Issues in Taiwan's ETF Market: Central Bank Highlights Risks of High Dividend Strategies
Recently, Taiwan's ETF market has caught the attention of the Central Bank due to certain investment trusts employing high dividend strategies to attract investors. While this tactic may initially draw in capital, the Central Bank is concerned that such practices could harm the long-term interests of investors.
The Central Bank indicated that these high dividend strategies might mislead investors regarding the actual returns of ETFs, potentially impacting market stability. In this environment, investors need to carefully assess the risks and rewards of these products and remain vigilant.
