Capital Exits Growth Stocks: Institutions See Opportunity in High-Dividend, Value-Oriented Equities

Global growth stocks continue to face correction pressures, prompting market capital to gradually shift toward high-dividend sectors as a safe haven. Institutions indicate that recent geopolitical risks, uncertainty around interest rate policies, and a more conservative market sentiment have led to notable pullbacks in large-cap growth stocks across markets in the U.S., Taiwan, Japan, and South Korea. In contrast, long-dormant high-dividend and value-oriented stocks have demonstrated stronger downside resilience, delivering relatively stable performance and regaining investor interest, even advancing逆势.

The high-dividend sector encompasses diverse industries such as finance, industrials, real estate, and shipping, with most companies featuring relatively low valuations, stable cash flows, and long-term growth potential. CTBC Asset Management notes that rising oil prices have heightened market concerns over a potentially hawkish shift in the Federal Reserve's monetary policy, placing pressure on interest-rate-sensitive technology stocks. Conversely, financial institutions, primarily banks, may benefit from higher net interest margins in a high-rate environment, enhancing profitability and serving as a key safe haven during periods of heightened market volatility.

Examining the performance of prototype ETFs listed in Taiwan, thematic ETFs focused on China, financials, high dividends, and shipping have shown strong performance since the second half of the year. According to CMoney data through July 29, all top 10 ETFs by July-to-date gains have delivered over 5% returns, including: Fubon Hang Seng China Enterprises (00700-TW), CTBC China 50 (00752-TW), Taishin MSCI China (00703-TW), Nomura Japan Momentum High Dividend (00972-TW), CTBC Select Financials (00917-TW), Nomura Global Shipping Leaders (00960-TW), CTBC Nikkei High Dividend (00956-TW), CTBC Global High Dividend (00963-TW), CTBC China High Dividend (00882-TW), and Cathay Japan REIT (009817-TW).

Hsu Yu-Hao, portfolio manager of CTBC Nikkei High Dividend (00956-TW), stated that the market's investment focus has gradually expanded from previously concentrated AI-related stocks to financials, traditional industries, high-dividend, and value-oriented equities. He emphasized that ongoing corporate governance reforms in Japan have led companies to place greater emphasis on return on equity (ROE) and shareholder return policies, facilitating a rotation of capital from high-valuation tech stocks to undervalued sectors.

Hsu explained that CTBC Nikkei High Dividend ETF's investment strategy does not chase high-valuation AI themes but focuses instead on low-valuation, high-dividend companies in finance, insurance, shipping, steel, and telecommunications. In an environment where global capital is rotating from tech stocks to value and high-dividend equities, these companies not only possess stable cash flows and dividend-paying capacity but also stand to benefit from valuation recovery. The second half of the year offers dual opportunities for both income and capital appreciation, potentially delivering the dual advantages of 'stable dividends and growth potential'.

Recent Performance of Prototype ETFs

- 00700 Fubon Hang Seng China Enterprises: +18.5% since July, +16.0% over the past month - 00752 CTBC China 50: +15.7% since July, +13.8% over the past month - 00703 Taishin MSCI China: +12.9% since July, +11.2% over the past month - 00972 Nomura Japan Momentum High Dividend: +11.0% since July, +11.5% over the past month - 00917 CTBC Select Financials: +9.3% since July, +9.1% over the past month - 00960 Nomura Global Shipping Leaders: +9.2% since July, +9.2% over the past month - 00956 CTBC Nikkei High Dividend: +8.7% since July, +9.1% over the past month - 00963 CTBC Global High Dividend: +6.3% since July, +6.2% over the past month - 00882 CTBC China High Dividend: +5.8% since July, +4.2% over the past month - 009817 Cathay Japan REIT: +5.6% since July, +5.1% over the past month

Source: CMoney, data as of July 29, 2026.

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