Reported 9 months ago
The Taishin High Dividend Taiwan Value ETF (00940) announced its first monthly distribution amount on June 26, 2024, with an annualized dividend yield of about 6%, showcasing its high dividend characteristic stock selection advantage in the Taiwan stock market. Analysts predict that with 00940 emphasizing value investing and displaying distribution capabilities, it may drive another high dividend ETF trend and open up a new battleground beyond performance based on dividends. The high dividend ETF market is heating up this year, with monthly payouts becoming standard. Out of eight high dividend ETFs established after Mega Taiwan Technology High Yield (00929), seven offer monthly distributions. With over 2 million investors collectively, 00929's $229.7 billion, 00940's $187.7 billion, and United Taiwan High Yield Momentum (00939) with $58 billion are the top three in terms of size. Analysts mention that despite 00939 and 00940 returning to issuance prices, at this stage, dividend sources will focus on dividend income. 00929 has participated in the recent uptrend in the Taiwan stock market, but considering the composition of net assets, continuous monthly dividend payments and the decrease in dividend yield due to the rise in technology stocks have left only $0.3 in realized capital gains to support the distribution rate. Regarding performance, as Taiwan stocks continue to challenge new highs, since June, 00940 focusing on value investing has risen by 4.4%, outperforming the tech-focused 00929 at 3.2%, and the momentum-driven 00939 at 2.8%. 00940's value investing appeal has attracted high attention from investors preferring lower risk since its fundraising, and after a regular adjustment of constituent stocks in mid to late May, electronics stocks decreased while financial stocks increased, resulting in a further decrease in overall P/E ratios. The number of investors and units issued since listing have both increased, indicating a positive outlook on ongoing value investing and a shift from short-term price differences to mid- to long-term dividend stock holding strategies. Advertisers remind that aside from the distribution rate, stock selection directly impacts investment performance, suggesting choosing products that align with one's investment preferences and being mindful that the distribution rate does not represent the return rate. The dividends received by ETFs from corporate dividend offerings are calculated in the net asset value daily, regardless of distribution, are part of investor equity, and the dividend amount is deducted from the ETF's net value, so it's wise to also pay attention to net value changes.
Source: YAHOO