High-Dividend ETFs Emerge as Earthquake-Resistant Safe Havens; Government-Backed Funds Aggressively Buy 0056, 00961 and Other Targets

After Taiwan's stock market suffered its largest single-day drop in history last Friday, market volatility remains elevated. On Monday, the index swung nearly 1,000 points intraday before closing down 221.57 points at 42,449.70. Amid high volatility and margin deleveraging selling pressure, capital is refocusing on defensive, 'earthquake-resistant' assets. Multiple high-dividend ETFs declined significantly less than the broader market, emerging as safe havens. Notably, government-backed institutional investors are aggressively buying into ETFs such as 00961, 0056, and 00929, serving as a key market sentiment indicator.

Following last Friday’s historic market plunge, volatility has yet to subside. On Monday morning, the index briefly rebounded over 400 points, reclaiming the 43,000-point level. However, margin reduction and deleveraging selling pressure resurfaced, causing intraday swings of nearly 1,117 points. The market closed down 221.57 points at 42,449.70. While heavyweight tech stocks such as TSMC (2330-TW) and Hon Hai (2317-TW) provided some support, selling pressure was heavy in small- and mid-cap stocks, memory, mature process, and passive components sectors, leading to a highly fragmented market. This divergence has prompted investors to refocus on defensive, resilient assets.

In this high-volatility environment, high-dividend ETFs have become a key safe-haven choice due to their dividend income, diversified holdings, and relatively low volatility. Over the past month, the weighted index fell 8.64%, while several high-dividend ETFs posted significantly smaller losses. The Yuanta Taiwan High Dividend Low Volatility ETF (00713-TW) led with only a 2.43% decline. The Mega International High Dividend 30 ETF (00918-TW) followed with a 3.38% drop. The UBS Taiwan High Dividend Momentum ETF (00939-TW) and FT Taiwan Sustainable High Dividend ETF (00961-TW) fell 4.01% and 4.42% respectively—both outperforming the broader market. This demonstrates that low-volatility, high-dividend, and momentum-screening strategies offer relative resilience during turbulent markets.

Institutional analysts note that after the sharp market correction, investor selection criteria have shifted from chasing pure growth themes to prioritizing cash flow, defensiveness, and stable ownership structures. Especially as U.S. tech earnings, AI industry outlooks, and geopolitical risks continue to influence market sentiment, high-dividend ETFs—with diversified holdings and clear income narratives—are better positioned to mitigate volatility from individual stocks or sectors.

Analyzing government-backed institutional trading data reveals that buying interest is not uniformly distributed across top defensive ETFs. The Yuanta Taiwan High Dividend Low Volatility (00713-TW), Mega International High Dividend 30 (00918-TW), and UBS Taiwan High Dividend Momentum (00939-TW) were all sold by public institutions—by 4,031, 34,515, and 2,531 shares respectively—indicating that even resilient-performing products face short-term portfolio rebalancing and capital management constraints.

In contrast, public funds are concentrating their buying on select high-dividend ETFs. The FT Taiwan Sustainable High Dividend ETF (00961-TW) saw net purchases of 32,797 shares, the Yuanta High Dividend ETF (0056-TW) gained 86,029 shares, and the Fuhua Taiwan Technology Premium Income ETF (00929-TW) was bought up by 37,459 shares. This reflects institutional preference for large-scale, liquid, and thematically clear products when accumulating on dips.

Market commentary suggests that while short-term support—such as strength in Taiwan index futures night trading and rebound in U.S. semiconductor stocks—may allow the index to test 43,000 points again, resistance remains from trapped long sellers and weak follow-through buying. Investors are advised to avoid chasing rallies and instead adopt a 'cut losers, hold winners' strategy. Priority should be given to high-dividend, low-volatility ETFs that have declined less than the market, offer strong liquidity, and hold fundamentally sound components—ideal as core defensive holdings during volatile periods.

