Investors are funding 85% of dividends at one Taiwan ETF

November 24, 2023--Regulator has introduced mandatory disclosures of dividend composition after receiving complaints
One of Taiwan's most popular high-dividend exchange traded funds has announced that 85 per cent of its monthly payout in November was taken from investor capital rather than corporate dividends or capital gains.

The disclosure follows the introduction of new rules earlier this month by the Financial Supervisory Commission requiring fund houses to start disclosing the dividend composition of ETFs.

The move was announced in September after the FSC received complaints that the proportion of dividends paid out via a "earnings equalisation mechanism" was too high.