Latest Developments in Taiwan Stock ETF Market: 00940 Fails to Reach Issuing Price, 00730 Set to Go Ex-Dividend, FSC Relaxes Holding Restrictions, Female Investors Reach Record High

Taiwan • Business • 11h ago
Latest Developments in Taiwan Stock ETF Market: 00940 Fails to Reach Issuing Price, 00730 Set to Go Ex-Dividend, FSC Relaxes Holding Restrictions, Female Investors Reach Record High

The Taiwan ETF market has been experiencing frequent activity recently. The Yuanta Taiwan Value High Dividend ETF (00940) completed its sixth dividend replenishment on May 8, but its stock price remains below the issue price, drawing the attention of investors. The Fubon Taiwan Quality High Dividend ETF (00730) is set to go ex-dividend on May 19, boasting an annualized yield of 6.13%. The Financial Supervisory Commission has relaxed ETF holding restrictions, allowing component stocks such as TSMC to be included according to their market value proportions. There is an increase in female investors participating in financial management, with the Cathay Sustainable High Dividend ETF (00878) with the number of beneficiaries surpassing 1.72 million, making it the top choice among housewives.

Key Updates

7h ago

For the first time in 28 months, TSMC Chairman C.C. Wei increased his shareholding by purchasing 20 lots of shares at the low point in April.

In April 2025, TSMC Chairman C.C. Wei purchased 20 lots of company stock on the centralized market when the stock price plummeted due to the U.S. "reciprocal tariffs" policy. This action was his first increase since December 2022. The purchase price ranged from 841 to 868 NT dollars, with a total expenditure of approximately 16.82 million to 17.2 million NT dollars. Several other TSMC executives also increased their holdings at this time, indicating internal confidence in the stock being at a low point. This move took place after TSMC's stock price dropped below 800 NT dollars, prompting both retail and institutional investors to enter the market.

11h ago

Latest Developments in Taiwan Stock ETF Market: 00940 Fails to Reach Issuing Price, 00730 Set to Go Ex-Dividend, FSC Relaxes Holding Restrictions, Female Investors Reach Record High

The Taiwan ETF market has been experiencing frequent activity recently. The Yuanta Taiwan Value High Dividend ETF (00940) completed its sixth dividend replenishment on May 8, but its stock price remains below the issue price, drawing the attention of investors. The Fubon Taiwan Quality High Dividend ETF (00730) is set to go ex-dividend on May 19, boasting an annualized yield of 6.13%. The Financial Supervisory Commission has relaxed ETF holding restrictions, allowing component stocks such as TSMC to be included according to their market value proportions. There is an increase in female investors participating in financial management, with the Cathay Sustainable High Dividend ETF (00878) with the number of beneficiaries surpassing 1.72 million, making it the top choice among housewives.

12h ago

In April 2025, amidst fluctuations in the Taiwan stock market, market-cap ETFs showed stable performance, with the FT Taiwan Smart ETF leading the way with a 17.3% gain, as the Taiwan stock market climbed back to 20,000 points.

In April 2025, the Taiwan Stock Exchange dropped more than 2,000 points due to global financial market turmoil and exchange rate fluctuations, hitting a low of 17,306 points. However, it quickly rebounded, with the weighted index climbing back to 20,235 points by April 30. Market-cap ETFs showed steady performance, especially the FT Taiwan Smart ETF (00905) by Franklin Templeton SinoAm, which gained 17.3% from April 9 to April 30, highlighting the resilience of its stock-picking strategy amid market volatility.

15h ago

The total market value of Taiwan stocks increased by over 400 billion TWD in a week: Stocks in the oil, electricity, and gas sectors led the gains, while the information services sector saw the most activity.

As of May 9, 2025, the Taiwan Stock Exchange Capitalization Weighted Stock Index rose by 127.4 points to 20,915.04 points, with a weekly increase of 0.61%. The total market value of all listed companies increased to 67.2714 trillion NTD, an increase of 4.13494 trillion NTD. The oil, electricity, and gas stocks led with a gain of 9.44%, while the home living stocks fell by 3.10%. The semiconductor stocks' transaction value was 4,100.44 billion NTD, accounting for 29.21%, and the information services stocks had the highest turnover rate at 18.82%.