Recent Performance and Government-Backed Institutional Net Trading of High-Dividend ETFs:

- 00713-TW: Yuanta Taiwan High Dividend Low Volatility, Closing Price: 60.20, Daily Change: -0.08, 1-Month Return: -2.43%, Institutional Net Trade: -4,031 shares (-243,395 thousand) - 00918-TW: Mega International High Dividend 30, Closing Price: 30.92, Daily Change: -0.29, 1-Month Return: -3.38%, Institutional Net Trade: -34,515 shares (-1,110,298 thousand) - 00939-TW: UBS Taiwan High Dividend Momentum, Closing Price: 21.07, Daily Change: 0.10, 1-Month Return: -4.01%, Institutional Net Trade: -2,531 shares (-54,173 thousand) - 00961-TW: FT Taiwan Sustainable High Dividend, Closing Price: 12.34, Daily Change: 0.00, 1-Month Return: -4.42%, Institutional Net Trade: +32,797 shares (+415,395 thousand) - 00932-TW:兆豐永續高息等權, Closing Price: 16.89, Daily Change: -0.88, 1-Month Return: -4.47%, Institutional Net Trade: -2,146 shares (-38,028 thousand) - 00731-TW: Fuhua FTSE High Dividend Low Volatility, Closing Price: 87.30, Daily Change: -0.40, 1-Month Return: -4.64%, Institutional Net Trade: -73 shares (-6,550 thousand) - 00936-TW: Taishin Sustainable High Dividend Small-Mid Cap, Closing Price: 19.50, Daily Change: -0.86, 1-Month Return: -5.34%, Institutional Net Trade: -1,430 shares (-29,966 thousand) - 0056-TW: Yuanta High Dividend, Closing Price: 49.95, Daily Change: -1.58, 1-Month Return: -5.40%, Institutional Net Trade: +86,029 shares (+4,414,988 thousand) - 00915-TW: Cathay优选高股息30, Closing Price: 30.27, Daily Change: -1.43, 1-Month Return: -6.23%, Institutional Net Trade: -2,394 shares (-77,000 thousand) - 00730-TW: Fubon Taiwan Quality High Dividend, Closing Price: 27.10, Daily Change: -0.37, 1-Month Return: -6.45%, Institutional Net Trade: -2 shares (-147 thousand) - 00878-TW: Cathay Sustainable High Dividend, Closing Price: 31.36, Daily Change: -1.41, 1-Month Return: -6.86%, Institutional Net Trade: +6,510 shares (+203,242 thousand) - 00919-TW: Capital Securities Taiwan Select High Dividend, Closing Price: 28.55, Daily Change: -1.31, 1-Month Return: -7.34%, Institutional Net Trade: +24,230 shares (+694,658 thousand) - 00940-TW: Yuanta Taiwan Value High Dividend, Closing Price: 11.75, Daily Change: -1.09, 1-Month Return: -7.48%, Institutional Net Trade: -15,438 shares (-193,866 thousand) - 00930-TW: Yuanta ESG Low-Carbon High Dividend, Closing Price: 23.44, Daily Change: 0.09, 1-Month Return: -8.11%, Institutional Net Trade: -284 shares (-6,812 thousand) - 00946-TW: Capital Securities Technology High Dividend Growth, Closing Price: 14.07, Daily Change: -1.26, 1-Month Return: -8.64%, Institutional Net Trade: -4,018 shares (-62,418 thousand) - TWA00: Weighted Index, Closing Price: 42,449.70, Daily Change: -0.52, 1-Month Return: -8.64% - 00943-TW: Mega Electronics High Dividend Equal Weight, Closing Price: 20.80, Daily Change: -0.81, 1-Month Return: -8.81%, Institutional Net Trade: +58 shares (+1,308 thousand) - 00944-TW: Nomura Trend Momentum High Dividend, Closing Price: 20.14, Daily Change: -2.00, 1-Month Return: -9.16%, Institutional Net Trade: -301 shares (-6,604 thousand) - 00900-TW: Fubon Select High Dividend 30, Closing Price: 17.73, Daily Change: -1.50, 1-Month Return: -9.45%, Institutional Net Trade: -7,946 shares (-152,739 thousand) - 00929-TW: Fuhua Taiwan Technology Premium Income, Closing Price: 27.94, Daily Change: -2.03, 1-Month Return: -10.16%, Institutional Net Trade: +37,459 shares (+1,098,571 thousand) - 00934-TW: CTBC Growth High Dividend, Closing Price: 25.73, Daily Change: -1.30, 1-Month Return: -10.41%, Institutional Net Trade: +2,586 shares (+71,941 thousand)

Source: CMoney, Data as of July 20, 2026