TAIPEI (Taiwan News) — Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF (00878) has reached NT$403.6 billion in assets in about 4.5 years, making it the fastest-growing ETF in Taiwan's history.

It is now the second ETF in Taiwan to surpass the NT$400 billion (US$12.2 billion) mark, following the nation's ETF pioneer Yuanta Taiwan 50 ETF (0050). In comparison, 0050 took 21 years to reach NT$400 billion by mid-2024, per CNA.

An ETF, or an exchange-traded fund, is an investment fund issued by management firms that tracks a specific market index. For example, the 0050 invests in the 50 largest Taiwanese companies listed on the stock market.

Established in July 2020 with an initial price of NT$15 (45 cents), 00878 was Taiwan's first quarterly dividend ETF. In the past few years, 00878 has set several records for Taiwanese ETFs, including having the highest number of beneficiaries and regular investment accounts.

By purchasing shares, an investor acquires a small piece of ownership in the company, becoming a shareholder. Profit given back to shareholders in the form of cash or stocks are dividends.

Taiwan's ETFs typically distribute dividends annually, semi-annually, quarterly, or bi-monthly. Monthly dividend ETFs, introduced in 2023, have gained popularity with income-focused investors.

Monthly dividend ETFs are suitable for investors seeking stable cash flow. For example, someone investing in 100 lots (equivalent to 100,000 shares in the Taiwanese market) of monthly dividend ETF 00929, with a payout of NT$0.2 per share, would receive NT$200 (US$6) per lot, adding up to NT$20,000 in monthly dividends.

This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.