Finance Center/Reported by Tang Shiqing and Tan Junhao in Taipei
In the global investment market, the scale of ETFs frequently hits new highs, and Taiwan is no exception. As of the end of October, 227 ETFs on Taiwan stocks have attracted more than 3.26 trillion yuan. It is roughly estimated that the investment industry’s annual fee income from ETFs alone may exceed 16.3 billion. yuan, becoming the golden goose mother of many financial holding groups. Looking at the scale of domestic investment stock ETFs alone, it has doubled to 1.2098 billion yuan from 261.6 billion yuan in 2020.
Office workers have worked hard all year long and are waiting for the moment when they receive their year-end bonuses. However, in order to make a living in an era of soaring prices, Chinese people also have to think more carefully about their financial planning.
However, as U.S. inflation cooled and the Federal Reserve slowed down interest rate hikes twice, hot money poured into the bond market again. The total scale of Taiwan’s ETF investment exceeded 3.2 trillion, and the number of beneficiaries approached 8 million. Cathay Pacific’s sustainable high dividends have surpassed its starting point. The earliest ones, 0050 and 0056, have earned over one million people. Fuhua Taiwan Technology Excellent Dividend 00929, which pays monthly dividends, has become even more popular recently. Its stock price has been rising steadily in November, ranking 10th among ETF oversold stocks.
ETF expert Huang Bairen pointed out that the craze for ETFs is not just in Taiwan. It is actually a global trend. Especially starting from the United States, the place of invention, the number of investors and the total amount of investment are constantly reaching new highs. However, the choice of Taiwanese people is actually very obvious. That is to say, according to various statistics, it is probably the category of high dividends. Taiwan particularly likes high dividend products, which is different from other countries.
Huang Bairen believes that from the perspective of investment theory, dividends have no predictive power. It is not a very important factor, so it is rarely seen. Academic research will say that dividends are specifically pointed out. What are the benefits? The only thing that everyone can imagine is that we think of it too much like the concept of depositing and receiving interest. Instead, investors should think about why they should invest. We believe that in this investment capital market, the large listed companies run by entrepreneurs will have quite good returns, compared to us who lend money to others or ourselves. To choose these things, it is more beneficial to choose them than to use them in our own way. Therefore, when we make long-term investments, we should not imagine that we have to beat them. Our imagination should be that we are with He enjoys or shares the results of their business. Huang Bairen feels that it is not easy to succeed in this direction of high remuneration. The easier strategy to succeed is to follow the big army.
Although Taiwanese people have a soft spot for high-dividend ETFs, experts also shared that in the past 20 years, market capitalization ETFs have returned 7 to 10% every year. Investors are advised to stand on the shoulders of giants and deploy cautiously.
Original source: Global ETF investment boom!Taiwan’s total investment exceeds 3.26 trillion
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