Earn Monthly Dividends While Chasing Growth! Financial Expert Sharon Tsai: 00929 Pays NT$0.38, Nearly 17% Annualized Yield, Over 60% Performance This Year

Taiwan's stock market has been volatile in July, causing many ETFs to pull back. At this time, financial influencer "Sharon Tsai" suggests it's an ideal moment to re-evaluate one's portfolio.

She highlights that for investors seeking both growth potential and stable dividend income, the Fu-Hwa Taiwan Technology High Dividend ETF (00929) is worth considering. The latest dividend remains at NT$0.38 per unit, translating to an annualized yield of nearly 17%. Its year-to-date performance has exceeded 60%.

Notably, 00929 employs a unique rebalancing mechanism—"chasing dividends in June, chasing growth in December." In June, it timely replaced stocks that had already seen significant gains, demonstrating strong flexibility in adjusting its holdings. Sharon Tsai likens this adaptive capability to a powerful "amoeba."

Sharon Tsai notes that market volatility has intensified since July, with almost all ETFs experiencing corrections. However, she advises investors not to lose confidence but instead take this opportunity to reassess their investment goals.

For example, when active ETFs, 2x leveraged funds, or Philadelphia Semiconductor Index-related ETFs perform strongly, investors may be tempted to chase high prices, even using leverage to amplify returns. But if what they truly need is stable dividend income, impulsively buying these high-risk products could lead them to realize later—when the market enters consolidation—that they've chosen the wrong instruments.

In contrast, monthly dividend-paying ETFs like 00929 provide consistent cash flow each month, better meeting the needs of income-focused investors. Sharon Tsai identifies four key features of 00929: monthly dividends can support living expenses; they facilitate better cash flow planning; they reduce the likelihood of triggering the second-generation National Health Insurance supplementary premium (due to avoiding lump-sum large dividend payouts); and they enable automatic profit-taking, ensuring gains are secured.

She believes stable dividends act as downside support for an investment portfolio, helping investors maintain confidence during market fluctuations.

Beyond income, 00929 also offers growth potential within the technology sector. Taiwan is often called the "Silicon Island of Technology," with tech industries forming a critical foundation. 00929 targets high-dividend-yield, quality companies within this sector, offering not only dividend income but also participation in capital appreciation driven by industrial growth.

Especially after optimizing its index at the end of last year, 00929's stock selection now better balances both dividend yield and growth potential. Sharon Tsai points out that the fund's "June for dividends, December for growth" strategy allowed it to replace high-gaining stocks during its June rebalancing, enabling the portfolio to flexibly adapt to changing market conditions. She praises this well-timed adjustment as resembling a highly adaptable "powerful amoeba."

The effectiveness of this optimization is already reflected in this year's performance. On the dividend front, 00929 continues to distribute NT$0.38 per beneficiary unit. Based on the closing price of NT$27.57 on August 3, the annualized dividend yield is approximately 16.54%. If calculated using the average monthly dividend of NT$0.20 since the beginning of the year, the annualized yield is still close to 9%.

In terms of returns, as of July 31, 00929's year-to-date performance reached 60.2%, outperforming Yuanta Taiwan Top 50 (0050) at 58.6% and TSMC at 53.8%. As a result, it has been dubbed the "stealth active ETF" by the market.

Sharon Tsai concludes that for investors who want to capture the growth potential of tech stocks while also expecting monthly dividend income, 00929—with its combination of growth, dividends, and flexible rebalancing—is a compelling addition to any watchlist.