The highly anticipated “Yuanta Taiwan High Dividend Yield ETF” (00940) that has stirred up the market, today announced its first dividend information, distributing NT$0.05 per share. This article analyzes whether investing in Taiwan stocks or the cryptocurrency market would yield better returns recently.
(Previous context:
Bloomberg: Taiwan’s 00940 is too strong, “surpasses all Bitcoin spot ETFs”, estimated to reach a market size of NT$8 billion within 30 days of listing.)
(Table of contents:
Dividend of NT$0.05 per share
Taiwan stock market surged by 2700 points; retail investors only earned NT$250 per share
Is it better to buy 00940 or Bitcoin for higher returns?
The “Yuanta Taiwan High Dividend Yield ETF” (00940) launched by Yuanta Securities Investment Trust, caused a market sensation even before its listing, with an issuing price of NT$10 per share and monthly dividends. It raised NT$175.2 billion in just 5 days, breaking the record for the largest ETF listing in Taiwan, benefiting over 700,000 investors and becoming the fourth largest high dividend ETF.
Due to its ability to attract over NT$100 billion before listing, 00940 has been nicknamed “the giant baby born grown-up.”
Against this backdrop, 00940 today (26th) announced its first dividend information, distributing NT$0.05 per share. Based on today’s closing price of NT$10.2, the annualized dividend yield is approximately 6%. This means each share will receive NT$50 in dividends. According to the announcement, 00940 is expected to have an ex-dividend date of July 11, a last purchase date of July 10, and a dividend payment date of August 1.
In addition, regarding the initial estimated dividend announcement of 00940, Yuanta Securities Investment Trust explained that the main sources of dividends for 00940 may include dividends received from constituent stocks and capital gains that may arise from adjustments to constituent stocks. Dividends received are accumulated continuously after receiving dividends distributed by companies, and capital gains are obtained through periodic adjustments if the constituent stocks appreciate.
Against the backdrop of a global stock market surge, the Taiwan Stock Exchange also reached a historic high of 23,406 points on June 20, but subsequently fluctuated and closed at 22,986 points yesterday. However, investors in the “giant baby” 00940 may have felt particularly significant wealth growth during this stock market banquet.
This article will compare the price performance of 00940 and the Taiwan Weighted Index from April 1 (the listing date of 00940) to date. We can observe:
On April 1, the Taiwan Weighted Index was at 20,222 points and today at 22,986 points, an increase of 2,764 points or 13.6%.
00940 was listed at NT$10 per share on April 1 and today at NT$10.2, an increase of NT$0.2 or 2%.
Including the current dividend of NT$0.05, each 00940 share can earn investors NT$250.
Note: This analysis calculates the return rate based solely on stock prices and does not include transaction fees, trading taxes, or ETF management fees.
At this point, some may ask if it is more profitable to buy Bitcoin. This article calculates that precisely when 00940 was listed, Bitcoin was at its peak of $71,000. According to Binance data, Bitcoin has since declined by 14.09% from April 1 to date.
Therefore, while the profit from 00940 since listing has been less than that of the Taiwan Weighted Index, it has outperformed Bitcoin. However, this comparison is based on a short-term three-month period, and long-term performance requires further verification over time.
Further reading:
00940’s debut on the market caused a loss on the first day for “700,000 investors”, and netizens joked: “Better buy Bitcoin!”
BTC Price. Source: Binance
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