New ETF Faces First Market Pullback Test
Whether new ETFs are worth buying after listing has recently become a focus for investors. A netizen posted on Dcard titled "Should you buy a new ETF? Look at whether it has survived a sharp sell-off," noting that a new ETF must go through a major market correction before its downside resistance can be observed, using 00998A, listed in April this year, as an example for analysis. The post noted that this October pullback was the first major market test for 00998A since its listing. From October 6 to 16, the TAIEX fell 5.44%, and 元大台灣50 fell 6.44% on a total-return basis, while 00998A fell only 0.74% over the same period, showing relatively strong resilience and sparking market discussion.
The original poster argued that although this pullback showed some defensive characteristics for 00998A, a single correction is not enough to prove its long-term downside resistance. In particular, as this ETF focuses on financial stocks, it could still see volatility if financial shares themselves correct in the future, or amid rapid interest-rate changes. Investors should not assume it can remain stable in all market environments based only on one pullback performance.
Holdings and Selection Logic Are the Key
After the post was published, many netizens responded that the key to selecting an ETF remains its holdings and selection logic, stressing that "knowing what product you are buying is the key," and that investors should understand the product's characteristics before investing. Some netizens suggested holding technology stocks as core holdings and financial stocks as satellite holdings to diversify risk during sharp market declines and avoid over-concentrating funds in a single target.
Other netizens praised 00998A's performance this time, saying its share price is relatively accessible, and that amid popular positioning in technology stocks, financial products provide a different allocation option. Other netizens said they will consider any ETF once it has been through one market test, and that 00998A performed commendably this time and they have started considering buying it. The original poster suggested treating 00998A as part of asset allocation, but not as a safe haven, and that investors should judge independently, evaluate prudently, and bear their own investment risks.