Yuanta Securities Investment Trust’s “Yuanta Taiwan High Dividend Value ETF” (00940) has sparked investment frenzy in Taiwan. According to Bloomberg’s estimates, the asset size of 00940 will reach a staggering $8 billion after 30 trading days, making it the largest ETF globally and even surpassing the record set by all Bitcoin spot ETFs.
Taiwan is enthusiastic about investing in high dividend ETFs. The “Yuanta Taiwan High Dividend Value ETF” (00940) launched by Yuanta Securities Investment Trust, with its offering price of NT$10 per share and monthly dividends, raised NT$175.2 billion in just 5 days last month, breaking the record for the largest ETF listing in Taiwan and benefiting over 700,000 investors.
Eric Balchunas, a senior ETF analyst at Bloomberg, shared data indicating that according to Bloomberg’s estimates, the asset size of 00940 will reach a staggering $8 billion after 30 trading days, surpassing the asset size record of $7.2 billion achieved by BlackRock’s Bitcoin spot ETF “IBIT” one month after its listing.
Eric Balchunas stated that 00940 experienced a first-day break. However, it is worth noting that despite being favored by Taiwanese retail investors, 00940 broke on its first day of listing, closing at NT$9.76, a decrease of NT$0.16 or 1.61%, below the offering price of NT$10. This caused distress among the 700,000 investors who took out loans to purchase 00940. The stock is currently trading at NT$9.80, still a distance away from returning to its offering price.
According to statistics from the Investment Trust and Consulting Association, the total size of Taiwanese ETFs ranks third in Asia. The scale of Taiwanese ETFs has grown rapidly in recent years, from over NT$1.6 trillion at the end of 2019 to over NT$4.1 trillion at the end of February this year. Among them, the scale of Taiwan stock ETFs has surged from NT$127.4 billion to over NT$1.5 trillion, a growth rate of nearly 12 times in just over 4 years, making it the largest among all types of ETFs.
From the perspective of the Asian region, as of last year, the asset size of Taiwanese ETFs ranked third in Asia, behind only Japan and China, while the trading volume ranked fifth, lagging behind China, South Korea, Hong Kong, and Japan. Therefore, some fund managers still believe that Taiwanese ETFs have not gone too far.