Who Is Buying Amid Taiwan Stock Market Volatility? Institutional and Retail Investors' ETF Investment Trends Revealed – Top Picks in High-Dividend and Market-Cap-Based ETFs Unveiled!

Recently, Taiwan's stock market has seen intensified fluctuations, but market capital has not retreated—in fact, it has attracted many investors looking to buy ETFs at lower levels. This article compiles recent buying trends from public-sector institutions and retail investors, analyzing fund flows and investment logic across high-dividend, market-cap-based, active, and leveraged ETFs. It also shares investment strategies for volatile markets, helping investors balance risk management with long-term asset accumulation.

* Public information is compiled for reference only. Investors should carefully consider their own needs and investment risks before investing.

* Active ETFs do not guarantee outperformance against benchmarks, broader markets, or passive ETFs.

* High-dividend ETFs offer no guaranteed returns or payouts. Investors should note that high-dividend ETFs are not substitutes for fixed deposits.

I. Where Are Institutional Funds Flowing?

During market volatility, public-sector institutions tend to buy large-scale, highly liquid products or those with specific investment themes on dips. Although some resilient ETFs (e.g., 00713, 00918) were adjusted by institutions, the following three ETFs saw significant net buying by public-sector entities:

ETF Name

Net Buy Volume by Institutions (Lots)

Characteristics & Reasons for Purchase

7/20 Daily Gain (%)

Recent Monthly Decline

(Resilience)

Yuanta High Dividend (0056)

86,029 lots

Institutions prefer large-scale, highly liquid products with clear dividend themes.

-1.58%

-3.35%

Capitol Taiwan Tech Premium Dividend (00929)

37,459 lots

Features a clear industry theme (tech premium dividend), attracting institutional dip-buying.

-2.03%

-8.07%

FT Taiwan Sustainable High Yield (00961)

32,797 lots

Combines resilience with sustainable high-yield characteristics.

0

-0.77%

Source: Compiled by Yuanta Securities; 7/20 single-day gain from Goodinfo; past-month decline from Yahoo Finance Taiwan; all data as of July 21, 2026, based on NAV.

For full ETF introductions, visit: Fengyun Classroom “How to Invest in Stocks” Column

II. Which ETFs Do Retail Investors Prefer During Market Pullbacks?

According to shareholder ownership statistics from the Central Depository, during periods of Taiwan stock market volatility and correction, retail investors show strong willingness to buy on dips, with beneficiary numbers increasing significantly. Leveraged and large-cap ETFs are the most popular:

Rank

ETF Name

Beneficiary Count

Monthly Increase (People)

7/20 Daily Gain (%)

Recent Monthly Decline

(Resilience)

1

Capital Taiwan Weighted Bull 2x (00685L)

145,311

-1.23%

-12.69%

2

Yuanta Taiwan 50 (0050)

118,500

-0.95%

-3.73%

3

Capitol Future 50 (00991A)

63,232

-1.9%

-15.46%

4

Yuanta High Dividend (0056)

47,623

-1.58%

-3.35%

5

Capital Semiconductor Income (00927)

42,066

-3.31%

-7.98%

6

Capital Taiwan Select High Dividend (00919)

27,637

-1.31%

-5.54%

7

KGI Taiwan TOP50 (009816)

25,989

-0.98%

-5.43%

8

Fubon Taiwan Dragon Glory (00405A)

16,292

-2.45%

-16.67%

9

Uni-President Taiwan Growth (00981A)

12,217

-2.01%

-12.71%

10

First Financial Best Dividend (00408A)

7,354

0

X

Source: Central Depository Shareholding Distribution Report (as of July 17, 2026); 7/20 daily gain from Goodinfo; past-month decline from Yahoo Finance Taiwan; all data as of July 21, 2026, based on NAV.

III. Four Major Market Trends Revealed by Institutional and Retail Investor Behavior

Diverging Investment Strategies: The retail crowd favors leveraged ETFs (e.g., 00685L), which offer amplified returns. Lower entry barriers due to share splits have made them more accessible, with stable positioning—not merely chasing the most resilient products, but adjusting based on capital management.

Rise of Active ETFs: Retail purchase rankings show that active ETFs (e.g., 00991A) occupy multiple top-10 spots, indicating investors now trust fund managers’ flexibility in volatile markets, beyond just passive index-tracking products.

For detailed ETF comparisons, visit: Fengyun Classroom “How to Invest in Stocks” Column

IV. Key Considerations for ETF Allocation in Volatile Markets

Core Allocation to Low-Volatility ETFs: Investors should prioritize resilient ETFs that have clearly underperformed market declines and hold fundamentally sound components as defensive core holdings.

Avoid Chasing Rapid Gains: After Taiwan stocks hit record highs, upside faces pressure from trapped sellers and weak follow-through demand. A "cut losers, keep winners" strategy is advisable—avoid impulsive entries during sharp rebounds.

Exercise Caution with Leverage Risk: While leveraged ETFs like 00685L are popular among retail investors, their extreme volatility requires strict risk management to avoid severe losses from potential reversals after short-term rallies.

V. How to Start Investing in ETFs?

Using Yuanta Securities as an example, investors can implement their strategies through three methods:

Full-Share Trading: Investors who prefer buying whole shares can place orders via the "Da Hu Trade" app during trading hours.

Fractional Share Trading: For limited capital or alternative strategies, investors can trade fractional shares via the "Da Hu Trade" app during or after market hours.

Stock Savings Plan: Through "Feng Cun Gu," set up regular, fixed-amount investments by selecting targets, setting amounts, and enabling automatic deductions—starting with just TWD 100 for Taiwan stocks.

Stock Account Opening Guide → Click to Learn More

2. Enable Dividend Reinvestment

Recommended Reading:

Dividend Reinvestment in One Step: Amplify Assets | Taiwan Stock Dividend Reinvestment Setup Guide at Yuanta Securities

3. Earn Rental Income by Lending Held Shares

Recommended Reading:

Stock Savings + Securities Lending | Feng Cun Gu Helps You Save Dividends—and Potentially Save Taxes?

Disclosure on Recommended Securities

No improper financial interests exist. Past performance does not guarantee future profits.

Investors must make independent judgments, conduct careful evaluations, and bear investment risks themselves.