Why 0050 Is Booming: The Secret Behind 50,000 New Monthly Investors—Using One ETF to Invest in TSMC and Leading Stocks for 12% Annual Returns

Tags: ETF, TSMC

Author: Investment-LeveragePlayer

Updated on September 10, 2025 02:47

Taiwan’s ETF market is experiencing a structural shift! According to the latest Taiwan Stock Exchange statistics, Yuanta Taiwan 50 (0050) saw an explosive increase of 50,000 regular investment accounts in August, reaching a total of 484,000 accounts. This firmly establishes its dominant market position, with 51 times more regular investors than its competitor Fubon Taiwan 50 (006208), often called “Little 0050”—clearly showing concentrated investor preferences.

Market analysts point out that 0050’s recent success stems from two key strategies that have resonated strongly with investors: lowering management fees and implementing stock splits to reduce entry barriers. These measures helped the ETF reach a record 1.469 million investors during the week of September 5, with the price hitting an all-time high of NT$215.6 (adjusted post-split) on September 9. The fund’s scale is about to break the NT$700 billion threshold.

Performance-wise, 0050 has delivered a total return of 1068% since inception through September 9, 2025, translating to an annualized return of approximately 11.9%. At this rate, investors could potentially double their assets every 6.2 years. Institutional investors note that 0050’s greatest advantage as a market-cap weighted ETF is its lack of subjective selection criteria, avoiding stock-picking mistakes while automatically reflecting market changes—as evidenced by Taiwan Cement’s recent removal from the index due to market cap decline.

High-Dividend ETFs Cooling Down

In contrast, high-dividend ETFs have lost momentum. While Yuanta High Dividend (0056) added 3,648 accounts in August (ranking second), other high-dividend ETFs like 00878, 00919, and 00713 each lost over 3,000 accounts. Uni-President FANG+ (00757) ranked third with 1,712 new accounts, emerging as the strongest overseas ETF, while Fubon NASDAQ (00662) and Fubon Taiwan 50 (006208) ranked fourth and fifth respectively.

Individual Stock Regular Investments: TSMC Remains Champion

For individual stock regular investment plans, TSMC remains the most popular choice with 109,500 accounts in August, adding 5,120 new accounts. Financial stocks continue attracting dividend investors, with E.Sun Financial surpassing Mega Financial to claim second place with 28,700 accounts. Benefiting from AI and server themes, Hon Hai overtook CTBC Financial to rank fourth with 18,800 accounts, reflecting clear capital rotation effects.

Market Trend Shifting Toward Long-Term Growth

Analysts observe that after 0050’s fee reduction and stock split, investors who previously chose high-dividend ETFs due to price considerations are now focusing on the growth potential of market-cap ETFs. Parents planning long-term investments for their children particularly value long-term performance, driving regular investment flows from high-dividend to market-cap ETFs.

As Taiwan stocks repeatedly hit new highs, regular investment plans are surging again. With 0050’s account numbers growing 51% in just two months and expected to exceed 500,000 in September, Taiwanese investors are clearly shifting from income-oriented to growth-oriented strategies, reflecting confidence in Taiwan’s long-term stock market development.

This article represents the author’s personal views only and should not be used as investment advice. Before making any investment decisions, you should seek independent financial advice to ensure you understand the risks. CFDs are leveraged products and could result in the loss of all your capital. These products are not suitable for everyone—please invest cautiously.