Taipei stocks opened lower and moved down on October 30, with the weighted index closing down 1156.5 points at 45211.83, a decline of 2.49%, and turnover reaching NT$8777.3 billion. Amid sharp market volatility, ETF products with defensive resilience and dividend advantages have drawn investor attention. Investment expert Bang Bang's Out-of-Control Finance Weekly analyzed 4 popular ETFs under Nomura Asset Management, comparing distributions and performance between actively managed and passive products.
Actively Managed ETFs Stand Out With Double-Digit Annualized Yields
The Active Nomura Taiwan 50 (00985A) uses an index-enhanced strategy, selecting from the top 150 companies by market capitalization and overweighting strong-momentum stocks. Its first distribution since inception was NT$2.15 per unit, implying an annualized yield of 18.09%, with a year-to-date return of 70.01%. The Active Nomura Select (00980A) combines qualitative company visits with the SRS quantitative multi-factor model. Its latest distribution was NT$0.638, with the estimated annualized yield rising from 8.83% to 13.05%, and a year-to-date return of 70.54%. Both actively managed products flexibly realize capital gains through their managers, with estimated annualized yields both reaching double-digit levels.
Passive ETFs Split Between Growth and Cash Flow
The Nomura Innovative Technology 50 (00935) targets leaders across 11 innovative technology fields. Its latest distribution was NT$1.83, implying an annualized yield of 6.36%, with a year-to-date return of 100.09%, demonstrating explosive price upside and capital-gain accumulation. The Nomura Trend Momentum High Dividend (00944) uses a monthly distribution mechanism, selecting high-dividend momentum stocks while avoiding value traps. It has distributed NT$0.109 consecutively, with an estimated annualized yield steady at around 5.99%, showing a relatively stable and defensive trend. The two passive products show a clear strategic split.
Experts Advise Flexible Allocation Based on Needs
Bang Bang's Out-of-Control Finance Weekly concluded that actively managed products can flexibly realize capital gains through managers, while passive products focus on technology growth and stable monthly cash flow respectively. Amid the sharp market correction, investors can allocate flexibly based on their preferences for cash-flow frequency and total-return growth to maximize asset efficiency in volatile conditions. Investing still involves risks, funds may make profits or losses, investors should read the prospectus carefully and prudently assess risks before subscribing, and are solely responsible for investment outcomes.