Is the Taiwan Stock Market Volatility the Right Time to Invest? 00929 Maintains High Dividend of NT$0.38 – Analysts: Keeps Up During Rallies, Generates Income During Downturns

Fu-Hua Taiwan Technology High Dividend ETF (00929) has announced its latest estimated distribution amount. Following last month’s payout of NT$0.38 per unit, the fund expects to distribute another NT$0.38 per unit this month, maintaining the same high dividend level. Amid heightened market volatility driven by fluctuating U.S. interest rate cut expectations, geopolitical tensions, and profit-taking in the Taiwan stock market, 00929 has demonstrated strong downside resilience and impressive income performance. Based on its closing price of NT$27.47 on July 31, the annualized dividend yield for a single payout reaches 16.60%. The ex-dividend date is August 19, meaning investors must purchase shares by August 18 to qualify for this distribution. The distribution payment date is scheduled for September 14.

Over the past year, 00929 has consistently increased its dividend payouts, having raised distributions six times. After significantly increasing the payout to NT$0.38 per unit in July, the fund maintains the same level in August—reflecting not only its growing income-generating capacity but also the effectiveness of its newly optimized index methodology. Analysts point to two key advantages behind 00929’s ability to sustain high dividends. First, the fund has benefited from the strong rally in technology stocks driven by the AI boom. Following the semi-annual portfolio rebalancing at the end of June, the fund accumulated substantial capital gains, which now serve as a solid foundation for dividend distributions. Second, the index methodology was enhanced at the end of last year to become more flexible. During the June rebalancing, stocks that had already gone ex-dividend were removed, while companies yet to go ex-dividend and with strong dividend potential were added. This strategy enables the portfolio to continuously accumulate dividend income, creating a 'seamless connection between growth and income' and significantly enhancing the sustainability of future payouts.

Beyond income performance, 00929 has also delivered outstanding total returns this year. As of the end of the first half of the year, its cumulative return reached 76.5%, ranking first among high-dividend ETFs. This performance not only captures the growth momentum of AI-related tech stocks but also validates the dual advantages of the technology high-dividend strategy—capital appreciation and steady income. Since July, the Taiwan stock market has experienced increased volatility due to profit-taking and global macroeconomic factors, leading to a slight pullback in year-to-date returns. However, when comparing major indices, high-dividend ETFs, and actively managed Taiwan stock ETFs that have drawn significant investor attention this year, 00929 has delivered a near 60% return, outperforming the broader market, most high-dividend ETFs, and the majority of active funds. This highlights its relative downside resilience and consistent performance during turbulent periods.

Performance of actively managed Taiwan stock ETFs and the top five largest Taiwan high-dividend ETFs year-to-date. (Source: CMoney, July 31, 2026)

Although the Taiwan stock market has entered a consolidation phase after a strong rally, short-term volatility may persist due to global political and economic developments and investor sentiment. However, the long-term AI trend remains intact, and corporate earnings fundamentals remain solid. Analysts suggest that market corrections provide a strategic opportunity for long-term investors to build positions gradually. By continuously tracking the growth trajectory of the technology sector and offering a monthly distribution mechanism, 00929 combines capital appreciation potential with reliable cash flow. During volatile markets, it effectively delivers on its promise of 'keeping pace during rallies and generating income during downturns.' Its future distribution performance remains highly anticipated by the market.