Reported 6 months ago
Recently, three ETFs have suspended primary market creation, and investors who wish to buy in should pay attention to the premiums. Fubon Investment Trust announced on July 11 that the primary market creation of Fubon Taiwan 50 (006208) would be suspended from July 12 to 15. This is the third ETF to halt primary market creation recently, following Cathay Han Tech (00735) and FT Taiwan Smart (00905). When primary market creation is stopped, investors cannot exchange the ETF's underlying stocks for ETF units, so the number of ETF units will not increase. The halt ensures that the total units of the ETF remain stable or decrease, avoiding additional units participating in the distribution. Investors should be cautious of premiums as chasing high-dividend ETFs can lead to increased premiums and potentially reduced high dividends.
Source: YAHOO