TAIPEI (Taiwan News) — More than 30 equity and bond ETFs in Taiwan will be ex-dividend on Thursday (Oct. 17).
Four of the ETFs will distribute dividends exceeding NT$1 (3 cents). These include Fubon Taiwan Small-Mid Cap Alpha Momentum 50 ETF (00733) with a dividend of NT$1.321, Fubon Dow Jones Taiwan High-Quality Dividend 30 ETF (00730) with NT$1.3, Yuanta Taiwan Dividend Plus (0056) ETF with NT$1.07, and Cathay MSCI Taiwan Leaders 50 Select ETF (00922) with NT$1, per CNA.
An ETF (Exchange Traded Fund) is a type of investment fund that tracks a specific market index issued by investment management firms. ETFs offer exposure to various industries or themes, making them less susceptible to the price fluctuations of individual stocks, according to Cathay Securities.
Calculated based on Tuesday (Oct. 15) closing prices, the annualized dividend yields of CTBC TIP Customized Taiwan Smart Factor 50 ETF (00912), Mega Taiwan IT Growth and High Dividend Equal Weight ETF (00943), and 0056 are 13.02%, 11.89%, and 10.95%, respectively. These yields exceeded the 10% threshold.
Among the ETFs going ex-dividend Thursday, over 20 are bond ETFs. The top five in terms of dividend payout are:
- Cathay EM USD Investment Grade ex China Coupon 5.5% 5Yr+ 10% Country Capped ETF (00726B) with NT$0.62
- Cathay High Yield ex China Cash pay 1-5 Year 2% Issuer Capped ETF (00727B) with NT$0.57
- Yuanta US 20+ Year BBB Corporate Bond ETF (00720B) with NT$0.51
- Cathay 15+ Year Utility Bond Select ETF (00782B) with NT$0.5.
- Cathay BBB Corporate bond ex China Coupon 4.5% 10Yr+ 20% Sector Capped ETF (00725B) with a dividend of NT$0.685, ranking first with an annualized dividend yield exceeding 7%.
ETFs blend the trading of stocks with the diversification of mutual funds. They allow investors to buy a basket of securities, typically from a specific industry, using their existing brokerage accounts.
Different compositions make up ETFs based on their investment goals. Index ETFs are baskets of stocks that automatically adjust to follow a specific index.
The 0050 invests in the 50 largest Taiwanese companies listed on the stock market. It’s rebalanced quarterly, with underperforming companies replaced to maintain the index.