Defensive nature of volatile market stronger! Low-volatility ETFs have attracted over 3.3 billion yuan in funds in nearly 20 trading days.

On October 31, the three major indices fell in half a day, with the Shanghai Composite Index dropping by 0.63% and the ChiNext Index falling by more than 1%. As a result, the low-volatility dividend ETF dropped by 0.34% to 1.186 yuan, with a turnover rate of 1% and a trading volume of 2.44 billion yuan, ranking first among similar ETFs. In terms of funds flow, the low-volatility dividend ETF saw a net inflow of 1.15 billion yuan in the past 10 trading days, 3.38 billion yuan in the past 20 trading days, and 3 billion yuan in the past 60 trading days. As of October 30, 2025, the circulation size of the low-volatility dividend ETF was 243.94 billion yuan. Zheshang Securities pointed out that there are signs of marginal slowdown in the growth rate of short-term margin balances, and the volatility of related highly elastic targets has begun to increase. The sustainability of positive feedback effects on popular stocks remains uncertain. Therefore, investors should maintain a high level of confidence in the slow bull market, while appropriately avoiding the exacerbation of volatility in high-priced sectors. Fund manager Liu Jun's third quarter report stated that looking ahead to the fourth quarter, the core variables affecting the trend of equity assets will focus on the changing trend of market risk appetite. Currently in the disclosure period of the third quarter report, coupled with external tariff disturbances, domestic economic fundamentals repair policies will still be the key factors affecting the market. Risk appetite may decline, and dividend strategies may have stronger defensiveness. In the face of market volatility, investors may consider using it as a stable income tool in asset allocation, diversifying entry through methods such as regular investment. Investors without stock accounts can also allocate through their off-exchange linked funds.