Benchmark Plunges 1,000 Points Led by Electronics
Taiwan stocks have seen intensified volatility recently, with selling pressure re-emerging intraday today. As of 12:00 noon, the Weighted Index plunged 1161.02 points, down 2.5%, to 45207.31 points. Popular market-cap ETFs 元大台灣50 (0050), KGI Taiwan TOP50 (009816) fell 2.8% and 2.75% intraday respectively, while leveraged 2x ETFs generally fell more than 5.5%. Compared with technology heavyweights leading the decline, financial and traditional industry groups showed relatively resilient performance. Today intraday the 中電 Electronics Sub-Index fell about 3%, the Non-Electronics Index fell only 1.7%, and the Financial Index fell only about 1.3%, significantly less than the broader market, highlighting the relative defensive advantage of financial stocks in volatile markets.
18 ETFs With Financial Weight Over 20%, 6 Over 50%
The importance of asset allocation lies not only in pursuing returns in bull markets, but also in diversifying risk and reducing portfolio volatility during market turbulence. Among Taiwan ETFs with high financial stock allocations, the one with the highest financial purity, 元大MSCI金融 (0055), fell only 1.84% intraday today, with a cumulative gain of 24.7% over the past 3 months. Although the financial industry features high regulation and relatively high industry barriers, it still faces risks from interest rate changes, business cycles, and market volatility.
Counting Taiwan ETFs with financial holdings exceeding 20%, a total of 18 qualify, of which 6 have financial weights exceeding 50%. In addition to 0055 at 96%, multi-factor KGI Optimal 30 (00938) and high-dividend 統一 Taiwan High Dividend Momentum (00939) reached 62.61% and 59.94% respectively, while Cathay Dividend Select 30 (00701) and Capital Taiwan Select High Dividend (00919) both exceeded 54%. Some popular high-dividend ETFs with over one million holders also have sizable financial allocations, with 00919 at 54.09%, Cathay Sustainable High Dividend (00878) at 35.05%, and 元大高股息 (0056) at 28.48%, reflecting different stock selection logic and sector allocations among the ETFs.
Many Post Double-Digit Gains Over Past Three Months
Looking at performance over the past 3 months, many ETFs with high financial allocations posted double-digit gains. Among them, 0055 rose 24.7% cumulatively, while 00701 and 00939 rose 20.51% and 20.5% respectively, both up more than 20%. In addition, Fubon FTSE High Dividend Low Volatility (00731) and 00919, both with financial weights over 50%, rose 19.66% and 19.35% respectively over the past 3 months, and 00938 gained 18.93%, with overall performance generally strong. However, short-term resilience and medium-term returns remain different perspectives, and actual performance is affected not only by financial allocations but also by other holdings and overall market conditions.