Taiwan stocks experienced major corrections in April and May, and following digesting the negative effects of the international market, there have been repeated signs of bottoming out, and the market will gradually return to fundamentals. As the sequence enters the end of May, Cathay Pacific Sustainable High Dividend ETF (00878-TW) today (31) will also follow the semi-annual adjustment of the underlying index “MSCI Taiwan ESG Sustainable High Dividend Select 30 Index”. This time, five new tranches have been added and four tranches have been deleted. Nearly 530,000 shareholders should pay attention.
According to the information of the stock exchange, Chibo Clearing House and the Investment Trust Association, as of the end of April, the number of regular fixed debit accounts has increased for 14 consecutive months, and as of last Friday (5/27), the number of beneficiaries was 00,878 The number of people has reached 529,279, and the size of the fund has also reachedNew Taiwan Dollar With RMB 72.9 billion, it has become the largest ESG-themed ETF in China. At the same time, on May 16 this year, 00878 has also become the prototype ETF with the largest circulation in Taiwan, and has become the first prototype ETF in China with a circulation of more than 4 million.
00878 Today follows the underlying index – “MSCI Taiwan ESG Sustainable High Dividend Selected 30 Index” for semi-annual adjustment.1605-TW), Shanghai Commercial Bank (5876-TW), Motota (8069-TW),Can become (2474-TW), Dairendai (3702-TW) wait for fifth gear, and delete AUO (2409-TW), Hongzhun (2354-TW), unified super (2912-TW),world (5347-TW) and other four stocks, the overall index adjustment will take effect following the market closes on May 31, 2022.
You Rijie, the fund manager of Cathay Pacific Sustainable High Dividend ETF, said that the adjustment of this index maintains the stable and low turnover rate of the underlying index. Among them, Huaxin and Yuantai have been added, mainly because they have been successively included in the parent index in the past six months. – In the MSCI Taiwan Index, Kecheng and Dalianda were included because of their EPS and ESG performance, respectively, Shanghai Commercial Bank was included because the dividend score reached the standard; Hongxin was deleted because it was excluded from the parent index- MSCI Taiwan Index, AUO, Uni-President The reason for the deletion of super and world is that the dividend score is ranked lower.
You Rijie pointed out that on the whole, the adjusted investment portfolio still has the opportunity to show the earthquake-resistant characteristics of the 00878 ETF in the past, which is suitable for adding to long-term asset allocation. At this stage, the world is still under the pressure of inflation, and investors continue to worry regarding economic recession. Taiwan stocks have seen repeated signs of bottoming out recently following undergoing a major correction in May and digesting the negative international situation. Despite the interference of geopolitical risks and the rising epidemic in China, the revenue of Taiwan’s listed OTC companies in April still reached a record high for the same period of the previous year, showing that the fundamentals of Taiwan stocks remain unchanged.
You Rijie said that by observing the panic index of Taiwan stocks, it can also be found that when the panic index reached a relatively high point in the past, Taiwan stocksweighted indexIt is also often near the swing low, such as January 26 and March 8 this year; and the current panic index has slowed down from the high point of 24.55 on May 12, reflecting that the most pessimistic situation has passed, but repeated bottoming still remains. It takes time. Investors are advised to deploy stable Taiwan stock ETFs in batches through regular fixed quotas to grasp the opportunity for Taiwan stocks to rebound.
