Investors are actively buying the dip! The net subscription amounts for Yuanta Taiwan 50 (0050) and Yuanta High Dividend (0056) have both exceeded 100 billion this year, accounting for about 60% of total Taiwan stock ETF purchases. According to statistics from the stock exchange, as of April 28 this year, the net subscription amounts for 0050 and 0056 were 129.9 billion and 105 billion respectively, totaling 234.9 billion and comprising 59.5% of the entire Taiwan stock ETF market.

0050, the first market capitalization-based ETF in Taiwan, directly reflects the market capitalization changes of its constituent stocks in its performance, allowing for efficient participation in the Taiwan stock market. This year, adjustments are being made to the fee structure and split proposals, with future fee rates being reduced to 0.08% for amounts exceeding 5 trillion. Additionally, the execution of the split will significantly lower the entry barrier for new investors.

On the other hand, 0056, Taiwan’s first high dividend ETF, has withstood numerous adverse events since its establishment in 2007 and has maintained a steady record of consecutive dividends for 15 years. As of April 28, 0056 has a distributable yield of 4.12 and a capital reserve of 3.01, indicating a solid foundation for future dividends.

Yuanta Investment Trust highlights that ETFs offer benefits such as risk diversification and regular portfolio adjustments, encouraging capital to shift from individual stocks to ETFs. The stock exchange reported that among the top ten regular investment accounts, nine are Taiwan stock ETFs, indicating a continuous trend towards ETFs.

It is important to note that 0050 and 0056 are fully concentrated on Taiwan stocks, carrying the systemic risk of a single market. Investors should have comprehensive financial planning to avoid excessive exposure to losses in a single year. Nonetheless, periods of significant market correction present attractive opportunities to invest in high-quality Taiwanese companies that show operational resilience and relatively high dividend payout advantages compared to global markets.

Investors should also pay attention that participating in ETF dividends does not guarantee total returns; dividends paid by the companies are factored into the daily net asset value, and whether or not they are distributed belongs to the investors. During ex-dividend dates, the amount will be deducted from the net asset value, so changes in net value should also be monitored.