyclical variety," rise less in bull markets and fall slowly in bear markets. In an environment where people are a bit impatient for gains, they obviously don't stand out much.

However, investors still need to allocate a portion of their assets to dividends to hedge against potential market risks. After all, in a market above 3600 points, every 10% increase exposes more risk.

Therefore, in the current context of growth style dominance and high market sentiment, allocating to dividend products may seem "untimely," but actually holds hidden wisdom.

Dividend SOE ETF (510720): 16 Consecutive Months of Dividends

The Dividend SOE ETF (510720) tracks the SSE State-Owned Enterprise Dividend Index, focusing on high-dividend central and state-owned enterprises, with a high index dividend yield.

This ETF is also one of the first dividend-class ETF products in China to contractually stipulate monthly assessment of income distribution. Subject to meeting fund dividend conditions, income distribution can be arranged. As of August, the Dividend SOE ETF has paid dividends for 16 consecutive months.

Cash Flow ETF: Historically Outperforms Dividends Long-Term

The Cash Flow ETF (159399) tracks the FTSE China A Share Free Cash Flow Focus Index, which strictly selects the top 50 stocks by cash flow rate. Large-cap stocks carry a relatively high weight, with stocks having a total market cap of over 100 billion RMB accounting for about 70% of the weighting. This ETF is also contractually stipulated to assess dividends monthly. As of August, the Cash Flow ETF has paid dividends for 6 consecutive months.

Furthermore, current market liquidity remains loose, with the one-year fixed deposit rate falling below 1%. Against the backdrop of the Fed entering a rate-cutting cycle and domestic efforts to stabilize growth, the liquidity environment is more likely to loosen than tighten. In comparison, assets with high dividend yields and high payout characteristics have significantly increased their appeal to investors.

Interested investors can keep an eye on the Dividend SOE ETF (510720) and the Cash Flow ETF (159399).