How to Choose High Dividend and Market Capitalization ETFs? Expert Analyzes Key Differences in Market Crash Performance

As the memory of April's market crash lingers, many investors are focusing on the differences in performance between high dividend and market capitalization ETFs. Expert Chen Chongming points out that while high dividend ETFs are typically regarded as more stable, they performed poorly during this particular crash, with market capitalization ETFs performing significantly better.
The key difference lies in the composition, as high dividend ETFs often lack major players like TSMC, which currently holds a 36.41% market share and is crucial during market interventions. TSMC's stock price surged from NT$785 in April to NT$970, boosting the performance of market capitalization ETFs, while high dividend ETFs fell alongside the market due to their lack of TSMC's support.
Chen advises investors not to rely solely on high dividend investments, especially during volatile market conditions, and suggests including some TSMC stocks in their portfolio to capture potential gains during market recoveries.