On January 12, Huatai-PineBridge Fund announced that its SSE-SZSE 300 ETF will implement its first dividend distribution for 2026, with a proposed payout of 1.23 yuan for every 10 fund units.
The single dividend distribution amount for this domestic ETF is expected to set a new record.
According to Wind data, as of January 12, Huatai-PineBridge SSE-SZSE 300 ETF's latest size reached 437.35 billion yuan, with outstanding fund units totaling 89.509 billion. If the product's unit count does not change significantly before the ex-dividend date, this largest domestic ETF by size is expected to distribute a dividend exceeding 11 billion yuan.
Since its establishment in May 2012, Huatai-PineBridge SSE-SZSE 300 ETF has consistently paid dividends, accumulating 13 distributions totaling 16.576 billion yuan as of January 12. In June 2025, the ETF set the record for the largest single dividend payout by a domestic ETF at 8.394 billion yuan. This record is now poised to be broken just seven months later.
Beyond Huatai-PineBridge SSE-SZSE 300 ETF, several other broad-based ETFs have also shown notable dividend performance. For example, E Fund SSE-SZSE 300 ETF, ChinaAMC SSE-SZSE 300 ETF, and Harvest SSE-SZSE 300 ETF ranked second to fourth respectively in the 2025 dividend amount rankings, distributing 7.15 billion yuan, 5.554 billion yuan, and 5.394 billion yuan. Additionally, ETFs like ChinaAMC SSE 50 ETF, Southern China Securities 500 ETF, and Huaan SSE 180 ETF also featured prominently in total dividend payouts.
Zeng Fangfang, Public Fund Product Operations at Shenzhen Qianhai Paipaiwang Fund Sales Co., Ltd., commented, "Active dividend distributions by major broad-based ETFs can set a positive example, promoting the development of more mature ETF dividend mechanisms across the industry. This could encourage more broad-based ETFs to optimize their dividend frequency and ratio designs, and prompt dividend-focused ETFs to add regular dividend clauses. ETF product competition may shift from a pure scale contest to a comprehensive competition involving 'scale + dividends + tracking efficiency,' compelling fund managers to enhance their ability to deliver returns."
Across the entire market, ETF dividend growth has been significant.
In recent years, as the optimization of A-share dividend ecosystems extends to investment vehicles, total ETF dividends have grown markedly. Wind data shows that total ETF dividends across the entire market reached 45.013 billion yuan in 2025, an increase of over 112% compared to 2024.
In Zeng Fangfang's view, the rapid growth in ETF dividends is primarily driven by three factors: first, improved profitability of constituent stocks, with major broad-based index constituents like those in the SSE-SZSE 300 Index concentrating their dividend payouts, providing the fundamental source for ETF distributions; second, guided by policies like the new "National Nine Articles," ETF managers are actively distributing dividends to optimize investor returns; third, the influx of more medium- to long-term capital into the market is also contributing to the strengthening of ETF dividend mechanisms.
Cui Yue, an analyst at Morningstar (China) Fund Research Center, stated, "From the investor perspective, ETF dividends provide a superior option for groups with cash flow needs compared to investing in individual stocks. Relying on ETF dividends effectively reduces single-stock risk through diversified holdings, and the sources of ETF dividends are broader and more stable. Simultaneously, ETF dividends act as a conduit, transmitting the dividend income from listed companies to the vast number of ETF holders, allowing more ordinary investors to share in these profits."
"Looking ahead, the scale and frequency of ETF dividends are expected to increase further," Zeng Fangfang believes. She anticipates that dividend scales from leading broad-based ETFs will continue to grow, with billion-yuan-level payouts becoming more common, and more dividend-focused ETFs potentially instituting monthly or quarterly dividend mechanisms. However, beyond focusing on the single payout amount, investors should pay closer attention to the sustainability of dividends, tracking error, premium/discount rates, and the profitability of the underlying constituents.
"For dividend-focused ETFs, where dividend yield is the core strategy, the payout is largely the product's essential value proposition. But for other ETFs whose primary goal is tracking an index for capital appreciation, their core competitiveness remains focused on tracking accuracy, liquidity levels, and cost control; dividends are more of a byproduct generated during the passive index tracking process," Cui Yue remarked.
In the view of a relevant person from a large public fund company, the competitive logic within the public fund industry is shifting. It is no longer solely about competing on scale and short-term performance but increasingly about maintaining investor relationships through stable, sustainable dividends, conveying a long-term investment philosophy, and making the actual investor holding experience a core competitive differentiator.
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