Yuanta Funds has launched the “Yuanta Taiwan High Dividend ETF” (00940) in Taiwan, igniting investment frenzy. According to Bloomberg estimates, after 30 trading days of listing, the asset size of 00940 is expected to reach a staggering $8 billion, becoming the largest ETF globally, surpassing even the record set by all Bitcoin spot ETFs.
(Timeline:
On the first day of listing, 00940 broke and “700,000 investors mourned.” Netizens joked: “Better to buy Bitcoin!”
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(Background:
Bitcoin vs. Taiwan’s popular ETF 00940: Performance and risk at a glance.
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Taiwan is enthusiastic about investing in high-dividend ETFs. The “Yuanta Taiwan High Dividend ETF” (00940) launched by Yuanta Funds, 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 size of ETF listed in Taiwan, benefiting over 700,000 investors.
Eric Balchunas, Senior ETF Analyst at Bloomberg, tweeted on the 2nd:
Sharing data shows that, according to Bloomberg estimates, after 30 trading days of listing, the asset size of 00940 is expected to reach a staggering $8 billion, surpassing the asset size record of $7.2 billion achieved by the Bitcoin spot ETF “IBIT” launched by BlackRock one month after listing.
Eric Balchunas stated: 00940 broke on its first day of listing. 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, down NT$0.16 or 1.61% from the offering price of NT$10, causing distress to 700,000 investors. Those who took out loans or mortgages to subscribe to 00940 are lamenting.
00940 is currently trading at NT$9.80, still a long way from returning to the offering price.
Trend chart of 00940. Image source: Yahoo
Taiwan’s total ETF market size ranks 3rd in Asia
According to statistics from the Investment Trust and Investment Consulting Association, Taiwan’s ETF market size has expanded 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 Taiwan stock ETF market size has surged from NT$127.4 billion to over NT$1.5 trillion, a growth of nearly 12 times in just over 4 years, making it the largest among various types of ETFs.
In terms of the Asian region, as of last year, Taiwan’s ETF asset size ranked 3rd, second only to Japan and China, and its trading volume ranked 5th, behind China, South Korea, Hong Kong, and Japan. Therefore, some fund managers still believe that Taiwan’s ETF market has not gone crazy.
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