19h ago

Amid Taiwan Stock Market Volatility: High Dividend Funds Demonstrate Resilience with a Dual Strategy of Technology and High Yields

Since 2025, the Taiwan stock market has experienced significant fluctuations due to tariff and currency wars, but high-dividend themed funds have demonstrated resilience, making them a stable investment choice. Statistics from CMoney indicate that actively managed Taiwan stock funds have dropped by an average of 16.5%, while high-dividend funds have only declined between 4% and 15%. Experts recommend that investors adopt a dual strategy of high-dividend and technology electronics stocks to strengthen the defensive capabilities and long-term return potential of their investment portfolios.

23h ago

Trump announces draft of US-UK trade agreement, US stock market rises, Taiwan stock market reaches a new high, semiconductor and IC design stocks draw attention.

On May 8, 2025, President Trump of the United States announced a draft of the first bilateral trade agreement with the United Kingdom, which includes tariff adjustments, expanding agricultural exports, and technological cooperation. The announcement boosted the three major U.S. stock indices, with the Dow Jones Industrial Average rising 254 points and the Nasdaq Composite increasing by 1.07%. The following day, the Taiwan stock market surged 371 points, with a focus on IC design and semiconductor supply chains, and stocks such as TSMC and MediaTek showing strong performance.

05/09 11:04

May 9, 2025, Taiwan Futures Market: The near-month contracts of Taiwan TAIEX futures and electronic futures saw a slight decline after hours, with market sentiment remaining stable.

On May 9, 2025, in the after-hours trading of the Taiwan futures market, the near-month Taiwan Stock Index Futures contract closed at 20,831.00 points, down 15.00 points, with a volatility of 0.31%. The near-month Electronics Futures contract closed at 1,132.30 points, down 0.55 points, with a volatility of 0.60%. The two major index futures experienced limited price movements, and market sentiment remained stable. There was a negative spread of 2.54 points between the electronics futures and the spot market, indicating conservative short-term expectations for electronics stocks.

05/09 11:04

On May 9, 2025, in the Taiwan Stock Index Options Market, proprietary traders are bearish, while foreign investors maintain a net long position in call options.

On May 9, 2025, the three major institutional investors showed divergent operations in the Taiwan options market. Proprietary traders took a bearish stance, net selling 2,653 call options and net buying 3,754 put options. Foreign investors maintained a net long position on call options, net buying 1,743 call options and slightly net selling 166 put options. Investment trusts did not conduct any trading. This reflects the different strategies institutional investors use to respond to market risks.

05/09 03:09

On May 9, 2025, the Taiwan Futures Market Night Session Rose: TAIEX Futures Closed at 20,680 points, Electronics Futures Closed at 1,125 points.

On May 9, 2025, in the post-market trading of the Taiwan futures market, the near-month Taiwan Stock Index Futures contract closed at 20,680 points, up 102 points, an increase of 0.5%. The near-month Electronics Futures contract closed at 1,125 points, up 10.6 points, an increase of 1.59%. Major index futures generally rose, indicating a stable trading environment and reflecting investors' confidence in the market. Other futures, such as the Semiconductor 30 and Taiwan Mid-Cap 100, also rose, but the Yuanta 20-Year U.S. Treasury Bond ETF Futures fell, indicating a divergence in trends between the stock and bond markets.

05/09 02:00

Taipei Stock Exchange opens strongly, rising over 100 points: led by TSMC, boosted by international trade news.

On May 9, 2025, the Taipei stock market was influenced by the new US-UK trade agreement, as well as news about the US-China trade negotiations, causing the weighted index to rise by 147.4 points to 20,690.8, hitting an intraday high of 20,762.38. TSMC opened with a significant jump of 20 NT dollars to 938, acting as the main driver. The market is still focused on the potential semiconductor tariff policy that the Trump administration might announce. The three major institutional investors collectively made net purchases of 740 million NT dollars, net short positions in foreign futures decreased, and options data showed a tug-of-war between long and short positions.

00940 Successfully Covers Dividends for the Sixth Time, Stock Price Still Below Issue Price

Yuanta Taiwan Value High Dividend ETF (00940) conducted its sixth ex-dividend on May 8, 2025, distributing 0.03 TWD per unit. The stock price opened at the ex-dividend reference price of 8.72 TWD and closed at 8.77 TWD, achieving a 100% dividend coverage rate. However, since its listing in March 2024, the dividend amount for 00940 has been reduced from the initial 0.05 TWD to 0.03 TWD, and the stock price has fallen below 8 TWD, reaching a low of 7.32 TWD, and has yet to return to the issue price of 10 TWD.

