Hedge funds increasing their positions receive backing from securities firms, and the low-volatility ETF Huatai Bairui has a return of over 52% in the past five years.

On July 14th, the market bottomed out and rebounded, with all three major stock indexes closing in the red. The Shanghai Composite Index rose by 1.36% and the ChiNext Index rose by 3.43%. Boosted by the market, the low volatility dividend ETF Huatai Bairui rose by 1.15%, closing at 1.139 yuan with a turnover rate of 2.7% and a trading volume of 9.21 billion yuan, ranking first among similar ETFs. In terms of fund flows, the low volatility dividend ETF Huatai Bairui has long been favored by funds. In the past five trading days, there was a net inflow of funds of 620 million, in the past 20 trading days, there was a net inflow of funds of 1.85 billion yuan, and in the past 60 trading days, there was a net inflow of funds of 4.75 billion yuan. As of July 13, 2026, the ETF had a circulation size of 34.012 billion yuan. Statistics show that as of the end of the first quarter of 2026, insurance funds held a total of 641 A-shares, with a net increase of 24 shares from the end of 2025, and a net increase of approximately 4.24 billion shares. Bank stocks are the focus of increased holding. Several leading insurance companies have stated that they will continue to allocate undervalued, high dividend, and promising long-term equity securities in response to the requirements of medium and long-term funds entering the market, utilize the "patient capital" advantage of insurance funds, strengthen the absolute income orientation, optimize the equity holding structure, and enhance the long-term stability of investment performance under the new accounting standards. Guosen Securities pointed out that overall, there will be a short-term rebalancing phase in A shares, but the likelihood of a style reversal is low. Looking ahead, the upward trend of A shares remains unchanged, and July will be an important observation window. In terms of structure, the internal growth of technology is expected to spread to lower levels, focusing on pharmaceuticals, finance, and resource-related industries. GF Securities believes that dividends are assets with a relatively thick safety cushion. The dividend yield in June has risen to about 5.2-5.65%, while the crowding factor has dropped to about -1.5 to -1.1 standard deviations, reaching an extreme level compared to technology assets. Overseas liquidity is expected to tighten in the second half of the year, and dividends, as short-duration assets, still have a low sensitivity to rising discount rates. Price spread from silicon-based to carbon-based, marginal improvement in profit expectations for dividend-weighted industries, are all on the path of benefiting from "price spread". Investors can consider allocating the low volatility dividend ETF Huatai Bairui as a core holding, and investors without stock accounts can also allocate through its off-exchange linked funds.