The MSCI Asia Pacific Select High Dividend Index achieved positive returns, and 3483 announced its first dividend distribution (dividend not guaranteed, can be distributed from capital).

After exploring the cross-market allocation and composition of the Asia Pacific high-dividend strategy, this article will focus on the historical performance and risk-return characteristics of the strategy, tracking the index through the E Fund (Hong Kong) MSCI Asia Pacific Select High Dividend Index ETF (3483). $E FUND (HK) MSCI Asia Pacific Select High Dividend Index ETF (03483.HK)$$E FUND (HK) MSCI Asia Pacific Select High Dividend Index ETF (83483.HK)$ It has announced its first dividend distribution.

Core highlights of the index: Regional diversification and returns.

As the 'shield' in a barbell strategy, the MSCI Asia Pacific Select High Dividend Index's core competitiveness is reflected in its regional diversification design and leading risk-return characteristics.

Regional diversification to smooth volatility: The index covers three major Asia Pacific high-dividend markets: Hong Kong, Australia, and Japan. Historical data shows that the correlation between these three markets is around 0.5, indicating significant diversification. Due to differences in economic cycles and dominant industrial structures across these markets, their high-dividend assets exhibit long-term convergence but vary in rhythm. This complementarity helps smooth out volatility from single markets or industries, enhancing overall portfolio stability.

Positive returns since 2021: In terms of historical performance, the MSCI Asia Pacific Select High Dividend Index has achieved positive annual returns for several consecutive years since 2021. This performance stands out among major Hong Kong stock dividend indices and Asia-Pacific dividend indices. Thanks to its focus on quality companies with relatively strong cash flows and the risk buffer provided by regional diversification, the index has demonstrated good resilience in different market environments.

Support from constituent stocks: From Hong Kong blue chips to regional leaders.

The index's strong performance is underpinned by the fundamentals of its constituent stocks. For instance, CNOOC $CNOOC (00883.HK)$ , China Construction Bank $CCB (00939.HK)$ Blue-chip stocks in the Hong Kong stock market, represented by companies like this, have long maintained relatively fixed dividend policies; NTT in the Japanese market $NTT (9432.JP)$ , KDDI $KDDI (9433.JP)$ and other telecommunications giants also exhibit high-dividend characteristics; financial institutions such as Westpac Banking Corporation in the Australian market $Westpac Banking Corp (WBC.AU)$ are similarly core targets for local high-dividend strategies. These leading enterprises distributed across the three major markets collectively form the underlying assets of the index dividend through relatively sound operations and cash flow.

Leading risk-return efficiency with attractive dividend levels

Compared with similar Asia-Pacific high-dividend indices, the MSCI Asia Pacific Select High Dividend Index demonstrates a clear advantage in risk-adjusted returns. Data shows that while achieving significant returns, the index maintains a relatively low level of volatility. This means that investors can achieve similar or higher returns while bearing relatively less price fluctuation, which is crucial for the 'shield' portion of assets focused on returns.

From the perspective of dividend yield, the overall dividend yield of this index is roughly equivalent to that of high-dividend indices in the Hong Kong stock market. Since its base date (August 31, 2016), the average dividend yield of the index has been approximately 6% (Bloomberg data, December 31, 2025). Against the backdrop of the current global low-interest-rate environment, this coupon level offers significant allocation value.

First dividend distribution

The E Fund (Hong Kong) MSCI Asia Pacific Select High Dividend Index ETF (3483.HKThis marks the product's initial dividend payout since its inception, representing a phased achievement. For investors seeking continuous cash returns, this dividend not only validates the strategy’s effectiveness but also translates dividend income into tangible returns.

The E Fund (Hong Kong) MSCI Asia Pacific Select High Dividend Index ETF (3483.HK) provides investors with a convenient one-stop allocation tool, eliminating the need to individually research stocks across the three major markets. Through a single ETF, investors can capture dividend returns from leading Asia-Pacific companies like PetroChina, Toyota Motor, and BHP Group Ltd, serving both defensive and yield-enhancing roles in their portfolios.

Important Information: The issuer of this content is E Fund Management (Hong Kong) Co., Ltd. This content does not constitute an invitation or recommendation to invest in fund units. Dividend payouts are not guaranteed, and sub-fund distributions may be paid from capital. Investors should be aware that distributions paid from capital are equivalent to returning or extracting part of the investor’s original investment or any capital gains generated by such original investment, and such distributions will result in an immediate reduction of the relevant unit's net asset value. Investment involves risks, and fund prices can go up or down. Before investing, investors should carefully read the fund prospectus (including the “Risk Factors” section) for investment risks related to the fund. This content has not been reviewed by the Securities and Futures Commission of Hong Kong. For detailed important notices and disclaimers regarding the above fund, please visit the E Fund (Hong Kong) website: E Fund (Hong Kong) MSCI Asia Pacific Select High Dividend Index ETF (3483).https://www.efunds.com.hk/tc/products/47/important/

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