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【Must-read for New Investors】Want 6% dividend yield but worried about 'earning dividends while losing on price'? Here are 3 hand-picked high-yield, high-return HK-listed ETFs—lowest entry barrier to 'copy the trade'

Dear investors, welcome to 'Futubull Takes You Flying!'

Earlier, we shared with you our selection of high-quality dividend stocks that offer both capital appreciation and income, which received an enthusiastic response from many readers. Recently, market volatility has increased, and numerous investors have expressed concerns: while they favor income-generating assets, they worry that holding just a single stock could expose them to the risk of 'earning dividends but losing more on price declines' due to company-specific operational issues. Many are now seeking lower-barrier, defensive investment tools that effectively diversify risk.

In today’s volatile market environment, high-dividend ETFs may be a worthwhile allocation tool for investors to consider.

💡 Must-know for investors: Top 3 'FAQs' about high-dividend ETFs

Before revealing our curated list, let’s clarify three core concepts behind high-dividend ETFs to help you better assess their risks and returns:

1. Since ETFs diversify risk, is there still a chance of 'earning dividends but losing more on price declines'?

The answer is: It still exists, but the risk has relatively decreased. ‘Earning dividends but losing on price’ refers to a situation where the dividends received by an investor fail to offset losses from a decline in the asset’s price.

– Risk of individual stocks: Holding only a single dividend-paying stock exposes investors to significant downside risk if the company’s performance deteriorates or industry regulations change, potentially eroding all dividend gains through price depreciation.

– ETFs’ defensive mechanism: ETFs diversify risk by holding a basket (dozens) of constituent stocks. Even if one or two holdings decline in price, the performance of the remaining constituents helps balance the portfolio, typically resulting in lower price volatility compared to individual stocks.

– Notes: ETFs are not principal-protected products. In the event of a systemic market downturn affecting the broader equity market, high-dividend ETFs will also be impacted. However, these ETFs usually hold constituents such as utilities, telecoms, and large banks—sectors with strong cash flows—and thus often exhibit stronger defensive characteristics during market declines.

2. How do income-focused ETFs achieve ‘monthly’ or ‘quarterly’ distributions?

ETFs themselves are not operating entities; their distributions primarily come from the dividends generated by their underlying holdings:

1. Collecting dividendsThe fund manager purchases a basket of high-dividend stocks according to the index weights. When these constituent stocks pay dividends, the cash flows into the ETF's trust account.

2. Regular DistributionsAfter deducting necessary expenses such as management and custody fees, the fund manager distributes accumulated dividends to investors on a predetermined schedule (e.g., monthly, quarterly, or semi-annually).

3. How do the underlying stock selection methodologies differ among high-dividend ETFs?

High-dividend ETFs available in the market employ different underlying stock selection methodologies:

– Chinese State-Owned Enterprise (SOE) ApproachPrimarily selects large Chinese SOEs listed in Hong Kong (e.g., in energy, telecommunications, and major banking sectors). These companies hold leading positions in their industries, maintain relatively stable dividend policies, and offer strong defensive characteristics.

– Local Traditional Income ApproachFocuses mainly on Hong Kong-based property developers, utilities, and local financial stocks, whose operations are closely tied to the local economy and offer high business visibility.

– Asia-Pacific Diversified ApproachThe investment scope has been expanded to regions including Taiwan, South Korea, and Singapore, incorporating Asia-Pacific tech and financial giants with strong growth prospects and a willingness to pay high dividends, helping to diversify single-market risk.

🏆 Real-World Copy-Trading: Top 3 High-Yield Hong Kong ETFs Compared

Futubull screened based on the Hong Kong market closing prices as of July 27, 2026, applying the following hard criteria:

– Assets under management (AUM) of HK$500 million or more (to ensure market liquidity)

– Last fiscal year (LFY) dividend yield of 6% or higher (to provide attractive cash flow)

– Ranked among the top three (TOP 3) by total return over the past 3 years (price appreciation + dividend reinvestment)

Below is the analysis of the screening results:

🥇 Rank #1: $Fubon Hang Seng Shanghai-Shenzhen-Hong Kong (Selected Corporations) High Dividend Yield Index ETF (03190.HK)$ —— Cross-border allocation with strong defensive characteristics

– 3-year total return：100.79%

– Dividend Yield (LFY)：6.52%

– Underlying Logic and PerformanceThis ETF spans the Shanghai, Shenzhen, and Hong Kong markets, primarily selecting leading state-owned enterprises with high-dividend characteristics. Benefiting from strong market inflows into the 'China-Specific Valuation (CSV)' theme in recent years, the ETF not only delivers consistent dividend income (historically paying dividends quarterly) but has also seen significant share price appreciation, delivering outstanding total returns over the past three years.

– Dividend Performance: It employs aquarterly dividendmechanism (typically distributing dividends in March, June, September, and December each year), making it suitable for investors seeking regular, high-frequency cash flows.

🥈 Runner-up: $Global X Hang Seng High Dividend Yield ETF (03110.HK)$ —— Traditional Local Income-Focused Allocation

– 3-Year Total Return：77.99%

– Dividend Yield (LFY)：6.04%

– Underlying Logic and Performance: Closely tracks the 'Hang Seng High Dividend Yield Index,' with holdings primarily in Hong Kong local banks, utilities, and local real estate stocks. These companies have demonstrated strong defensive characteristics in volatile market conditions, delivering a total return of 77.99% over three years—an impressive performance.

– Dividend Distribution Performance: Employs asemi-annual dividend distributionmechanism (typically paid in March and September each year). With a relatively low entry threshold, it is worth considering for investors planning to implement a regular monthly investment (dollar-cost averaging) strategy.

🥉 Third Place: $ChinaAMC Asia High Dividend ETF (03145.HK)$— Regional Diversification, Monthly Cash Flow

– 3-Year Total Return：61.36%

– Dividend Yield (LFY)：7.78%

– Underlying Logic and Performance: Primarily invests in Asia ex-Japan (e.g., Mainland China, Hong Kong, Taiwan, South Korea, Singapore, etc.), with holdings comprising large-cap technology and financial firms across the region. Due to its broad geographic diversification, the ETF exhibits stronger defensive characteristics, delivering a total return of 61.36% over the past three years.

– Dividend Performance: The key feature of this ETF ismonthly dividend payouts, with an attractive dividend yield of 7.78%, making it suitable for investors seeking monthly passive income.

⚠️ Investment Risk Notice:

1. Non-principal-protected asset: Although ETFs help diversify single-stock risk, their prices can still decline alongside underlying holdings during extreme market conditions.

2. Distributions are not guaranteedAn ETF’s distributions depend on the actual dividends paid by its underlying holdings; past dividend yields do not guarantee future returns.

💡 How to find relevant ETFs in the Futubull app?

If investors wish to screen or learn more about ETF products on their own, they can use the built-in features of the Futubull app: Open the Futubull app ➔ Tap 'Market' at the bottom ➔ Select 'ETF' ➔ Tap 'ETF Screener'.

In the screener, you can freely set filters such as 'Assets Under Management' and 'Dividend Yield' to quickly find investment tools that align with your defensive needs and income objectives.

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