Taiwan's First Active ETF Announces Inaugural Dividend of NT$0.328 per Unit

Key facts

• 00980A is Taiwan's first active ETF, listed on the Taiwan Stock Exchange.
• The fund announced an inaugural dividend of NT$0.328 per unit, with ex-dividend date on November 18, 2025.
• Based on the closing price of NT$14.89, the single distribution yield is 2.2%.
• Foreign investors have net bought over NT$600 billion in Taiwan stocks since April 2025.
• Net inward remittances from foreign investors have exceeded NT$3 trillion since 2023.
• Nomura Asset Management Taiwan manages NT$763 billion in assets, ranking 8th among local fund houses.

Inaugural Payout Marks Milestone for Active ETFs in Taiwan

Taiwan's first active exchange-traded fund, the Nomura Taiwan Smart Select Active ETF (ticker: 00980A), announced its maiden dividend distribution on October 31, 2025. The fund will pay an estimated NT$0.328 per unit to investors who purchase shares by the final subscription date of November 17. The ex-dividend date is set for November 18, with the payout scheduled for December 12. The quarterly distribution translates to a single-period yield of 2.2% based on the fund's closing price of NT$14.89 on the announcement day. The launch of 00980A represents a significant expansion of Taiwan's ETF market, which has traditionally been dominated by passive index-tracking funds.

Active Management Combines Fundamental Research with Quantitative Models

Unlike passive ETFs that replicate an index, 00980A employs a team of professional managers who actively select stocks using a blend of fundamental qualitative analysis and quantitative factor models. The fund's manager, Yu Ching-te, who heads Nomura's global integrated investment solutions division, explained that the strategy focuses on three key dimensions: earnings growth potential, attractive valuation, and positive momentum. The qualitative analysis is built on the Nomura Taiwan equity team's proprietary research, which includes on-site company visits and in-depth assessments of financial fundamentals and industry prospects. The quantitative component uses historical data to identify factors that drive excess returns, allowing the fund to dynamically adjust its portfolio weights across growth, value, and momentum styles based on market conditions.

Robust Foreign Capital Inflows and AI Boom Propel Taiwan Market

The fund's launch coincides with a sustained rally in Taiwan's stock market, fueled by strong foreign investor appetite and the artificial intelligence boom. Nomura's deputy head of investment strategy, Chang Chi-wen, noted that foreign investors have net purchased over NT$600 billion in Taiwanese equities since April 2025, pushing the benchmark index to repeated record highs. Cumulative net inward remittances have exceeded NT$3 trillion since 2023, indicating a structural shift in foreign confidence. Chang attributed the inflows to a combination of geopolitical stability and technology-driven growth, arguing that the trend is not merely cyclical but long-term. The U.S. Federal Reserve's recent quarter-point rate cut and its announcement to end balance sheet reduction in December have further supported risk assets, while strong earnings from Microsoft, Amazon, and Apple have boosted AI-related supply chains in Taiwan.

TSMC's Record Earnings and Robotics Outlook Strengthen Investment Case

Taiwan Semiconductor Manufacturing Co., a cornerstone of the local market, reported its strongest quarterly results ever in the second quarter of 2025. Dollar-denominated revenue surpassed $30 billion for the first time, with gross margins holding at 58.6%. More importantly, revenue and profit in New Taiwan dollars exceeded all expectations, with net profit surging 60% year-on-year, alleviating concerns over currency losses. TSMC Chairman C.C. Wei highlighted that demand for high-performance computing driven by AI remains exceptionally robust, prompting the company to maintain elevated capital expenditure. Wei also projected that humanoid robots could represent a market ten times larger than electric vehicles, positioning robotics as a key growth driver for the coming years. Nvidia CEO Jensen Huang echoed this sentiment, calling robotics the next potential trillion-dollar industry after AI.

Active ETFs Gain Traction Globally as Investors Seek Flexibility

The introduction of active ETFs in Taiwan mirrors a global trend. In the United States, where the first active ETF debuted in 2008, Deloitte forecasts that assets under management will grow from $856 billion in 2024 to $10.9 trillion by 2035, a 13-fold increase representing a compound annual growth rate of 26%. This pace far exceeds that of passive ETFs and mutual funds. Nomura's Yu Ching-te emphasized that active ETFs offer the dual advantage of potential alpha generation and exchange-traded liquidity. The fund typically holds 50 to 80 listed stocks, with no single position exceeding 10% of assets and the top ten holdings capped at 60%. Sector allocation spans electronics, financials, shipping, and other industries, providing diversification while capitalizing on Taiwan's tech ecosystem.

Market Outlook: Cautious Optimism Amid Tariff Uncertainties

Despite the positive momentum, fund managers advise vigilance. Nomura noted that while the 10-day moving average holds, the bullish trend remains intact, but high-level consolidation and profit-taking pressures persist. The fund's investment strategy focuses on four themes: strong bargaining power, U.S.-based manufacturing, scale advantages, and technological leadership in oligopolistic markets. Yu pointed out that U.S. tariff policies introduce significant uncertainty, but corporate fundamentals and industry trends offer rare predictability. TSMC's first-quarter revenue of $25.5 billion, which hit the high end of guidance, and Alphabet's better-than-expected results underscore sustained AI demand. With the current price-to-earnings ratio of the Taiwan stock market at 15-16 times—near its five-year average—and earnings per share continuing to grow, valuations still have room for upward revision.

The bottom line

• 00980A is Taiwan's first active ETF, combining active stock selection with exchange-traded flexibility.
• The fund's inaugural dividend of NT$0.328 per unit yields 2.2% quarterly.
• Foreign capital inflows into Taiwan have exceeded NT$600 billion since April 2025, driven by AI and tech growth.
• TSMC's record Q2 2025 earnings and robotics outlook underpin market optimism.
• Global active ETF assets are projected to grow 13-fold by 2035, outpacing passive funds.
• Investors should monitor U.S. tariff developments and potential volatility in high-flying tech stocks.