Beginner’s Must-Read Guide to Investing in Taiwan Stocks: 2025 Top 5 ETFs + Full Allocation Strategies

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Are you also eager to start investing but overwhelmed by endless stock ticker symbols and don’t know where to begin? You’re not alone. By the end of 2023, Taiwan had over 12.27 million securities accounts. In Q1 2025, Taiwan’s ETF assets under management reached USD 198.5 billion, making ETFs the top choice for many investors.

2025 Beginner-Friendly Taiwan ETF List: 0050, 00878, 00713, 00919, 00929

This list is tailor-made for beginners. It includes market-cap-weighted ETFs that track the broad market, high-dividend ETFs that provide steady cash flow, and tech-themed ETFs with strong growth potential — everything you need to build a solid, balanced foundation in the Taiwan stock market.

Key Takeaways

• Beginners investing in Taiwan stocks can start with these five ETFs: 0050, 00878, 00713, 00919, 00929.
• Market-cap ETFs form the core, high-dividend ETFs deliver stable income, and tech ETFs chase higher growth.
• Allocation ratios should match your personal risk tolerance.
• Choose among three models: Conservative Steady, Balanced Growth, or Aggressive Growth.
• Dollar-cost averaging + long-term holding is the proven path to ETF success — it reduces risk and builds saving discipline.

The Rock-Solid Foundation: Market-Cap-Weighted ETFs

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Think of building a house — the foundation determines everything. Market-cap-weighted ETFs are exactly that foundation for your portfolio. Their simple goal: buy a basket of Taiwan’s largest, most representative companies so you grow alongside the overall Taiwan economy.

Investing in these ETFs means you’re bullish on Taiwan’s long-term future. Short-term volatility exists, but historical data shows impressive long-term returns. The chart below shows the Taiwan Capitalization Weighted Stock Index (TAIEX) annual returns over the past decade — ups and downs, but a clear upward trend over time.

0050 Yuanta Taiwan Top 50

006208 Fubon Taiwan 50

When talking about Taiwan market-cap ETFs, everyone knows 0050 Yuanta Taiwan Top 50. It tracks the Taiwan 50 Index — the 50 largest companies by market cap — and is the oldest and largest Taiwan equity ETF.

But there’s another excellent twin: 006208 Fubon Taiwan 50. They track the exact same index with nearly identical holdings. Key differences:

• Expense ratio: 006208 usually has a slightly lower total expense ratio, saving you a bit over the long run.
• Share price: 006208 has a lower per-share price, making it more friendly for small-amount or spare-change investing.

Important reminder — TSMC’s double-edged sword These market-cap ETFs hold ~50% in TSMC (2330). Their performance is heavily tied to TSMC’s stock price. When TSMC flies, your ETF soars; when TSMC corrects, your ETF feels the pain. That’s both the growth driver and the concentration risk to watch.

Cash Flow Engine: Comparison of Three High-Dividend ETFs

Once you’ve laid the market-cap foundation, the next step is adding “cash flow.” High-dividend ETFs exist to generate regular dividend income — like getting a paycheck from your investments. You can reinvest it or use it for living expenses, letting your money work for you.

Many successful passive-income strategies rely on this steady cash distribution. These ETFs select financially strong, mature companies that consistently share profits with shareholders.

Here are the three most representative high-dividend ETFs with distinct styles.

00878 Cathay Sustainability High Dividend

00878 is Taiwan’s “national ETF” — often #1 in beneficiary count. Its biggest feature: combines high dividend with ESG.

• Selection logic: From companies meeting ESG criteria, it picks the top 30 by past and expected future dividend yield — good companies that pay well and care about sustainability.
• Performance: Thanks to many stable traditional and financial stocks, 00878 often shows better downside protection than the broad market.

Best for you if: You’re conservative, want quarterly dividends to start building passive income, and value stability during volatility.

00713 Yuanta Taiwan High Dividend Low Volatility

00713 spells out its strategy in the name: high dividend + low volatility.

• Selection logic: Complex screening beyond just yield — includes earnings stability, profitability, and low price volatility to find “honor roll” dividend stocks.
• Performance: May lag in strong bull markets but often shows stronger defense in bear markets with smoother NAV movement.

Best for you if: You need reliable cash flow but hate big swings — you prioritize “peaceful” dividends over maximum returns.

00919 Capital TIP Customized Taiwan Select High Dividend

00919 is the rising star among high-dividend ETFs, famous for ultra-high yields and precise selection.

