Balancing offense and defense, uncover the core dividends of Hong Kong stocks! Fullgoal Hang Seng Hong Kong Stock Dividend ETF opens for subscription on March 24!

From the technological wave sparked by artificial intelligence to profound changes in the macro interest rate environment, the investment logic of the capital market is ushering in a new paradigm.

In the AI era characterized by rapid technological iteration,the HALO strategy (High Asset, Low Obsolescence)is becoming increasingly prominent. This strategy focuses on sectors such as energy, power grids, telecommunications, and infrastructure, which possess substantial physical assets and business models that are not easily disrupted by technology. Companies in these fields boast irreplicable physical moats, showcasing rare certainty amidst change. The high-dividend segment of Hong Kong stocks is a typical representation of this strategy, with"high asset + high dividend"dual advantages, making it an excellent choice for resisting technological disruption and allocating stable assets.

Amidst increasing market volatility, high-dividend assets with consistently stable cash flows exhibit both defensive and income-generating attributes, becoming a core target for active allocation by investors.

To this end, Fullgoal Asset Management (Hong Kong) Co., Ltd. (referred to as: Fullgoal AM (Hong Kong)) has launchedThe first HKEX ETF —— $Fullgoal HangSeng HK High Dividend ETF (03031.HK)$ ，An efficient and convenient investment tool designed for investors to gain one-click exposure to core dividend assets in Hong Kong stocks. This product will open for subscription from March 24 to 26, 2026, and officially list on the Hong Kong Stock Exchange on March 31.Subscription opens from March 24 to 26, 2026, and officially lists on the Hong Kong Stock Exchange on March 31.

I. Basic Product Information

II. Investment Advantages

2.1 The index’s average dividend over the past five years has been as high as 7.2%, with stable payouts.

The Hang Seng High Dividend Low Volatility Index tracked by the fund focuses on high-quality stable dividend distribution as its core screening criterion, and selects listed companies with the highest net dividend yield over the past year. The index adoptsafter-tax dividend per share to calculate the net dividend yield,which more accurately reflects the actual dividend income investors can obtain. Historically, since 2021, the index dividend yield has remained at a relatively high level of over 7.2% on average, with constituent stocks' payout ratios mainly distributed in the 20%-60% range, demonstrating resilient dividend performance.

2.2 Unique low volatility factor, with medium- to long-term historical returns significantly higher than its peers.

The index, based on high dividend yields, adds a low volatility screening factor, and historical results show that it has a larger excess return compared to pure high dividend indices.

– Outstanding excess contribution: The index tracked by this fund is a cumulative dividend index that considers reinvestment returns. Over the past 3/5 years, it rose by 92.75%/91.12%, far exceeding the Hang Seng Stock Connect High Dividend Index’s 71.90%/9.84% and the Hang Seng Index's 49.86%/22.88%, showcasing the superiority of the low volatility factor.

– Demonstrates forward-looking risk avoidance capability:For instance, in the March 7, 2022 index rebalancing, the Hang Seng Stock Connect High Dividend Low Volatility Index removed six mainland real estate stocks at once, accounting for approximately 11% of the weight, preemptively avoiding potential risky sectors. Historical data shows that the rebalancing actions of the low volatility index displayed significant defensive advantages, outperforming comparative indices, validating the effectiveness of the low volatility factor in identifying and avoiding fundamental risks.

2.3 Diversified individual stock sectors, diversified sources of dividends

The Hang Seng Stock Connect High Dividend Low Volatility Index differs from other broad market or sector indices' 'total market cap/free-float weighting' method by adopting a 'net dividend yield weighting' approach for its 50 securities, with an individual security cap of no more than 5%. Overall, it exhibits characteristics of large-cap style with diversified individual stocks and industries.

– Diversified individual stocks, low concentration of weights:According to the March 2026 rebalancing results, the current index constituent weights are mainly concentrated within the range of 1.3%-3.0%. The combined weights of the top five and top ten constituents are 14.56% and 26.20%, respectively, with lower concentration compared to other high dividend indices.

– Diverse sectors, diversified sources of dividends:The diversified dividend income sources across sectors such as energy, utilities, consumer goods, and banking indicate resistance to being overly affected by a single industry. According to the Hang Seng Secondary Industry classification, banking, industrial transportation, utilities, real estate, and food & beverages account for 17.1%, 12.5%, 12.3%, 8.5%, and 10.1% respectively. Additionally, industries like construction, food & beverage, and telecommunications are also included. This diversified sector allocation ensures that dividend income is not easily impacted by the economic conditions of a single industry.

– The market leans towards large-cap stocks, with strong operational stability: The index primarily consists of companies with a market capitalization exceeding 100 billion, with 21 companies having a market cap above 100 billion, accounting for a weight of 41.30%. Companies with a market cap between 50 billion and 100 billion hold a weight of 20.53%. Combined, these two groups account for over 60%, showcasing the index’s large-cap characteristics. Large-cap enterprises possess more mature business models and steadier cash flows, providing solid support for dividend payouts.

3. Risk warnings

Disclaimer:

This document is for informational purposes only and does not constitute an offer or solicitation to buy or sell any investment products, nor does it provide any advice or recommendations. The information contained herein does not consider your specific investment objectives, financial situation, or personal needs, and should not be relied upon as a substitute for professional advice. You should seek independent professional advice before making any investment decisions.

Investment involves risks, including the possible loss of principal. Past performance is not indicative of future fund returns. The value of fund units can go up or down, and future returns are not guaranteed. Fund shares listed on exchanges are traded at market prices, which may differ from net asset value. Investors should read the fund's offering documents, including its prospectus and risk disclosures, before investing. You can access Hong Kong-related fund information at the following website https://www.fullgoal.com.hk/ (content on this website has not been reviewed by the SFC).

This material is issued by Fullgoal Asset Management (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong. Some information in this document is derived from third-party sources believed to be reliable, but we make no representation or warranty regarding its accuracy, completeness, or timeliness.

This document is issued exclusively for persons within jurisdictions authorized to distribute the fund. It may not be reproduced or copied without prior permission. This communication is not directed at U.S. persons, nor should it be acted upon by U.S. persons.

Index Provider Disclaimer:

The index is published by Hang Seng Indexes Company Limited, and Fullgoal Asset Management (Hong Kong) Co., Ltd. has been authorized to use and quote the index for the relevant ETF. Hang Seng Indexes Company Limited expressly disclaims any warranty or responsibility for the accuracy, completeness, merchantability, or fitness for a particular purpose of the index. It also bears no legal liability for any loss arising from the use of the index or related products. For the full version of the index disclaimer, please refer to the relevant fund prospectus.

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