Not only high dividends, but how much can a value of 100 really deliver?

When investors mention high-dividend investing, they often think of classic indices such as the CSI Dividend and CSI Low Volatility Dividend. After the CSRC Value 100 Index completed its quarterly rebalancing in March 2026, its dividend yield rose to 5.0%, higher than the CSI Dividend’s 4.7% and the CSI Low Volatility Dividend’s 4.6%. With its unique advantages in stock selection and rebalancing, the Value 100 Index achieves the goal of “enhanced dividends.” The Value ETF by E Fund (159263, fund link A/C: 025497 / 025498) that tracks this index has also become a focus for investors seeking steady returns.

1. Triple-factor resonance: not just high dividends, but double protection from valuation and cash flow

The fact that the CSRC Value 100 achieves a higher dividend yield than the CSI Dividend is not driven by a single factor. Instead, it uses a triple-factor screening approach of “high dividends + low valuation + free cash flow,” so that at a bargain price, investors can allocate to high-quality targets that can both pay high dividends and continue to do so.

On the basis of the dividend yield factor, adding a valuation factor allows the index to select “value-for-money” companies that have stronger profitability but are priced more cheaply among high-dividend firms. Free cash flow is the “backing” for a company’s continuous dividend payments. When combined with the free cash flow yield factor, it ensures that the dividends of selected constituent stocks are not funded by drawing down the company’s future growth momentum, but are supported by solid cash flows—making dividend sustainability stronger.

At present, the CSRC Value 100’s price-to-earnings ratio is 11.12x, which is low compared with similar indices. Its dividend yield is 5.0%, higher than 4.7% for the CSI Dividend and 3.3% for free cash flow. This “low valuation + high dividend” combination means investors can obtain relatively higher dividend returns at a comparatively cheaper price.

Dividend yield comparison of the index

Data source: Wind, as of March 23, 2026

Through triple-value-factor resonance, the CSRC Value 100 Index not only ensures its current high dividend level, but also—through low valuation and steady cash flows—reduces index volatility, achieving “dividends that you get now, and dividends that can continue to grow.”

2. Quarterly rebalancing mechanism: keep the high dividend ‘online’

The sustainability of high dividends is inseparable from a flexible rebalancing mechanism. The CSRC Value 100 adopts quarterly rebalancing rules, promptly removing stocks whose value-for-money has deteriorated, and adding new high-value names. Compared with the CSI Dividend’s annual rebalancing, Value 100, from an institutional perspective, ensures that the index’s high-dividend characteristic does not fade.

The rules of the CSRC Value 100 Index are to select high-quality companies with low valuation. These companies often, after being included, gradually rise as the market recognizes them. As the stock price lifts, the dividend yield is naturally diluted gradually. Just like before this March rebalancing, the Value 100 dividend yield was still 4.6%, basically on par with mainstream dividend indices.

But the real skill lies in Value 100’s “sell high and buy low” executed once every three months: as long as the stock price has become too expensive and the dividend yield is no longer attractive enough, regardless of how well the stock has performed before or how good the story sounds, it is simply replaced according to the rules. That is also why after each rebalancing, the Value 100 dividend yield can always “recover.”

Value 100’s “sell high and buy low” during quarterly rebalancing not only maintains the index’s high dividend yield, but—through disciplined rebalancing—also enables it to capture valuation-upside gains and avoid some of the risk of pullbacks in certain sectors. Take this March rebalancing as an example: for the constituent stocks removed this time, their average excess return versus the CSI 300 over the six months before being removed was 25.9%, while their average excess return after being removed was -4.7%.

Constituent-stock excess return comparison for Value 100 when removed

Data source: Wind, as of March 23, 2026

3. Long-term return verification: steady returns beyond high dividends

The excellent index construction logic and rebalancing mechanism ultimately translate into the Value 100’s strong long-term, steady return performance. Since the CSRC Value 100 Index was launched, its annualized return has reached 17.9%, with a Sharpe ratio of 0.85. Over the same period, the CSI Dividend’s annualized return was 11.1%, and the CSI 300’s was 6.9%. The long-term return advantage of Value 100 is evident.

From the holding experience perspective, historical backtests show that if you buy the CSRC Value 100 Index at any time and hold it for one year, the average return is 20.8%; the proportion of positive returns over a two-year holding period is 96.5%.

Data source: Wind, as of March 23, 2026

In investing, some people like to chase hot trends and play short-term games—yes, it’s stimulating, but it also easily leads to standing by at high levels; while others prefer to be calm and steady, not greedy for quick money. They rely on stable dividend payouts to lock in returns, and then make extra gains from company performance growth and valuation expansion—sleep well, and go farther.

The CSRC Value 100 Index is designed specifically for investors with this second mindset. High dividends are not a one-off flash of brilliance; within this rule set, they are the norm. It doesn’t chase the most lively narratives in the market, and it doesn’t bet on industry windfalls. Instead, it sticks to the iron rules of “high dividends, low valuation, and steady earnings.” Every three months, it helps you optimize the portfolio through rebalancing—replacing stocks with insufficient value, and bringing in more attractively priced ones—so it always maintains the ability of a basket of assets to deliver high dividend payments.

If everyone wants to set up this index with one click, you can also follow the Value ETF by E Fund (159263, fund link A/C: 025497 / 025498).