On the final trading day before the ex-dividend date, July 20, the market experienced extreme volatility. The TAIEX benchmark index briefly reclaimed the 43,000-point mark, hitting an intraday high of 43,084.51, before selling pressure dragged it down to a low of 41,967.75, creating an intraday swing of over 1,100 points. Despite the volatility, investor appetite for the ETFs remained strong. 0050’s share price dipped below the NT$100 threshold intraday, closing near NT$99.9, yet its beneficiary count increased by approximately 45,000 to reach a record 3,357,248. This surge in holders, which widens its lead over TSMC (2330.TW) by over 400,000 people, was attributed by market observers to continued inflows via fixed-amount investment plans and buy-the-dip strategies, even amid concerns over US-Iran tensions and interest rates.
The distribution details for the two funds highlight distinct payout structures. 0050, which follows a semi-annual schedule, distributed NT$0.6 per unit. Combined with the NT$1 distributed in January, its total annual payout for 2024 stands at NT$1.6. In contrast, 0056, which operates on a quarterly schedule, issued a record distribution of NT$1.35 per share. Based on the recent share price, this payout pushes the annualized dividend yield for 0056 past 10%, a level described as highly attractive in the current low-interest-rate environment. 0056’s beneficiary count rose by 17,000 in the week leading up to the ex-dividend date, with total holders surging by over 80,000 since the end of last year to reach 1,620,840.
Following the ex-dividend date, both funds demonstrated strong resilience in the opening session on July 21. 0050 gapped up directly to NT$100 at the open, instantly filling the dividend gap created by the NT$0.6 distribution from its previous close of NT$99.2. The fund climbed to an intraday high of NT$101.1, representing a 2.54% gain. Similarly, 0056, with an ex-dividend reference price of NT$48.6, reached an intraday high of NT$49.5, filling more than 60% of its dividend gap. The rapid recovery in prices provided immediate paper gains for the millions of investors who held shares through the July 20 cutoff, confirming the strong demand for these high-yield instruments despite the broader market’s recent turbulence.