According to Yuanta Investment Trust, as of now, the number of 00940's beneficiaries is 743,751, a decrease of over 90,000 from the initial 920,000 beneficiaries at the time of listing. The asset size has also shrunk from a peak of 170 billion TWD to about 125.3 billion TWD. Despite the impressive dividend coverage performance, the market reaction is lukewarm, with many investors on social media expressing dissatisfaction with the negative total return.

00730 to Go Ex-Dividend on May 19, Annualized Yield Over 6%

Fubon Taiwan Quality High Dividend ETF (00730) is scheduled to go ex-dividend on May 19, 2025, with a distribution amount of 0.11 TWD per unit, an increase of 0.01 TWD from the previous ex-dividend. Based on the net asset value of 21.54 TWD on May 9, the annualized yield reaches 6.13%. The last purchase date is May 16, and the dividend is expected to be distributed on June 13.

00730 tracks the Dow Jones Taiwan Quality High Dividend 30 Index, with selection criteria covering financial indicators such as market capitalization, liquidity, after-tax net profit (ROE), and free cash flow to total debt ratio. Among its constituent stocks, electronic components company Qisda (2385) accounts for 9.98%, semiconductor company Novatek (3034) 9.77%, other electronics company HannStar (2404) 7.93%, and optoelectronics company Radiant (6176) 6.93%. As of May 9, 00730 has 16,543 beneficiaries.

FSC Eases ETF Holding Restrictions, TSMC Proportion Can Be Adjusted According to Market Value

To enhance the international competitiveness of Taiwan's financial market, the Financial Supervisory Commission (FSC) recently announced the easing of ETF holding restrictions, breaking the 30% holding limit on a single constituent stock that has been in place since 2006. The new policy allows ETFs to allocate based on the actual market value proportion of constituent stocks in the Taiwan Weighted Stock Index, with the total holding proportion of the top five constituent stocks must not exceed 65%.

Currently, there are 30 Taiwan stock ETFs issued by 14 investment trusts holding TSMC, with a total scale of 960 billion TWD. According to the new regulations, these ETFs only need to adjust the index compilation rules and prospectus, and obtain FSC approval to increase the holding proportion of TSMC. The FSC stated that this revision is based on the recommendations of the "Financial Action Innovation Regulatory Adjustment Platform" and will continue to review relevant regulations in the future to ensure market stability and international alignment.

Female Investors Reach New High, 00878 Becomes the Top Choice for Housewives

According to statistics from the Taiwan Stock Exchange, as of April 2025, the number of female-held securities accounts has reached 6,910,011, surpassing the 6,407,244 male accounts for the first time. The rise of female financial power, especially among housewives, has made Cathay Sustainable High Dividend ETF (00878) the most popular investment choice.

00878 adopts a cash dividend yield-weighted stock selection, combined with ESG (Environmental, Social, and Governance) principles and a quarterly dividend mechanism. The targets cover diverse industries, including telecommunications, food, cement, textiles, and rubber, which are domestic demand-oriented enterprises. Since its establishment in 2020, 00878 has quickly gained popularity, becoming Taiwan's first quarterly dividend ETF with a revenue equalization mechanism.

00878 Beneficiaries Exceed 1.72 Million, Firmly Leading Taiwan Stock ETFs

As of May 2, 2025, the number of beneficiaries of 00878 has exceeded 1.72 million, firmly ranking first among Taiwan stock ETFs. Its fund size has also grown rapidly, surpassing 400 billion TWD in February 2025, and reaching 421.4 billion TWD on May 6, setting a record for the fastest achievement of this scale in the Taiwan ETF market.

According to Cathay Investment Trust analysis, the recent appreciation of the New Taiwan Dollar has put pressure on export industries, but domestic demand and asset-based industries have benefited from cost reductions, becoming the market focus. In the component stock allocation of 00878, the weight of domestic demand-related industries is close to 20%, demonstrating relatively strong resilience against declines amid exchange rate fluctuations, further consolidating its market position.

References

People Also Ask...

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How will the Financial Supervisory Commission's relaxation of ETF holding restrictions affect TSMC?

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The Financial Supervisory Commission has eased restrictions on Exchange-Traded Fund (ETF) holdings. What impact will the adjustment in Taiwan Semiconductor Manufacturing Company's (TSMC) proportion have on the market?

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After the Financial Supervisory Commission relaxed ETF holding restrictions, how will the adjustment of TSMC's stockholding ratio impact the market?