QDII-LOF

Screening Filters

1. Monthly Average Dollar Volume ≥ 50,000

   • Purpose: Ensure the instruments found are reasonably liquid and tradable.
   • Rationale: QDII-LOF products (Chinese-listed funds investing in overseas assets) are typically exchange-traded and intended for regular trading by investors. Setting a minimum trading volume screens out illiquid or obscure funds/instruments that would not resemble a mainstream QDII-LOF product. This aligns results with vehicles that can actually be bought and sold without extreme slippage.

2. Themes: “Foreign Large Cap Equities”, “Global Equities”

   • Purpose: Focus on instruments that invest in international or global stocks, especially larger, established companies.
   • Rationale:
     • QDII-LOF funds are designed to allow domestic investors to access overseas markets. The “Foreign Large Cap Equities” and “Global Equities” themes capture funds and ETFs that provide exposure to non‑domestic, broad equity markets, similar to typical QDII-LOF mandates (e.g., US, Europe, global developed markets, etc.).
     • Many QDII-LOF funds track or reference major global/foreign indices dominated by large‑cap stocks, so this theme filter narrows the universe to funds with comparable geographic and market‑cap exposure.

3. Expense Ratio ≤ 0.8%

   • Purpose: Limit results to relatively cost‑efficient funds.
   • Rationale:
     • QDII-LOF products are usually compared on their ongoing fee levels; excessively high expense ratios are less typical for broad-market, index‑like QDII-LOFs.
     • A cap of 0.8% is a reasonable boundary to capture funds that are competitively priced in line with many diversified international or global equity funds, making them more comparable to standard QDII-LOF offerings in cost structure.

4. Annual Dividend Yield between 1% and 5%

   • Purpose: Target instruments that provide a moderate level of income from dividends, neither negligible nor excessively high.
   • Rationale:
     • Many QDII-LOF funds investing in global or foreign large‑cap equities will have a moderate dividend yield, broadly in this range, reflecting typical payouts from mature international companies and global indices.
     • Yields below 1% might indicate highly growth‑oriented or niche strategies not representative of standard QDII-LOFs; yields above 5% could point to specialized high‑yield or distressed segments that don’t match a typical diversified QDII-LOF risk profile.

Why Results Match:

• QDII-LOF is a structure for listed, open‑ended funds that invest overseas; the “Foreign Large Cap Equities” and “Global Equities” themes directly mirror this cross‑border, diversified equity exposure.
• The liquidity filter (≥ $50,000 monthly average dollar volume) aligns with the fact that QDII-LOF products are meant to be actively traded on exchanges, removing illiquid or obscure instruments.
• The expense ratio cap (≤ 0.8%) and moderate dividend yield range (1–5%) together focus on mainstream, diversified global or foreign equity funds with typical cost and income characteristics, making the screened instruments financially similar in profile and use case to QDII-LOF products.