The adjustments to the constituent stocks of 00878 and 00922 will take effect after the market closes today.

2023-11-30 06:46:20

The new generation national ETF Cathay Pacific Sustainable High Dividend (00878) has adjusted its constituent stocks, adding UMC (2303), World Advanced (5347), and Uni-President (1216); Cathay Taiwan Leader 50 (00922) has also adjusted its constituent stocks, adding Ren Bao (2324), MSI (2377), and Creativity (3443), the latest component stock adjustments of the two ETFs will take effect following the close of trading today (30th).

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The component stocks of 00878 and 00922 are adjusted and will take effect following the market closes today. Schematic/Getty Images (Alex Aviles via Getty Images)

00878 tracks the underlying index MSCI Taiwan ESG Sustainable High Dividend Select 30 Index. Its latest constituent stocks were adjusted in the second half of the year. A total of 3 new constituent stocks were added, including UMC, World Advanced, and Uni-President; 4 constituent stocks were deleted, including Acer (2353 ), Development Gold (2883), Sinosteel (2002), Nanya Branch (2408).

According to MSCI index company information, among the constituent stocks in this adjustment, UMC, World Advanced, Uni-President, etc. were included because they met the standards in terms of dividend score ranking and ESG performance; Sinosteel and Nanya Co., Ltd. have turned negative due to their combined EPS in the past four quarters, and Development Finance Due to the decline in dividend scores and dividend distribution, it once fell below the bottom 10% of the parent company. Acer was deleted due to the decline in ESG controversy scores.

Overall, this adjustment still maintains the characteristics of the 00878 underlying index that has always been relatively stable and has a low turnover rate, and the number of share swaps is not large. The underlying index of 00878 mainly selects companies with stable dividend distribution in the past three years and good dividend yields in the past 12 months. It focuses on the medium and long-term dividend stability of the company and does not use high-turnover methods such as large-scale share swaps to improve the project. Yield rate is the appeal, reducing the probability of investing in cyclical stocks or companies that increase dividend distribution due to one-time gains.

The legal person pointed out that the number of beneficiaries of 00878 this year continued to hit new highs, reaching 1.182300 as of November 24. 00878 went ex-dividend on November 16, and it only took 4 trading days to complete the dividend payment. On behalf of more than one million investors who participated in the ex-dividend, the actual dividends have been firmly pocketed. As for the public concern that the profits of the financial industry have greatly improved, next year’s dividend distribution is quite expected. About 20% of the component stocks of the 00878 tracking index are financial stocks, which is also one of the ETFs that will benefit.

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The counter-buying index surged by more than 10% in November, leading the concentrated market and setting a new high.

In addition, the latest adjustment of constituent stocks of 00922, which is a sister file of 00878, also took effect following today’s close. This time the adjustment is 3 in and 3 out, adding Compal, MSI, and Creative; deleting Sinosteel (2002) and Yang Ming (2609) , Taiwan High Speed ​​Rail (2633).

00922 tracks the MSCI Taiwan Leaders 50 Select Index, and selects 50 Taiwan stock leader companies through screening and adjustment of market capitalization, annual earnings, and MSCI low-carbon transformation scores, which are suitable for investors as long-term investment targets. According to data from the past 10 years, the cumulative interest-bearing return of the 00922 underlying index has reached 233%, which is better than the 205% of the Taiwan Weighted Index, showing an advantage in long-term performance.

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