August Dividend-Paying Bond ETFs Yield Comparison: Non-Investment Grade Bonds Dominate Top 3, 00981T Ranks 4th with Over 8%

As the U.S. Federal Reserve (Fed) monetary policy enters a pivotal transition period, markets are highly sensitive to interest rate trends and economic conditions. Dividend announcements for bond and balanced ETFs going ex-dividend in August have been released one after another, attracting significant attention from investors seeking stable cash flows and safe-haven assets. According to the latest statistics, the top 10 high-yield ETFs for August offer annualized dividend yields starting from 6.8%, with non-investment grade bond and balanced ETFs performing particularly well.

Based on closing prices on August 5 and announced dividend amounts, the ranking of the top 10 bond and balanced ETFs going ex-dividend in August is led by Tsai Shin U.S. Non-Investment Grade Bond (00989B-TW) with an annualized yield of 10.28%, followed by Yu Shan Select Non-IG Bond (00988B-TW) at 9.17% and First Securities Preferred Non-IG Bond (00981B-TW) at 8.22%.

Notably, the multi-asset balanced ETF KGI Dual-Core Income (00981T-TW) achieved a high annualized yield of 8.2%, ranking fourth—making it the only equity-bond dual-core ETF among the top five.

00981T is set for its eighth distribution since listing. Pre-announcement data indicates a proposed distribution of NT$0.082 per beneficiary unit, with the ex-dividend date scheduled for August 18 and the distribution payment date set for September 11. Investors wishing to participate in this dividend must purchase by August 17.

The U.S. Federal Reserve's FOMC concluded its July meeting, maintaining the policy rate as expected. However, three Fed officials opposed the decision, advocating for a rate hike. KGI Asset Management noted that the FOMC outcome reveals growing internal divergence on monetary policy. With inflationary pressures still unresolved, the likelihood of a rate hike before year-end has increased. Nevertheless, current market pricing has already factored in rate hike expectations. The U.S. economy continues to expand steadily, the labor market remains stable, and the AI trend shows no signs of reversal. While rate hikes may cause financial market volatility, they are unlikely to significantly disrupt the upward trend in equities.

The research team behind the KGI Dual-Core Income ETF (00981T-TW) stated that although the Fed held rates steady in July, the market interpreted the tone as hawkish, pushing long-term government bond yields higher. U.S. Treasury yields hit their highest level since 2007. Additionally, concerns over tech giants' capital expenditure reports have contributed to valuation repricing pressures. The current market is experiencing self-induced tightening, leading to increased short-term equity market volatility. Investors are advised to maintain prudent asset allocation to manage policy uncertainty and market fluctuations through diversified exposure across asset classes and regions.

On the bond side, the research team pointed out that the Fed's gradual removal of forward guidance will increase volatility in long-term bond yields. To avoid excessive interest rate risk, investors are advised to focus on short-to-medium-term bonds and credit bonds with mid-tier credit ratings (A to B) to balance yield enhancement with manageable credit risk.

Top 10 August Ex-Dividend Bond and Balanced ETFs Dividend Ranking

- Code: 00989B - Name: Tsai Shin U.S. Non-Investment Grade Bond - Dividend per Unit: NT$0.088 - Closing Price (8/5): NT$10.27 - Annualized Yield: 10.28% - Payout Frequency: Monthly

- Code: 00988B - Name: Yu Shan Select Non-IG Bond - Dividend per Unit: NT$0.153 - Closing Price (8/5): NT$20.02 - Annualized Yield: 9.17% - Payout Frequency: Monthly

- Code: 00981B - Name: First Securities Preferred Non-IG Bond - Dividend per Unit: NT$0.064 - Closing Price (8/5): NT$9.34 - Annualized Yield: 8.22% - Payout Frequency: Monthly

- Code: 00981T - Name: KGI Dual-Core Income - Dividend per Unit: NT$0.082 - Closing Price (8/5): NT$12.00 - Annualized Yield: 8.20% - Payout Frequency: Monthly

- Code: 00981D - Name: CTBC Active Non-IG Bond - Dividend per Unit: NT$0.070 - Closing Price (8/5): NT$10.50 - Annualized Yield: 8.00% - Payout Frequency: Monthly

- Code: 00945B - Name: KGI U.S. Non-Investment Grade Bond - Dividend per Unit: NT$0.090 - Closing Price (8/5): NT$14.71 - Annualized Yield: 7.34% - Payout Frequency: Monthly

- Code: 00986D - Name: Fuh Hwa Active Financial Bond Income - Dividend per Unit: NT$0.090 - Closing Price (8/5): NT$14.74 - Annualized Yield: 7.33% - Payout Frequency: Monthly

- Code: 00985D - Name: BlackRock Active Investment Grade - Dividend per Unit: NT$0.061 - Closing Price (8/5): NT$10.12 - Annualized Yield: 7.23% - Payout Frequency: Monthly

- Code: 00983D - Name: Fubon Active Composite Income - Dividend per Unit: NT$0.060 - Closing Price (8/5): NT$10.14 - Annualized Yield: 7.10% - Payout Frequency: Monthly

- Code: 00768B - Name: Fuh Hwa 20-Year U.S. Treasury Bond - Dividend per Unit: NT$0.850 - Closing Price (8/5): NT$49.98 - Annualized Yield: 6.80% - Payout Frequency: Quarterly

Source: CMoney, Data Date: 2026/8/5