Taishin U.S. Non-Investment Bond ETF 00989B Third dividend distribution NT$0.088 Annualized yield 10.53%

According to investment statistics, 00989B has a dividend of 0.088 yuan, and the annualized yield has exceeded 10% for two consecutive months. (Photo by reporter Wang Menglun)

[Reporter Wang Menglun/Taipei Report] Taishin U.S. Non-Investment Bond ETF (00989B) will handle its third dividend distribution. According to the latest announcement on the official website of Taishin Investment Trust, "00989B" is estimated to allot 0.088 yuan per unit in September. Based on the closing price of 10.03 yuan on September 2, the annualized dividend rate reaches 10.53%, which has exceeded 10% for two consecutive months. Taishin Investment Trust said that the Taishin U.S. Non-Investment Bond ETF (00989B) is expected to go ex-dividend on September 15, and September 14 will be the last buying day. Investors who participated in this ex-dividend will receive their dividends on October 7.

Taishin U.S. Non-Investment Bond ETF (00989B) Jian Dawei said that on August 28, Kevin Warsh gave his first important speech as Chairman of the Federal Reserve at Jackson Hole. Although he did not directly state that he would raise interest rates in September, he has re-established a hawkish policy response function: the 2% PCE target remains unchanged, employment is close to full employment, and financial conditions are not tight. Therefore, if the rate of inflation decline is insufficient, further raising interest rates is policy rational. After the speech, market pricing for a 25bps interest rate hike in September rose from about 35% to 55-58%, and cumulative interest rate hike expectations for the year increased by about 10bps to 38bps. It shows that the market is mainly repricing short-term policy interest rates, while long-term inflation expectations are relatively stable.

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Jian Dawei pointed out that if the interest rate hike in September leads to a slowdown in the future economy, groups with higher default risks with CCC grade credit ratings will be under greater pressure to widen interest rate spreads. It is recommended to transfer funds to higher-rated non-investment grade bonds with high interest rates and relatively stable finances, such as B~B grades, retain exposure to issuers with sound fundamentals, strong cash flows, and healthy liability structures, and avoid excessive pursuit of targets with high yields but high default risks. U.S. non-investment bonds ETF relies on its two core defensive advantages of "short duration" and "higher coupon income". It is limited by interest rate fluctuations and has relatively stable price performance.

Therefore, the legal person recommends that investors who want to pursue interest rates on deposits and bonds can lock in such a stable interest-earning portfolio that takes into account both growth and defense.

Looking further, 00989B mainly targets BB-rated and B-rated corporate bonds. It is a leading industrial enterprise with a large scale and relatively stable operations, and the company's default rate is extremely low. At the same time, in order to strengthen the defensive power of ETFs, the 00989B tracking index strictly controls the proportion of a single industry below 10% to avoid the impact of the overall assets due to a single industry's boom reversal.

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