Taiwan Stocks Undergo Major Shake-Up Over Past Month; These 3 ETFs Defy Downtrend with Over 1% Monthly Gains

Market volatility has rapidly intensified, accompanied by rising defensive sentiment among investors. Taiwan's stock market closed today (28th) at 41,603.36 points, plunging 4.65% amid growing AI skepticism, a pullback in U.S. tech stocks, and cautious sentiment ahead of the Federal Reserve's interest rate decision. Trading volume exceeded 800 billion NT dollars. Against a backdrop of a 7.55% total return decline in the broader market over the past month, high-dividend ETFs have demonstrated relative resilience, with four funds posting positive returns—emerging as safe havens in turbulent markets.

Taiwan's stock index has reached higher levels this year, with single-day losses significantly widening. Statistics show that since June, the market has recorded its two largest intraday point drops: 2,953.71 points on July 17 and 2,694.08 points on June 8—indicating that market volatility has entered a phase of intense fluctuation. Financial institutions note that while the 1,000-point swings partly reflect a higher base level after surpassing 40,000 points, the consecutive break below the quarterly moving average and prior lows signals that short-term positioning and investor confidence are undergoing stress tests.

In this volatile environment, the one-month total return rankings of high-dividend ETFs have drawn market attention. According to the latest data, FT Taiwan Sustainable High Dividend (00961-TW) achieved a 1.62% total return over the past month, leading all high-dividend ETFs. UBS Taiwan High Dividend Momentum (00939-TW) followed with 1.61%, ranking second; Dahua High-Yield High-Fill 30 (00918-TW) posted 1.27%, ranking third; and Yuanta Taiwan High Dividend Low Volatility (00713-TW) recorded 0.67%, placing fourth. Compared to the broader market’s 7.55% decline, these funds have shown stronger resilience.

While most other high-dividend ETFs turned negative, their losses were relatively contained. Fubon FTSE High Dividend Low Volatility (00731-TW) posted a -0.06% return, Capital Group Taiwan Select High Dividend (00919-TW) -1.93%, and Mega International Sustainable High Dividend Equal Weight (00932-TW) -2.78%. Market observers point out that amid valuation corrections in tech stocks and rising concerns over AI capital expenditures, high-dividend ETFs—known for stable payouts, diversified holdings, and lower volatility—are attracting capital seeking steady cash flow and reduced portfolio swings.

Three Key Factors Driving Market; Manager: Economic Fundamentals Remain Strong

Jason Chiang, fund manager of FT Taiwan Sustainable High Dividend (00961-TW), stated that the recent market weakness is primarily driven by three factors. First, sharp declines in U.S. tech and semiconductor stocks have pressured ADRs of TSMC (2330-TW) and UMC (2303-TW), creating external headwinds for Taiwan’s market. Second, ahead of the Fed’s rate decision meeting, market sentiment remains cautious, leading to conservative trading volumes in Taipei’s equity and foreign exchange markets. Third, the July consumer confidence index showed a decline in the 'investment timing for stocks over the next six months' indicator, suggesting that after a sharp rally, retail investors and market capital are turning cautious, undergoing a consolidation at elevated levels.

Chiang emphasized that despite short-term volatility, domestic real economic fundamentals remain strong. June’s economic indicator continued to show a 'red light' signaling robust activity, with leading indicators rising. Additionally, better-than-expected U.S. capital goods orders confirm that rigid AI demand remains intact. This pullback appears more like a sentiment-driven correction rather than a fundamental reversal. However, with the market having broken below the quarterly line for three consecutive days and falling below prior lows, a strong volume rebound above key moving averages is needed to signal a structural recovery.

Looking ahead, institutions believe that tech giants’ earnings reports and post-FOMC messaging will be pivotal in determining whether market sentiment can recover. Investors should monitor AI capital spending and monetization outcomes from Microsoft, Meta, and Amazon, as well as Apple’s progress on Apple Intelligence and the new product cycle. Chiang recommends that investors adopt a prudent, defensive strategy amid heightened volatility—avoiding chasing overbought and heavily traded stocks—and instead consider dollar-cost averaging or phased investments into fundamentally sound high-dividend ETFs to accumulate assets and mitigate single-market volatility risks.

Recent Performance of High-Dividend ETFs

| Code | Stock Name | Closing Price (NT$) | Today's Change (%) | 1-Month Total Return (%) | | --- | --- | --- | --- | --- | | 00961 | FT Taiwan Sustainable High Dividend | 12.58 | -1.56 | 1.62 | | 00939 | UBS Taiwan High Dividend Momentum | 21.48 | -1.96 | 1.61 | | 00918 | Dahua High-Yield High-Fill 30 | 31.83 | -2.3 | 1.27 | | 00713 | Yuanta Taiwan High Dividend Low Volatility | 60.4 | -1.31 | 0.67 | | 00731 | Fubon FTSE High Dividend Low Volatility | 88.2 | -2.05 | -0.06 | | 00919 | Capital Group Taiwan Select High Dividend | 28.89 | -2.37 | -1.93 | | 00932 | Mega International Sustainable High Dividend Equal Weight | 16.79 | -2.55 | -2.78 | | 00936 | Taishin Sustainable High Dividend Small-Mid Cap | 19.83 | -4.06 | -4.16 | | 00878 | Cathay Sustainable High Dividend | 31.5 | -3.23 | -4.26 | | 00943 | Mega Electronics High Dividend Equal Weight | 20.68 | -3.81 | -4.35 | | 0056 | Yuanta High Dividend | 48.19 | -3.62 | -4.38 | | 00946 | Capital Group Technology High Dividend Growth | 14.33 | -4.15 | -4.47 | | 00915 | Kaiji Preferred High Dividend 30 | 30.5 | -2.99 | -4.98 | | 00940 | Yuanta Taiwan Value High Dividend | 11.78 | -3.13 | -5.23 | | 00934 | CTBC Growth High Dividend | 26.03 | -4.72 | -5.28 | | 00900 | Fubon Select High Dividend 30 | 17.87 | -2.67 | -5.5 | | 00930 | Yuanta ESG Low-Carbon High Dividend | 22.92 | -3.41 | -5.64 | | 00730 | Fubon Taiwan Quality High Dividend | 27.08 | -3.22 | -6.07 | | TWA00 | Weighted Index | 41603.36 | -4.65 | -7.55 | | 00929 | Fubon Taiwan Tech Premium Dividend | 27.11 | -5.01 | -8.35 | | 00944 | Nomura Trend Momentum High Dividend | 19.77 | -4.17 | -8.68 |

Source: CMoney, Data as of July 28, 2026