Taiwan High‑Dividend ETFs Outperform Market After Record Daily Drop

After the Taiwan market recorded its largest single‑day point decline, volatility remained elevated. Large‑cap tech stocks such as TSMC and Foxconn provided some support, while small‑cap, memory, mature‑process and passive‑component stocks faced heavy selling pressure, leading investors to seek defensive assets.

High‑dividend, low‑volatility ETFs proved resilient, with the Yuanta Taiwan High‑Yield Low‑Vol ETF (00713) falling only 2.43% over the past month compared to an 8.64% drop in the weighted index. Similar performance was seen for Dawa Youli High‑Yield 30 (00918) at –3.38%, Uni Taiwan High‑Yield Momentum (00939) at –4.01% and FT Taiwan Sustainable High‑Yield (00961) at –4.42%, all well under the market decline.

Analysts note that after the sharp sell‑off, investors are shifting from pure growth bets to stocks with solid cash flow, defensive traits and stable ownership. With the index possibly testing the 43,000‑point level but still facing selling pressure, they advise avoiding rapid buying and focusing on ETFs that have lower recent drops, good liquidity and robust constituent quality.