Yuanta Taiwan 50 (0050) DCA Investors Surpass 1.2 Million, Assets Exceed TWD 2.2 Trillion with Fee Cut to 0.07%

In June, the Taiwan stock market entered a consolidation phase at high levels, but the so-called 'Fourth Institutional Investor'—retail investors—remained confident in the market and continued buying Taiwanese stocks through ETFs. According to the latest monthly data from the Taiwan Stock Exchange on regular investment accounts, the top 20 ETFs collectively added over 230,000 new accounts. Yuanta Taiwan 50 (0050-TW) led the ranking with over 110,000 new accounts, bringing its total investor base beyond 1.2 million, solidifying its position as the top choice for long-term stock accumulation. As of July 8, 0050’s total assets surpassed TWD 2.2 trillion, and its management fee has been reduced to 0.07%. As assets continue to grow, the fee is expected to approach 0.05%, creating a favorable environment for long-term investors.

Reviewing the Taiwan Stock Exchange’s June regular investment rankings, 0050 once again topped the list with a monthly increase of 111,000 accounts. It has now recorded three single-month increases of over 100,000 accounts in the past year. With 1.204 million investors, it significantly outpaces the second-place Yuanta High Dividend ETF (316,000 accounts) and third-place Cathay Sustainable High Dividend ETF (00878-TW) at 315,000.

Analysts note that market-cap-weighted ETFs offer far greater capital appreciation potential than high-dividend ETFs. As of July 8, over the past three years, 0050 delivered a total return (including dividends) of 261.1%. In contrast, major high-dividend ETFs—0056, 00878, and 00919—achieved returns ranging from 117.17% (00919), 113.98% (00878), and 120.8% to 114.0%, roughly half of 0050’s performance.

Since its launch in 2003, 0050 has weathered over 23 years of market cycles, participating in the rise of the internet, smartphones, and artificial intelligence. Its index-based selection logic has been proven effective, delivering over 2,277% cumulative return since inception.

During the recent high-level consolidation of the Taiwan stock market starting in June, investors have been adding positions in the two market-cap leaders—0050 and 00631L—on market dips. These two ETFs attracted TWD 167.3 billion and TWD 65.9 billion, respectively. Over the first half of 2024, they drew in TWD 454 billion and TWD 194 billion, accounting for over 50% of total inflows into Taiwan stock ETFs.

0050 now has 3.27 million investors, with 1.2 million participating in regular investment plans. Over TWD 10 billion flows in monthly to buy large-cap stocks. This 'concentration of capital and concentration of holdings' has formed a powerful 'Fourth Institutional Investor' that supports the Taiwan stock market and is expected to be a key pillar in pushing the market toward the 50,000-point milestone.

*Disclaimer: The stocks, funds, and futures products mentioned in this article are for reference only and do not constitute investment advice. Investors should make independent decisions, carefully assess risks, and bear their own profits and losses.