Netizens Calculate Yield at Only 1.63%
Yuanta Taiwan 50 (0050) is a market-cap ETF chosen by many investors, but if dividend income is the main consideration, its yield is not particularly outstanding, nor is it suited to short-term trading as a primary strategy. Recently, a netizen asked on Dcard why so many people still choose to buy it, given its modest yield and lack of strength in short-term trading. One netizen calculated that, based on the November 5 closing price of 98.20, 0050 has distributed 1.60 in dividends this year, implying a yield of about 1.63%. He further calculated that to reach a 2% yield, with the dividend at 1.60, the share price would need to fall to 80; assuming next year's dividend grows to 1.3 times this year's level, or about 2.08, the share price would need to be around 104 for the yield to reach 2%. The poster argued that while 0050's share price may have long-term growth potential, it is essentially an ETF, not primarily focused on short-term price gains or high dividends, and questioned whether there might be other stocks better suited for long-term holding, wondering why investors choose it.
Market-Cap Positioning and Liquidity Advantage
In response, some netizens said bluntly that 0050 is inherently a market-cap ETF, and those seeking stable cash flow should choose high-dividend ETFs, as investment needs differ from person to person. Other netizens said that people around them who invest in 0050 usually do not focus on its yield, but on long-term stable returns. One argued that 0050 is chosen mainly for its strong liquidity, allowing investors to adjust their holdings more easily when they need funds for future home or car purchases, making capital use more flexible. In other words, what investors value is not the current dividend level, but the overall return structure over long-term holding and the convenience of entering and exiting the market, which is the fundamental difference in choosing between market-cap ETFs and high-dividend ETFs.
TSMC Weighting and Long-Term Holding Perspective
Netizens also noted that investors' views on 0050's concentration in TSMC (2330) can affect their willingness to invest. Those bullish on TSMC may consider 0050; those placing greater emphasis on diversification may evaluate other market-cap ETFs, such as the KGI Taiwan TOP50 (009816). According to the fund company's website, as of the 5th, TSMC accounted for 58.87% of 0050, compared with 41.36% of 009816. In addition, some netizens believe 0050 is suitable for long-term holding, with share price declines seen as opportunities to add positions; others think investors should commit funds that will not be needed for at least 3 to 5 years and not be overly nervous about short-term fluctuations. Overall, netizens hold mixed views on 0050, and investors should first clarify their own investment objectives before evaluating suitable products. This information is for reference only; investors should make independent judgments, carefully assess risks, and bear their own investment risks.