etf 00713 dividend announcement: is 8% yield enough to stay invested?

2025-06-02 general

taipei, Monday, 2 June 2025.
Taiwanese ETF 00713, a favorite among local investors, has declared a second-season dividend of NT$1.1 per share. This translates to an annualized yield exceeding 8%. The ex-dividend date is June 20th. Despite concerns about overbought conditions, 00713 remains the only top five high-yield ETF with positive returns this year. Some analysts highlight its low volatility and solid long-term risk-adjusted returns. Is this enough to retain investor confidence?

Dividend details and market reaction

Yuanta Taiwan High Dividend Low Volatility ETF (00713) announced a NT$1.1 per share dividend for the second season of 2025 [1]. The ex-dividend date is set for June 20, with the payment date on July 11 [1]. This dividend corresponds to an annualized yield of approximately 8.5% based on the closing price of NT$51.6 on May 29 [1]. While the dividend is slightly lower than the previous NT$1.4, many investors still find it acceptable [1]. Market reaction has been mixed, with some investors expressing concern over the reduced payout [1][6].

concerns over dividend reduction

The recent dividend announcement has sparked debate among investors [6]. Some worry about the potential impact on the ETF’s stock value [6]. Online forums show investors expressing disappointment, with some fearing a price collapse [6]. One investor lamented that a year’s investment might yield returns similar to a fixed deposit [6]. Conversely, some investors remain optimistic, focusing on the fund’s underlying stock selection and data [6]. One such investor, ‘瑞奇媽媽’, plans to increase her holdings, viewing the numbers favorably [6].

performance and risk analysis

Despite the dividend decrease, 00713 has shown resilience compared to other high-yield ETFs [1]. Year-to-date until May 28, 00713 was the only one among the top five with a positive return of 0.3% [1]. Others, like Yuanta High Dividend (0056), experienced negative returns [1]. Furthermore, 00713 has demonstrated a superior risk-adjusted return over the past three years [2]. According to Morningstar data, its Sharpe Ratio was the highest among Taiwan large-cap stock funds as of April 2025, maintaining this leading position since 2022 [2].

expert opinions and fund strategy

Analysts attribute 00713’s stability to its low-volatility factor [1]. The ETF’s methodology aims to minimize the possibility of simultaneous declines among its constituent stocks [1]. It also involves adjustments based on price-to-earnings ratios [1]. 超馬芭樂, a financial commentator, suggests the reduced dividend is not due to a lack of funds but rather a strategic adjustment [1]. He estimates that 00713 has enough reserves to maintain a NT$1.4 dividend for another 15 quarters [1].

etf rebalancing and market dynamics

The dividend announcement coincides with a broader trend of ETF rebalancing in June [7]. Sixteen ETFs, including 00713, are scheduled for component adjustments, involving an estimated NT$925.7 billion in capital [7]. This rebalancing act could create opportunities for investors [7]. Analysts suggest that the increased dividend yields resulting from recent market corrections make high-dividend ETFs attractive [7]. Investors may find it advantageous to strategically position themselves to capitalize on these shifts [7].

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