Samsung Asset, KODEX Taiwan Tech High Dividend Dow Jones ETF Listed

A unique domestic investment product focusing on Taiwan has been launched, targeting the high-growth global semiconductor industry while simultaneously pursuing high monthly dividend income purely from dividends.

Samsung Asset Management announced on the 23rd that it will list the monthly dividend-type ‘KODEX Taiwan Tech High Dividend Dow Jones ETF,’ which invests in Taiwanese tech companies leading the global semiconductor industry.

The KODEX Taiwan Tech High Dividend Dow Jones ETF tracks an index developed to suit Taiwan’s industrial characteristics and tech companies by utilizing the index methodology of the US representative dividend ETF ‘SCHD.’ This product is a ‘Taiwan version of SCHD’ ETF that applies SCHD’s methodology of selecting dividend growth companies among Taiwanese tech firms growing in the global artificial intelligence (AI) chip value chain, carefully selecting only verified high-dividend tech companies.

The Taiwanese government has long actively encouraged Taiwanese companies to increase their dividend payout ratios to stabilize the stock market. In fact, Taiwan emerged as a high-dividend country by introducing dividend-friendly policies such as the corporate excess profit retention tax since 1998. Over the past 10 years, the average dividend yield of the Taiwan stock market was 4%, about twice as high as South Korea (2.1%) and the US (2.2%). (Source: Bloomberg)

Taiwan has formed a semiconductor alliance with the US and supplies AI-dedicated chips to major big tech companies such as Microsoft (MS), Nvidia, and AMD, directly benefiting from the growth of the global AI semiconductor industry. More than 50% of the world’s semiconductors are produced in East Asia, including Taiwan, and AI-dedicated chips under 10 nm (1 nm = one billionth of a meter) are produced in Taiwan.

The KODEX Taiwan Tech High Dividend Dow Jones ETF invests in key Taiwanese tech companies in the global semiconductor industry, which is expected to grow significantly due to the global AI boom, aiming for 100% capital gains while also offering an expected annualized monthly dividend income of 5-7% purely from the dividends of these companies.

Manager I Ga-hyun of Samsung Asset Management said, “The high growth of the Taiwan weighted stock market is thanks to the outstanding performance of Taiwanese tech companies with global competitiveness that pay high dividends,” and added, “It is suitable for investors seeking both growth and high monthly dividend income simultaneously.”

Samsung Asset Management is holding an event to commemorate the launch of this product, encouraging participants to share content about the product on their social networking services (SNS).