What does the dividend index fund mean?
A brief understanding, we all know that the general index is a basket of stocks selected according to certain rules, while index funds buy exactly the same basket of stocks according to the rules of the index.
Knowing the index fund, it is not difficult to understand the dividend index fund, which mainly invests in stocks with high dividends and more dividends. Divided into on-site funds and off-site funds. Buying on-site dividend index funds requires opening on-site fund accounts, and off-site dividend index funds can be purchased on various sales platforms, such as Alipay, WeChat, brokers and banks.
There are four common dividend indices:
1 Shanghai Stock Exchange Dividend Index: Select 50 stocks with the highest average cash dividend rate in recent two years.
Dividend index of Shenzhen Stock Exchange: Choose stocks with high cash dividend yield but only 40 constituent stocks.
3 CSI dividend index: At the same time, the stocks with the highest average cash dividend rate in the past two years were selected from Shanghai Stock Exchange and Shenzhen Stock Exchange, and the number of constituent stocks was expanded to 100.
4 Dividend Opportunity Index: This is the dividend index developed by S&P Company around A shares.
On the whole, the constituent stocks of the dividend index are mostly companies in the consumer, financial and real estate industries, and most of them are blue chips. But don't think that dividend index funds buy blue chips and feel stable if they have dividends. In fact, the income of dividend index fund may not be in the forefront of the index, nor may it outperform the actively managed stock fund, which needs to be adjusted according to the actual situation.