0050, 006208 Lose Out! Taiwan's Strongest Dark Horse ETF: Total Return Reaches 75%, Outperforming Two Major Market-Cap Giants

Market-cap ETFs in the Taiwan stock market continue to attract investor attention. Financial expert Ruan Mu-Hua, on July 9, compiled market data up to the first week of July, pointing out that Yuanta Taiwan 50 (0050) has surpassed NT$2.2 trillion in assets, maintaining its position as the largest ETF in the Taiwan ETF market. Fubon Taiwan 50 (006208) ranks second with approximately NT$463 billion, and these two ETFs remain the most representative products in the current market-cap ETF segment.

0050's total return stands at 67.5%, with minimal performance gap compared to 006208

In terms of performance, the gap between 0050 and 006208 is narrow, with both delivering returns above the broader market. 0050 achieved a capital gain of 65.17% over the same period, and with a dividend yield of 2.33%, its total return is approximately 67.5%. 006208 recorded a capital gain of 67.46%. Since 006208 is scheduled to go ex-dividend on July 16, distributing NT$4.75 per beneficiary unit, with dividends credited on August 10, this payout has not yet been included, so its total return remains at 67.46% for now.

0050's dividend yield may fall below 2%, while 006208 faces difficulty exceeding 5% annually

Ruan Mu-Hua noted that while the two ETFs show similar price performance, their dividend situations differ. He estimates that 0050's recently announced dividend amount has significantly decreased, potentially resulting in an annual dividend yield below 2%. Although 006208 offers a relatively higher yield, surpassing 5% annually remains challenging.

009803 achieves 75.41% total return, outperforming two major market-cap ETFs

Notably, Yuanta Momentum 50 (009803, formerly Prudential Momentum 50), with assets under management below NT$4 billion, has outperformed both major market-cap ETFs in total return over the same period. According to Ruan Mu-Hua's analysis, 009803 achieved a capital gain of 68.59%, and with a dividend yield of 6.82%, its total return reached 75.41%, nearly 8 percentage points higher than 0050 and 006208.

009803 conducts '11 in, 11 out' rebalancing, adding substrate and semiconductor equipment stocks

Ruan Mu-Hua analyzed that one reason for 009803's strong recent performance lies in its significant portfolio adjustments. The ETF conducted a major '11 in, 11 out' rebalancing in mid-June, adding numerous large-cap stocks related to substrate and semiconductor equipment sectors, aiming to capture industries and assets with future growth potential.

TSMC holds 41.37% weight, MediaTek and Delta rank second and third

After the rebalancing, TSMC remains the largest holding in 009803, with a weight of 41.37%. MediaTek and Delta Electronics account for 6.2% and 3.8% respectively, ranking as the second and third largest holdings. Other top ten holdings include Yageo and ASE. The overall portfolio adopts a 'steady growth' strategy, seeking growth-potential assets without over-concentrating in any single stock.

009803 adopts quarterly dividends, filled the dividend gap in just 3 days after June ex-dividend

In terms of dividends, 009803 follows a quarterly distribution schedule, allocating earnings in March, June, September, and December each year. In June this year, it distributed NT$0.5 per beneficiary unit, filling the dividend gap in just three trading days after ex-dividend. The cumulative dividend yield from the two distributions this year has already reached 3.93%.

009803's annual yield could approach 8%, drawing attention for its dividend performance

Ruan Mu-Hua stated that if 009803 can maintain the same dividend level in the second half of the year, its annual dividend yield could approach 8%. Compared to 0050's projected annual yield of under 2%, 009803's nearly 4% performance in the first half stands out, making it another key indicator for investors seeking a balance between market-cap growth and dividend income.