Taiwan Stocks Plunge Over 2,300 Points, High-Dividend ETFs Shine as Safe Havens

Taiwan stocks faced heavy selling pressure for two consecutive days, with a midday drop of over 2,300 points on July 29, breaking the 40,000-point mark. The closing price was down 1,564.18 points at 40,039.18, marking the seventh-largest drop in history. Amidst pressure on large-cap stocks and significant declines in the electronics and AI sectors, high-dividend funds demonstrated strong defensive capabilities as capital sought safe havens. Statistics show that among the top 10 Taiwan stock funds for resilience today, FT Taiwan Sustainable High Dividend (00961-TW) bucked the trend with a positive close, securing the top spot with a closing price of 12.59 yuan. The other targets also saw smaller declines compared to the overall market, highlighting a shift in capital from growth stocks to income-generating assets.

Taiwan stocks have recently faced significant declines, continuing the heavy selling pressure from the previous day. Amidst a sharp drop in international semiconductor stocks, rising geopolitical tensions, and interest rate uncertainty, market risk aversion has rapidly increased. The market leader, TSMC (2330-TW) (TSM-US), led the decline, dragging the overall market to its seventh-largest drop in history. However, in the midst of this volatility, high-dividend ETFs with defensive attributes became safe havens for capital. Among the top 10 resilient targets today, only FT Taiwan Sustainable High Dividend (00961-TW) bucked the trend with a 0.08% increase, demonstrating the resilience of high-dividend strategies during correction phases.

While the other listed targets all closed in the red, their declines were relatively smaller compared to the overall market. These included Taiwan Sinopac Sustainable High Dividend Small Cap (00936-TW), Uni-President Taiwan High Dividend Momentum (00939-TW), and Cathay PE High Dividend (00934-TW), all of which controlled their declines to within 1%. Fubon Taiwan Quality High Dividend (00730-TW) and Cathay PE High Dividend 30 (00918-TW) also demonstrated resilience. Overall, the resilience list was almost entirely dominated by high-dividend ETFs. Furthermore, observing the performance over the past month, most targets saw declines smaller than the overall market's 13.2% drop during the same period. Among them, 00961 maintained a positive return of 1.12%, highlighting its defensive characteristics.

Market analysts pointed out that this correction was not a single event but a resonance of multiple negative factors, including weakening U.S. consumer confidence, a sharp drop in the PHLX Semiconductor Index, global semiconductor stock sell-offs, the super central bank week, and uncertainty surrounding tech giant earnings. In the short term, the market is expected to maintain a high volatility pattern, with continued fluctuations until capital fully stabilizes.

FT Taiwan Sustainable High Dividend (00961-TW) fund manager Jiang Minghong stated that the recent market weakness primarily reflects the correction of U.S. tech stocks, heightened caution ahead of the Fed's interest rate decision, and investors' growing conservatism. However, he also emphasized that Taiwan's fundamentals remain robust, with economic indicators still showing red signals. Long-term demand for AI and semiconductors remains unchanged. Experts suggest that in the current environment, investors can adopt a staggered or regular investment approach to high-dividend ETFs to navigate market uncertainty while balancing returns and risk management.

Top 10 Taiwan Stock ETFs Performance Today:

Code Stock Name Closing Price (NTD) Today's Performance (%) Weekly Performance (%) Monthly Performance (%) 00961 FT Taiwan Sustainable High Dividend 12.59 0.08 -0.79 1.12 00936 Taiwan Sinopac Sustainable High Dividend Small Cap 19.75 -0.4 -2.9 -7.06 00939 Uni-President Taiwan High Dividend Momentum 21.37 -0.51 -1.43 0.19 00934 Cathay PE High Dividend 25.8 -0.88 -5.49 -7.56 00730 Fubon Taiwan Quality High Dividend 26.82 -0.96 -5.5 -6.84 00918 Cathay PE High Dividend 30 31.46 -1.16 -2.9 -2.09 00900 Fubon Select High Dividend 30 17.66 -1.18 -4.28 -7.68 00919 Yuanta Taiwan Select High Dividend 28.5 -1.35 -3.26 -3.39 00940 Yuanta Taiwan Value High Dividend 11.62 -1.36 -5.37 -7.78 00946 Yuanta Taiwan Tech High Dividend Growth 14.12 -1.47 -5.61 -7.95 Taiwan Weighted Index 40039.18 -3.76 -10.68 -13.2 Data Source: CMoney Data Date: 2026.07.29