HK ETFs focused on dividend-paying stocks are Exchange Traded Funds that invest primarily in high-dividend stocks listed on the Hong Kong Stock Exchange. These ETFs invest mainly in high-dividend stocks listed on the Hong Kong Stock Exchange by tracking specific dividend indices to achieve investment portfolio returns. For investors seeking stable returns and long-term capital appreciation, HK dividend ETFs are an attractive investment tool.

What are the advantages of investing in a dividend ETF?

• Stable dividend income: The main attraction of a Hong Kong dividend ETF is its stable dividend income. There are many high-quality companies in the Hong Kong market with good dividend records, and investing in a dividend ETF of these companies allows investors to receive regular dividends and provide higher returns than the market average.
• Diversified investment: Hong Kong dividend ETFs usually include multiple high-dividend stocks, and this diversified investment strategy can effectively reduce risk and minimize the impact of individual stock fluctuations on the overall investment portfolio.
• Low fees: Compared with traditional active management funds, ETFs usually have lower management fees. The passive index tracking strategy makes the operating costs of Hong Kong dividend ETF more economical, thereby enhancing investors' net returns.
• High liquidity: ETFs are listed on exchanges and investors can trade them like stocks. The high liquidity of Hong Kong dividend ETFs allows investors to adjust their portfolios at any time and flexibly respond to market changes.

What are the risks associated with investing in a dividend ETF?

• Market risk: While the Hong Kong dividend ETF invests in high dividend-paying stocks, these stocks are still subject to the overall market volatility. During a market downturn, the ETF's net asset value may decline significantly.
• Interest rate risk: The appeal of high dividend stocks is their high dividend yield. However, when interest rates rise, the yield on fixed-income assets also rises, thereby reducing the relative attractiveness of high dividend stocks and causing their prices to fall.
• Concentration risk in industries: The Hong Kong dividend ETF may have a high concentration in certain industries, such as finance and real estate. If problems arise in these industries, they may have a significant impact on the ETF's overall performance.
• Exchange rate risk: For a dividend ETF denominated in Hong Kong dollars, non-Hong Kong dollar investors need to consider the risk of exchange rate fluctuations. The exchange rate between the Hong Kong dollar and the investor's home currency may affect investment returns.

The Mainland-Hong Kong Red Dividend ETF

Hong Kong Connect Red Dividend ETF (513530.SH)

The Hong Kong Connect Red Dividend ETF (513530.SH), fully known as Huatai Baorui CS Equities Index Securities Investment Fund (QDII), is a dividend fund launched by Huatai Baorui Fund on February 24, 2022. According to the latest report as of March 31, 2024, the fund's asset size is 260 million yuan, and the share size is 233.44 million units. The top ten holdings of the fund at present are Orient Overseas International (00316.HK), China Shenhua (01088.HK), SeaLand Holdings (01308.HK), China Hongqiao (01378.HK), China Petroleum & Chemical (0386.HK), China Ocean Oil (0883.HK), CITIC Bank (0998.HK), Pacific Basin Shipping (2343.HK), Yanzhou Coal Mining (11711.HK), and China Merchants Bank (0398.HK). From the composition of its holding stocks, the Hong Kong Connect Red Dividend ETF mainly invests in energy sectors including coal and oil, as well as banking and shipping sectors.

H-Share Dividend ETF (159,691.SZ)

H-Share Dividend ETF (159,691.SZ), also known as the ICBC Credit Suisse CS Indices High Dividend Yield Select Exchange-Traded Fund, is a dividend fund launched by ICBC Credit Suisse Fund on March 13, 2023. According to the latest report as of March 31, 2024, the fund's asset size is 524 million yuan, and the share size is 53.03 million units. The top ten holdings of the fund at present are Orient Overseas International (00316.HK), China Shenhua (01088.HK), SeaLand International (01308.HK), China Petroleum & Chemical Corporation (00857.HK), China Petroleum & Chemical Corporation (0386.HK), China Ocean Oil & Gas (00883.HK), Pacific Basin Shipping (02343.HK), Yanzhou Coal Mining (11711.HK), China Taiping Insurance (02328.HK), and Zhoukun Port (00144.HK). From the composition of its holding stocks, the H-Share Dividend ETF mainly invests in energy sectors including coal and oil, as well as insurance and port businesses.

On April 29, 2024, H-Share Dividend ETF (159,691.SZ) paid out 0.0103 yuan per unit in dividends.

Hang Seng Dividend ETF (513950.SH)

Hang Seng Dividend ETF (513950.SH), also known as Fullgoal Hang Seng Hong Kong Stock Connect High Dividend Yield and Low Volatility Exchange-Traded Fund (QDII), is a dividend fund issued by Fullgoal Fund on April 3, 2023. According to the latest report as of March 31, 2024, the fund's asset size is 240 million yuan, and the share size is 26.062 million units. The top ten holdings of the fund at present are Yuehai Investment (00270.HK), Hang Lung Properties (00101.HK), Chongqing Rural Commercial Bank (03618.HK), Dongfeng Group Shares (00489.HK), Hang Lung Properties (00012.HK), COSCO Ports (00144.HK), Guangda Environment (00257.HK), Jiangsu Taiping Cement (00914.HK), China Shenhua (01088.HK), and East Asia United Holdings (03360.HK).

From the composition of its holding stocks, Hang Seng Dividend ETF has a wide range of investment areas and focuses on investing in stable dividend-paying stocks.

Its historical dividend distribution is as follows:

How to invest in Hong Kong stock dividend ETF using uSMART?

After logging in to the uSMART HK APP, click on the "Search" option at the top right of the page, enter the stock code you want to learn about, and you can enter the details page to learn about trading details and historical trends. Click on the "Trade" button at the bottom right, select the "Buy/Sell" function, fill in the trading conditions and unlock the trade. The picture operation guide is as follows: