High-Yield Strategy Product Booms in Low-Interest Rate Era

Recently, many banking apps and public accounts have been actively promoting high-yield strategy products. The high-yield strategy (also known as high-dividend strategy) is a value investment strategy that selects stocks based on dividend yield as the core indicator. It is understood that high-yield strategy products usually consist of fixed-income assets with a base layer, configuring high-yield assets to enhance returns. Products with a high proportion of high-yield assets will have a higher risk level.

The current market return rates for such products are generally between 2.4% and 3.4%, while some high-yield asset allocation products can achieve annualized returns exceeding 9%

For the selection of this type of product over funds, financial managers believe that the key is to look at the underlying logic. In general, investment products are more stable than funds, but still need to be specifically identified based on product characteristics.

Similarly, banking financial managers also recommend fund products, stating that from a term perspective, some high-yield strategy products have a certain closure period during which it is difficult to redeem, unlike placing funds in a liquid account or similar 7-day closed-end product. In addition, you can also consider fund products, which tend to be relatively transparent.

In fact, high-yield strategy products are still the most popular products pushed by many banks under their financial subsidiaries.