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Countdown to Bond ETF Ex-Dividend: Annual Yield Exceeds 7%, Investment Insights

Countdown to Bond ETF Ex-Dividend: Annual Yield Exceeds 7%, Investment Insights

The first wave of bond ETF ex-dividend showcase for June has begun, with four bond ETFs announcing estimated dividends set for the first week of June. Overall, these ETFs present an average estimated annual yield of 6%. Among them, BBB-rated bonds excelled, with the top three monthly payout investment-grade bond ETFs being Shin Kong BBB Investment-Grade Bond 20+ (00970B), KGI A-Rated Corporate Bond (00950B), and Dahua Investment-Grade US Bonds 15Y+ (00959B), all achieving yields above 6.7%, with the highest reaching 7.4%.

According to analysts, Trump's policies have stirred volatility in the bond market. In April and May, uncertainties in the US economy rose due to the tariff war and tax reform, pushing public bond yields higher. However, the monthly payout investment-grade bond ETFs remained popular for their relatively high yields, with a growing number of beneficiaries.

Manager Liu Heng-Zhi of Shin Kong BBB Investment-Grade Bond ETF commented that despite the selloff of US dollar assets influenced by Trump's tariffs, the tax reform may improve the financial health of quality enterprises and increase profit opportunities. He noted that the fluctuations in the bond market present investment opportunities for those looking to hold bonds long-term or pursue stable income.

This year, the beneficiary count for US long-term public bond ETFs has dropped the most, while the counts for high-yield non-investment-grade and investment-grade bond ETFs have surprisingly increased. Notably, Shin Kong 00970B and Yuanta 00968B have demonstrated stable dividend characteristics, attracting beneficiary increases of 967 and 273, respectively, placing them in the top ten for net growth of beneficiaries. This indicates that BBB-level investment-grade bond ETFs with stable dividend profiles can still attract attention and capital in the market.