Many investors may hold a common misconception about dividend investing: the higher the payout amount, the greater the investment value. However, from a long-term perspective, the essence of dividend investing lies not in chasing a company's temporary generosity, but in securing consistent and sustainable dividend income over time.

Companies with excessively high payout ratios or highly volatile dividend amounts may appear attractive in the short term, but they often create an illusion of quality by overextending earnings or manipulating payout schedules. Such practices conceal significant uncertainty and represent classic high-risk dividend traps. The construction rules of dividend indices, however, are specifically designed to eliminate these traps at the source.

For instance, the CSI Dividend Index requires all constituent candidates to meet three key criteria: three consecutive years of cash dividends, a dividend payout ratio maintained within a reasonable range, and a ranking based on the average dividend yield over the past three years. These conditions systematically filter out companies with unsustainable or unstable dividend distributions, ultimately selecting 100 stocks for inclusion in the index.

A dividend index bundles a diversified portfolio of stocks, effectively mitigating the risk associated with individual stock volatility and serving as an efficient tool for ordinary investors to allocate dividend assets. For practical implementation, dividend index products offered by E Fund Management, including Dividend Low Volatility ETF (563020) with feeder funds (A/C/Y: 020602/020603/027261), Dividend ETF (515180) with feeder funds (A/C/Y: 009051/009052/022925), and Hang Seng Dividend Low Volatility ETF (159545) with feeder funds (A/C: 021457/021458), all adopt the market's lowest annual management fee tier of 0.15%, enabling investors to build dividend-focused positions at minimal cost.