High-Dividend ETFs See 40-Percentage-Point Return Gap This Year! Financial Expert: 00929 Is the 'Only One Balancing Returns and Sustainable Distributions'

Taiwan's stock market has seen a strong bullish trend this year, but high-dividend ETFs have delivered vastly different performances, with a performance gap exceeding 40 percentage points. Financial expert Ruan Mu-Hua pointed out that among 23 high-dividend ETFs, only eight have achieved a total return (including dividends) above 50% year-to-date. The top three are Fu-Hwa Taiwan Tech High Dividend (00929), KGI Tech High Yield Growth (00946), and Cathay Sustainable High Dividend (00878). Among them, 00929 is the only ETF that simultaneously excels in both return performance and dividend sustainability, leading with a 70% total return and increasing its dividend 3.8 times from the beginning of the year, maintaining a steady payout of NT$0.38 per unit for three consecutive months, proving it is not a flash in the pan.

Ruan noted that as of the end of August, excluding the semiconductor-themed KGI Semiconductor Yield (00927), the average total return of 23 passive Taiwan equity high-dividend ETFs exceeded 45%. However, investor participation did not grow accordingly—only six funds saw an increase in shareholder numbers, with a net outflow of approximately 489,000 investors overall.

Further analysis shows clear performance divergence among high-dividend ETFs this year. Only eight have surpassed a 50% total return, with the gap between top and bottom performers exceeding 40 percentage points. Ruan explained that Taiwan's market rally has been led by technology stocks, benefiting high-dividend ETFs with higher exposure to electronics. 00929, with about 95% in tech stocks, achieved a 70% total return, ranking first. 00946, with 91.9% in electronics-related sectors, ranked second with 66.1%. 00878, with around 50.2% in tech and 32.7% in financials, ranked third with a 61.6% total return.

00929 stands out as the only high-dividend ETF balancing strong returns and sustainable payouts. Its dividend has steadily increased from NT$0.10 per unit in January to NT$0.38 in July and August, with September expected to maintain the same level—representing a 3.8-fold increase from the start of the year. Maintaining such a high payout amid stricter scrutiny of return smoothing mechanisms highlights its strong dividend sustainability.

In terms of holdings, 00929 is not concentrated in a single sector. Its top 10 holdings account for about 31%, spanning semiconductors, computer peripherals, electronic distribution, other electronics, and telecom networks. Key holdings include Novatek, Realtek, Adata, ASUS, Synnex, Catcher Technology, Ascent, Taiwan Mobile, Chunghwa Telecom, and Far EasTone. This diversified tech-sector exposure allows 00929 to capture market momentum while supporting its consistent monthly dividend of NT$0.38.

In contrast, 00713, which ranks near the bottom, has only 31.4% in tech stocks, with telecom, food, and department stores totaling 33.5%. In a market led by tech gains, holdings like Taiwan Mobile and Uni-President saw limited appreciation, resulting in underperformance. Another fund, Yuanta High Dividend Stock (00907), ranked last with a 17.6% return.