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ESG Investment

Hang Seng High Dividend 30 Index ETF

Stock code: 3466

Hang Seng High Dividend 30 Index ETF (the “Fund”) offers both listed class of Units (“Listed Class Units”) and unlisted classes of Units (“Unlisted Class Units”). Switching between Unlisted Class Units and Listed Class Units is not available.

(Capitalised terms used herein but not otherwise defined will have the same meanings as defined in the Hong Kong Offering Document of the Hang Seng Investment Index Funds Series II (the “Series”) and the relevant Appendix of the Fund)

Applicable to both Listed Class Units and Unlisted Class Units:

  • The Fund is an index-tracking fund that seeks to provide investment returns for investors that match, before fees and expenses, the price return performance of the Hang Seng High Dividend 30 Index (the “Index”) as closely as practicable.
  • The Fund is subject to investment risks, equity market risk, dividend risk, concentration and Mainland-related securities risks, mid-capitalisation companies risk, passive investment risks, tracking error risks, termination risks, reliance on the same group risk, risks associated with investment in financial derivative instruments, risk of investing in other collective investment schemes and new index risks.
  • Investors of Listed Class Units and Unlisted Class Units are subject to different pricing and dealing arrangements and may be at an advantage or disadvantage depending on market conditions. The Net Asset Value per Unit of each of the Listed Class Units and Unlisted Class Units may be different due to different fees and cost arrangement applicable to the units.
  • The Manager may at its discretion pay dividend out of capital or effectively out of the capital^ of the Fund. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any such capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the Net Asset Value per Unit.

^The Manager may at its discretion pay distribution out of gross income while charging/paying all or part of the Fund’s fees and expenses to/out of the capital of the Fund (resulting in an increase in distributable income for the payment of distribution by the Fund), and thereby effectively pay distributions out of the capital of the Fund.

Risks applicable to Listed Class Units only: 

  • The Listed Class Units of the Fund is subject to Net Asset Value and Price fluctuations and reliance on market maker risks.

Risks applicable to Unlisted Class Units only:

  • The Unlisted Class Units of the Fund is subject to currency and exchange rate control risk and, where applicable currency hedging risk.

Investments involve risks and investors may lose substantial part of their investment in the Fund. Investors should not only base on this material alone to make investment decisions, but should read the Fund’s offering documents (including the full text of the risk factors stated therein) in detail.

Why Hang Seng High Dividend 30 Index ETF?

Attractive and Consistent Income Stream

More Frequent Dividend Distributions than Individual Stocks

Prudent Index Constituent Selection
(Tracking the Hang Seng High Dividend 30 Index)

Attractive and Consistent Income Stream1

Dividend yield of the Hang Seng High Dividend 30 Index is consistently higher than that delivered by the Hong Kong broad market (Hang Seng Composite Index as reference) in the past 5 years.
Dividend Yield –
Hang Seng High Dividend 30 Index vs
Hang Seng Composite Index
2025 YTD Average Yield
7.41%

More Frequent Dividend Distributions than Individual Stocks2

Unlike Hong Kong listed stocks which usually pay dividends quarterly or semi-annually, the Hang Seng High Dividend 30 ETF targets to provide monthly dividend distributions, offering more frequent income opportunities.

Hang Seng High Dividend 30 Index ETF:

Monthly Dividend Distribution

Hong Kong listed stocks:

Quarterly / Semi-annual Dividend Distribution

Prudent Index Constituent Selection3

The Hang Seng High Dividend 30 Index aims to reflect the performance of 30 high dividend yield securities in the Hang Seng Large-Mid Cap (Investable) Index.
Base Index:

Hang Seng Large-Mid Cap (Investable) Index

Index Constituent Selection

1 Ensure Liquidity And Efficient Tracking
Six-month average daily turnover >= HKD 20 million
2 Avoid Large Price Movements
Exclude top 10% of securities in terms of one-year historical volatility
3 Support Sustainable Payouts
Dividend paid record for the latest three consecutive fiscal years
4 Prevent Yield Traps
Securities which meet the below two conditions will be screened out:
  1. Price dropped by >50% over past 12 months and
  2. Last 12-month price performance ranked in bottom 10%

Select Top 30 Securities by Net Dividend Yield

Hang Seng High Dividend 30 Index

Index Performance4

Hang Seng High Dividend 30 Index
Annualised Returns
1 Yr
3 Yrs
5 Yrs
23.4%
4.4%
3.8%
Calendar Year Performance
2025 YTD
2024
2023
2022
2021
2020
6.1%
25.2%
-8.6%
-13.6%
3.7%
-8.7%

