Yuanta Taiwan Value High Dividend ETF 00940 announces dividend distribution for the first time

Recently, Yuanta Taiwan Value High Interest ETF (00940) announced its dividend for the first time, triggering widespread market attention and discussion. According to the announcement, 0.05 yuan per share was allocated. Based on the closing price of 10.2 yuan on June 26, the annualized yield is approximately 6%.

Source: Yuanta Investment Credit Yuanta Taiwan Value High Interest ETF (00940) first announcement

The market reaction to the dividend announcement of 00940 was mixed. Some netizens think that the annual return rate of 6% is not bad and acceptable. However, some netizens expressed strong dissatisfaction with this, believing that only 0.05 yuan per share was allocated, which is equivalent to only 50 yuan per share. For investors with high expectations for investment returns, such a dividend appears to be too meager. Some netizens jokingly said: "This is basically nanometer information, the feeling of being given away." In an instant, the topic of 00940 sparked a heated discussion on the PTT stock market forum.

00940 Sources of dividend distribution and future prospects

According to Yuanta Investment Trust's explanation, the dividend distribution of 00940 mainly comes from the dividend income distributed by the constituent stocks, as well as the capital gains that may arise when the constituent stocks are adjusted. Specifically, dividend income comes from dividends issued by the company, while capital gains come from regular adjustments after the price of constituent stocks increases.

Yuanta Investment Trust emphasized that as the net value composition of 00940 stabilizes, its dividend distribution ability will become more stable in the future. Investors will continue to pay attention to its dividend announcements and market performance. According to the announcement, 00940 will go ex-dividend on July 11, July 10 will be the last buying day, and the dividend payment date is scheduled for August 1.

Bitcoin versus 00940

Against this background, some investors have begun to compare the return on investment of traditional financial products and cryptocurrencies. Especially the comparison with Bitcoin is even more significant.

On April 1 this year, when 00940 was listed, Bitcoin fell by a total of 12.69% from $69,666.57 that day to $60,822.96 today.

Source: TradingView Bitcoin Price Chart

The share price of 00940 rose from 9.76 yuan to 10.11 yuan, an increase of approximately 3.63%. Including this dividend distribution, the total return rate for each 00940 is approximately 4%.

Source: TradingView 00940 stock price chart

This means that although the investment return rate of 00940 since its listing is not as good as the 13.6% of the Taiwan Weighted Index, it exceeds the return rate of Bitcoin. Although this is only a short-term performance of three months, it still adds a bright light to traditional financial products in the competition with cryptocurrencies. Since investment market cycles vary from person to person, this does not mean that cryptocurrencies are necessarily worse than traditional financial products. It can only be said that judging from the market conditions in the past three months, the performance of traditional stock markets has been relatively good.

Image source: TradingView

For investors, the choice between traditional financial products such as 00940 or cryptocurrencies such as Bitcoin depends on personal risk tolerance and investment strategy. Traditional financial products usually have lower risks and relatively stable returns; while cryptocurrencies have the characteristics of high risks and high returns, and their prices fluctuate violently.

Overall, 00940’s first dividend announcement has aroused widespread attention and discussion in the market, with both supporters and skeptics. In the future, as the market continues to change and investor needs diversify, the showdown between traditional financial products and cryptocurrencies will become increasingly fierce. Investors should allocate assets reasonably based on their own circumstances to achieve the best return on investment.

[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.