• Selection logic: Rebalances twice yearly — May based on already-announced dividends, December based on EPS growth to front-run next year’s payouts.
• Performance: Frequently achieves ~10% annualized yield even after occasional cuts. Higher turnover means bigger price swings than 00878/00713.

Best for you if: You’re an aggressive dividend investor who prioritizes maximum cash yield and can tolerate higher volatility.

Quick comparison table:

Growth Engine: Tech-Themed ETF

If market-cap ETFs are the foundation and high-dividend ETFs are steady cash flow, then tech-themed ETFs are the “offensive weapon” 🚀. Their mission: capture explosive growth from Taiwan’s globally competitive tech sector.

Over the long run, tech stocks drive most market gains. In 2025, with global AI demand still soaring, Taiwan’s tech industry enjoys massive tailwinds — the government raised 2025 GDP growth forecast to 7.37% thanks to AI chips and servers.

00929 Fuh Hwa Taiwan Technology Dividend Appreciation

00929 is Taiwan’s first monthly-distribution tech ETF, focusing purely on high-quality dividend-paying tech stocks.

• Selection logic: 100% electronics/tech sector, selects 40 stocks with both strong earnings and attractive dividends — a basket of Taiwan’s tech elite.
• Performance: As an aggressive player, volatility is high. When tech booms, gains are spectacular; when tech corrects, drawdowns can be sharp — classic sector concentration trade-off.

Best for you if: You’re extremely bullish on Taiwan tech and AI, want monthly cash flow, and are willing to accept higher risk for higher long-term returns.

Beginner Essential: Build Your Own Taiwan ETF Portfolio

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Congratulations! You now know these five powerful ETFs — think of them as five premium Lego bricks. The most important next step is learning how to combine them into your personal portfolio.

Owning one ETF is good, but spreading money across different strategies unlocks the true power of diversification.

Investment wisdom: Never put all your eggs in one basket

Combining market-cap, high-dividend, and tech ETFs reduces risk from any single sector or strategy. When tech struggles, stable dividend ETFs provide support; during sideways markets, dividends keep cash flowing. That’s the magic of a blended portfolio — smoother and longer-lasting growth.

How to decide allocation ratios? It depends entirely on your risk tolerance — defined by the SEC as “how much money you are willing and able to lose for the possibility of greater returns.”

Ask yourself two questions:

• Willingness: If the market drops 20%, would you panic-sell or see it as a buying opportunity?
• Ability: When do you need the money? Do you have stable income?

Then choose one of these three classic models.

Conservative Steady Model

Goal: Capital preservation + steady income

• Best for: Near-retirees, very risk-averse beginners, saving for a near-term goal (e.g., house down payment)
• Strategy: Heavy on defensive, low-volatility assets

This model trades away explosive upside for peaceful sleep during turbulence.

Balanced Growth Model

The most popular model — balances growth and risk control.

• Best for: Young professionals 10+ years from retirement who want both growth and income
• Strategy: Market-cap as backbone, mix of dividend styles + some tech

You enjoy bull market fireworks while dividends cushion corrections — ideal for most beginners.

Aggressive Growth Model

Goal: Maximize long-term growth, accept higher volatility

• Best for: Young investors with high risk tolerance and strong belief in Taiwan tech
• Strategy: Heavy on highest-growth assets

Risk warning: This model can experience sharp drawdowns during tech corrections, but offers the highest potential long-term returns if the thesis plays out.

You now understand the roles: 0050/006208 = core foundation, 00878/00713 = steady cash flow, 00919/00929 = growth engines. Use the models above to build your personalized mix.

While active ETFs exist, they come with higher fees and inconsistent performance. For beginners, passive ETFs are the safer starting point.

The secret to success in Taiwan ETFs is simple: dollar-cost average + hold long-term. Take your first step today!

FAQ

How do I start buying these ETFs?

Open a securities account first — either in-person at traditional brokers (Yuanta, Fubon) or online via many digital banking apps. Once approved, you can buy ETFs during market hours.

What is dollar-cost averaging and why do beginners love it?

Dollar-cost averaging means investing a fixed amount on a fixed date (e.g., the 6th of every month). It buys at average prices without guessing tops/bottoms.

It’s the ultimate lazy-yet-effective method for beginners — reduces risk and builds saving discipline.

Where do ETF dividends go?

Dividends are automatically deposited into your designated settlement bank account, usually ~1 month after the ex-dividend date. Check your broker app for exact schedule.

Do I pay tax on ETF investments?

Capital gains from selling ETFs are currently tax-free in Taiwan. Dividends are counted as income but exempt from the 2nd-generation health insurance premium if under NT$20,000 per payout — very friendly for small investors.