Index Information5

Index Industry Weightings

Top Holdings5

#
Company Name
Industry
Index Weight
1
China Feihe Limited
Consumer Staples
5.54%
2
PCCW Limited
Telecommunications
5.25%
3
Far East Horizon Limited
Financials
5.21%
4
Hang Lung Properties Limited
Properties & Construction
4.25%
5
China Minsheng Banking Corp., Ltd.
Financials
4.23%
6
Uni-President China Holdings Ltd.
Consumer Staples
4.22%
7
C&D International
Properties & Construction
4.16%
8
ICBC
Financials
3.90%
9
Link REIT
Properties & Construction
3.87%
10
CITIC Bank
Financials
3.85%

Fund Information

Key facts

Investment Objective

To provide investment returns for investors that match, before fees and expenses, the price return performance of the Hang Seng High Dividend 30 Index (the “Index”) as closely as practicable.

Stock Code
3466
Listing Date
7-Apr-25
Listing Exchange
The Stock Exchange of Hong Kong Limited (the “SEHK”)
Issue Price
15
Lot Size
400
ISIN Code
HK0001121091
Base Currency
HKD
Trading Currency
HKD
Management Fee
Up to 0.55% per annum in respect of the Listed Class only
Total Expense Ratio (TER)6
0.85%

Underlying Index Information

Underlying Index
Hang Seng High Dividend 30 Index (price return version)
Launch Date
14-Mar-25
Base Value
3000
Review Frequency
Annually
Rebalance Frequency
Annually
Bloomberg Code
HSHD30
View the detail product information

FAQ

Dividend can offer investors the potential for consistent income and a hedge against economic uncertainty. While growth stocks, such as those in the tech sector benefiting from artificial intelligence advancements, may offer explosive potential, dividend-paying stocks can balance out market volatility with their defensive characteristics.

This is particularly relevant in markets like Hong Kong and China, which are known for their sensitivity to policy shifts, such as regulatory crackdowns. These shifts can lead to significant market fluctuations.

By combining a mix of growth and dividend stock strategies, investors can invest in a barbell approach. This approach not only harnesses the potential for capital gains from growth stocks but also captures the steady and more predictable cash flows offered by dividend-paying companies. This balanced approach helps investors navigate market volatility and potentially enhance their overall returns.

For example, this index can serve as a complementary addition to a portfolio already containing the Hang Seng Index and the Hang Seng Tech Index. Incorporating this index into a portfolio has the potential to enhance overall performance, reduce volatility, and increase dividend yield.

We have adopted a prudent and conservative approach for estimating the Fund's expected income. This approach considers several factors, including but not limited to:

  • Stability of dividend yields in pre-rebalance periods
  • Backtesting results of index constituents
  • Impact of special dividends

To avoid excessive capital payouts and ensure long-term sustainability, a robust review trigger control mechanism will be in place to monitor and adjust income projections as needed.

Hang Seng High Dividend 30 Index comprises only 30 constituent stocks, making it relatively more concentrated on securities with higher dividend yields. The Hang Seng High Dividend 30 Index ETF targets to provide monthly dividend distributions, whereas most similar ETF products in the market distribute dividends quarterly or semi-annually, providing investors with the opportunity to more frequent income opportunities.

[1]

Source: Hang Seng Investment, Hang Seng Indexes Company Limited , as of 14 Mar 2025. The annual dividend yield is calculated based on the average daily dividend yield for that year. 2025 YTD average yield is calculated based on the average daily dividend yield for 1 Jan 2025 - 14 Mar 2025. Dividend yield refers to index dividend yield, which is derived from back-testing data. Hong Kong broad market refers to the Hang Seng Composite Index. There is no guarantee of regular distribution of dividends and, if dividend is paid, the amount being distributed.

[2]

Source: Hang Seng Investment, Bloomberg, as of 31 Dec 2024. Frequency of Hong Kong listed stock dividend distributions was measured in 2024. Only cash dividends paid in Hong Kong dollars were taken into consideration. 58.8% of Hong Kong listed stocks pay dividends quarterly or semi-annually. There is no guarantee of regular distribution of dividends and, if dividend is paid, the amount being distributed.

[3]

Source: Hang Seng Indexes Company Limited. The Index is reviewed in May using data as of end-March and rebalanced annually in June. Please refer to Hang Seng Index website for latest details : https://www.hsi.com.hk/

[4]

Source: Hang Seng Investment, Hang Seng Indexes Company Limited, as of 14 Mar 2025. Index launch date is 14 Mar 2025, index performance reflects price return, which was derived from back-testing data.

