Taiwan to crack down on payout mechanism for high-dividend ETFs
September 12, 2023--New investors' money is often used to boost dividends that would otherwise be diluted by huge inflows |
Such ETFs set aside a portion of invested funds, often from newer subscribers, to mitigate the dilution of the percentage paid out in dividends due to existing investors in the ETF. The regulator instead wants to ensure that such payouts should largely come from "dividends and bond yield". |