The highly anticipated “Yuanta Taiwan High Dividend Yield ETF” (00940), which has caused a stir in the market, announced its dividend distribution information for the first time today. It will distribute NT$0.05 per share. This article analyzes for readers whether investing in Taiwan stocks or the cryptocurrency market would yield better returns recently.
(Previous Context:
Bloomberg: Taiwan’s 00940 is “too strong,” surpassing all Bitcoin spot ETFs, estimating an 8 billion NT$ scale within 30 days of listing
)
(Background:
Bitcoin vs. Taiwan ETF hit product 00940: Performance and risk comparison at a glance
)
Contents of this article:
Dividend of NT$0.05 per share
Taiwan stocks surged by 2,700 points, with infantile investors earning only NT$250 per share
Is it better to buy 00940 or Bitcoin to earn more?
The “Yuanta Taiwan High Dividend Yield ETF” (00940), launched by Yuanta Investment Trust, caused a market sensation even before its listing. With an issuance price of NT$10 per share and monthly dividends, it raised an astonishing NT$175.2 billion in just 5 days, breaking Taiwan’s ETF listing record, benefiting over 700,000 investors and becoming the fourth largest high-dividend ETF.
Due to its ability to attract hundreds of billions of NT$ before listing, 00940 is also jokingly referred to in the market as “the giant baby that grows up as soon as it is born.”
Against this backdrop, 00940 announced today (26th) 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%. In other words, each share can receive NT$50 in dividends. According to the announcement, 00940 is expected to have an ex-dividend date of July 11th, a last purchase date of July 10th, and a dividend payment date of August 1st.
In addition, regarding the initial estimated dividend announcement of 00940, Yuanta Investment Trust explained that the main sources of dividends may come from 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, while capital gains are obtained through periodic adjustments if constituent stocks rise.
Against the backdrop of a booming global stock market, Taiwan’s stock market also reached a historic high of 23,406 points on June 20th, but subsequently experienced fluctuations and closed at 22,986 points yesterday. However, investors in the “giant baby” 00940 may feel particularly significant in terms of wealth growth during this stock market feast.
This article will compare the price performance of 00940 and the Taiwan Weighted Index from April 1st (the listing date of 00940) to the present. We can observe:
– From April 1st, the Taiwan Weighted Index rose from 20,222 points to 22,986 points today, an increase of 2,764 points, or 13.6%.
– From April 1st, 00940’s initial listing price was NT$10 per share, rising to NT$10.2 today, an increase of NT$0.2, or 2%.
Including the current dividend of NT$0.05, each 00940 share allows investors to earn NT$250.
Note: The article only calculates the return based on stock prices and does not include transaction fees, trading taxes, or ETF management fees.
At this point, some might ask if it’s more profitable to buy Bitcoin. The article calculates for you: Coincidentally, when 00940 was listed, Bitcoin was at a peak of $71,000. If an investor had bought Bitcoin on April 1st, according to Binance data, Bitcoin has fallen by 14.09% since then.
Therefore, while 00940’s profit since listing has lagged behind the Taiwan Weighted Index, it has outperformed Bitcoin. However, this comparison is based on a short-term 3-month period, and long-term performance remains to be verified.
Further Reading:
00940 listed on the first day broke “700,000 investors mourn”, netizens laugh: “Better buy Bitcoin!”
BTC Price. Source: Binance
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