Financial Stocks Ignite High-Dividend ETF Rally as 00919 Sets Record High for Second Straight Day — BigGo Finance

Demand for Taiwan high-dividend ETFs continues to heat up, with the Capital Taiwan Select High Dividend ETF (00919) — which counts approximately 1.38 million investors — opening at a fresh record high of NT$31.42 on August 26, marking its second consecutive session of setting new highs, powered by the recent strong rally in financial holding stocks. Although intraday volatility in financial stocks pulled 00919 back from its peak, the market remains focused on the upcoming quarterly distribution announcement scheduled for month-end.

Taiwan’s stock market opened lower but rallied sharply on August 25, closing up 407.14 points, or 0.91%, at 45,169.46. Financial stocks were particularly strong, driven by robust earnings reports. Fubon Financial Holding (2881.TW) surged 7.2% to close at NT$141.5, a record high; KGI Financial Holding (2883.TW) locked limit-up; and Cathay Financial Holding (2882.TW) rose 4.15% to reclaim the NT$100 level. The financial index jumped 2.31% in a single session to 3,233.38 points, closing in on its all-time high, and continued to strengthen on August 26, lifting high-dividend ETFs with significant financial stock exposure.

Among the 94 Taiwan-listed ETFs, five hold financial stocks at weightings exceeding 50%: 00919, Yuanta MSCI Financials ETF (0055.TW), Cathay Dividend Select 30 ETF (00701.TW), Uni-President Taiwan High Dividend Momentum ETF (00939.TW), and KGI Select 30 ETF (00938.TW). Of these, 00919 posted the strongest total-return performance since the start of August at 5.07%, and also set a record closing high on August 25.

The following table shows the total-return performance since August for the five Taiwan-listed ETFs with financial stock weightings above 50%:

Note: Performance data as of August 25, 2026. Only 00919’s August total-return performance has been publicly disclosed.

With the share price repeatedly setting records, market attention has shifted to 00919’s upcoming 14th distribution announcement at month-end. Institutional investors note that investors are eager to see 00919 maintain its high-dividend strategy, with strong market expectations for the continuation of its policy of sustaining an annualized distribution yield above 10%. If the distribution remains stable, it will help continue attracting high-dividend investment capital.

Defensive Value of High Financial-Content ETFs

The Taiwan ETF research team at Capital Investment Trust noted that amid frequent market swings, investors can use Taiwan high-dividend ETFs to gain exposure to Taiwan equities. These ETFs not only exhibit lower volatility compared to individual stocks and the broader market, but the companies that pay high dividends tend to have relatively stable operations and sound financial structures. Additionally, the higher probability of downside protection from dividend income allows these ETFs to demonstrate stronger resilience during periods of market turbulence.

Market institutional investors further pointed out that high-dividend ETFs with substantial financial stock weightings can serve not only as long-term dividend accumulation vehicles but also offer the potential for capital appreciation. Compared to other sectors, financial stocks have shown steady performance in both dividends and share prices, making high financial-content Taiwan ETFs suitable for conservative, long-term investors.

Financial Sector Profit Momentum Supports Dividend Growth

Hsieh Ming-Chih, fund manager of the Capital Taiwan Select High Dividend ETF, said that Taiwan’s equity market has seen vigorous trading activity this year, driving fee income from wealth management and securities brokerage businesses, while capital gains from proprietary trading are also expected to be substantial. This is fueling continued growth in financial sector profits and dividends, with insurance-focused financial holding companies particularly standing out for their investment value.

He believes that the strong financial earnings reports, combined with the expected benefit from recovering investment income, align with investors’ dual demand for dividend growth potential and actual high payouts. He recommended that investors maintain positions in Taiwan high-dividend ETFs with high financial stock weightings.

Institutional investors also concur that the impressive financial sector earnings, coupled with the ongoing high-dividend theme, suggest that high-dividend ETFs with significant financial stock exposure still have room to benefit. In an environment of heightened volatility at elevated market levels, high-dividend ETFs offer the advantage of diversifying single-stock risk, and their constituents are predominantly companies with relatively solid profitability and financial structures. Dividend income also provides a degree of downside support, making these ETFs retain allocation value during periods of market turbulence.