[5]

Source: Hang Seng Investment, Hang Seng Indexes Company Limited, as of 14 Mar 2025.

[6]

Source: As the fund is newly established, this figure is an estimate only and represents the sum of the estimated ongoing expenses chargeable to the units over a 12-month period expressed as a percentage of the estimated average NAV of the units over the same period. The actual figures may be different from the estimate. Please refer to the “Fees and Expenses” section in the Prospectus for details. This figure may vary from year to year.

Disclaimer

The mark and name “Hang Seng High Dividend 30 Index" are proprietary to Hang Seng Data Services Limited ("HSDS") which has licensed its compilation and publication to Hang Seng Indexes Company Limited ("HSIL").  HSIL and HSDS have agreed to the use of, and reference to, the Hang Seng High Dividend 30 Index by Hang Seng Investment Management Limited ("the Issuer") in connection with the Hang Seng High Dividend 30 Index ETF (the "Product").  However, neither HSIL nor HSDS warrants, represents or guarantees to any person the accuracy or completeness of the Hang Seng High Dividend 30 Index, its computation or any information related thereto and no warranty, representation or guarantee of any kind whatsoever relating to the Hang Seng High Dividend 30 Index is given or may be implied.  Neither HSIL nor HSDS accepts any responsibility or liability for any economic or other loss which may be directly or indirectly sustained by any person as a result of or in connection with the use of and/or reference to the Hang Seng High Dividend 30 Index by the Issuer in connection with the Product, or any inaccuracies, omissions or errors of HSIL in computing the Hang Seng High Dividend 30 Index.  Any person dealing with the Product shall place no reliance whatsoever on HSIL and/or HSDS nor bring any claims or legal proceedings against HSIL and/or HSDS in any manner whatsoever.  For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker or other person dealing with the Product and HSIL and/or HSDS and must not be construed to have created such relationship.

The content does not constitute any express or implied advice or recommendation by HSIL for any investments. HSIL and the Issuer are subsidiaries of Hang Seng Bank Limited which are part of the group of companies under HSBC Holdings plc (“HSBC Group”). Potential conflicts of interest may arise between HSBC Group member(s). To reduce and avoid such conflicts of interest, each of the HSBC Group members has its independent management structure and each entity acts independently and on an arm’s length basis.

The content is prepared by Hang Seng Investment Management Limited (“HSVM”). The content shall not be changed or modified and the content shall not be used in any other manner unless with the prior written consent of HSVM. At the time of publication of the content, certain information of the content is obtained and prepared from sources which HSVM believes to be reliable, and HSVM does not warrant, guarantee or represent the accuracy, validity or completeness of such information. Under no circumstances shall the content constitute a representation that it is correct as of any time subsequent to the date of publication. HSVM reserves the right to change the content without notice. The content is for reference only and is the view of HSVM and does not constitute and should not be regarded as an offer or solicitation to anyone to invest into any investment product. You should read the relevant investment product’s offering document (including the full text of the risk factors and charges stated therein). Investment involves risks (including the risk of loss of capital invested), prices of investment product units may go up as well as down, past performance is not indicative of future performance. A positive distribution rate (if any) does not imply a positive return. Fund award (if any) is for reference only and does not guarantee any fund performance or the performance of HSVM. If you have any doubt about the content or investment product (including its offering document), you should seek independent professional financial advice. HSVM will not be liable to anyone for any cost, claims, fees, penalties, loss or liability incurred if the content is improperly used. The content shall not be duplicated or stored or distributed or “Hang Seng Investment Management Limited”, “恒生投資管理有限公司”, “恒生投資管理”, “恒生投資”or any marks containing these names shall not be used without the prior written consent of HSVM. HSVM and Hang Seng Indexes Company Limited and other index companies (collectively “Index Companies”) are separate and independent entities, HSVM’s views and opinions do not represent the views or opinions of the Index Companies and HSVM cannot influence Index Companies on any matter. Where the investment products referred to in the content have been authorized by the Securities and Futures Commission or the China Securities Regulatory Commission or other regulators (as the case may be), such authorization is not a recommendation or endorsement of the investment products and does not guarantee the commercial merits of the investment products or their performance. It does not mean the investment products are suitable for all investors nor is it an endorsement of their suitability for any particular investor or class of investors. The content has not been reviewed by the Securities and Futures Commission.