First Financial Trust: AI Trend Just Beginning, Launches Second Actively Managed Taiwan Stock ETF

Actively managed Taiwan stock ETFs have become a new mainstream investment this year. According to the latest statistics from the Investment Trust and Advisory Association as of the end of May, there are now 18 actively managed equity ETFs focused on Taiwan stocks, with total assets reaching NT$771.7 billion. First Financial Trust announced today the launch of its second such product, the Active First Financial Premium Dividend ETF (00408A).

Gao Zijing, General Manager of First Financial Trust, stated today that Taiwan has ridden the current wave of AI development and become a global focal point. He believes the medium- to long-term AI trend has only just begun. However, after significant price gains and rising margin financing, short-term capital is shifting toward low-base stocks. With the launch of 00408A, First Financial Trust aims to balance income and growth, aligning with the upcoming dividend and rights distribution season.

Fund Manager Zhang Zhengzhong of First Financial Trust analyzed that the recent rise in the Taiwan stock market has been solid, supported by strong fundamentals, primarily driven by substantial upward revisions in corporate earnings, with valuations not excessively deviating.

Zhang observed that in recent years, high-dividend ETFs have been popular in Taiwan, reflecting investors’ demand for stable income and cash flow. However, traditional passive high-dividend ETFs select stocks based mainly on historical dividend yields and payout records, making it difficult to promptly capture momentum from rapidly rotating industries and emerging themes.

The newly launched 00408A is positioned as a next-generation actively managed high-dividend ETF. It will open for pre-orders on June 18, with formal fundraising starting on June 24. The issue price is NT$10 per unit, with quarterly dividend distributions, and is expected to be listed in mid-July.

00408A is the second actively managed Taiwan stock ETF launched by First Financial Trust. The first, Active First Financial Taiwan Equity Advantage (00994A), launched earlier this year, also draws from Taiwan’s top 500 market-cap companies but focuses more on stock price performance, targeting strong sectors and potential high-growth stocks. Zhang Zhengzhong, who manages both ETFs, explained the strategic distinction: 00994A is designed for aggressive growth, while 00408A offers a balanced offensive and defensive approach. (Editor: Zhang Liangzhi)