Have you heard about the Taiwanese ETF that's been outperforming all others with a staggering 28% return in just four months? Meet the 00909 Cathay Digital Payment Services ETF - Taiwan's sole cryptocurrency-related ETF that lets you tap into the crypto boom without directly holding volatile digital assets like Bitcoin.
👉 Discover how this ETF mirrors Bitcoin's growth without the extreme volatility
Key Highlights of 00909 ETF
Basic Profile
- Listing Date: July 13, 2022 (IPO price: NT$15)
- Current Price: NT$29.82 (as of March 2024)
- Tracking Index: Solactive Global Digital Payment Services Index
- Dividend Policy: Annual distribution every April
- Risk Level: RR5 (High risk)
- Expense Ratio: 0.95% annually (0.80% management fee + 0.15% custodial fee)
Investment Strategy
00909 employs full replication to track companies across three key sectors:
- Digital payment platforms
- Digital asset software
- Digital asset infrastructure
"This unique approach gives investors exposure to cryptocurrency ecosystems without owning coins directly," explains financial analyst Rice Congee.
Composition Breakdown
Geographic Allocation
| Region | Percentage |
|---|---|
| North America | 89.11% |
| Japan | 9.47% |
| Others | 1.42% |
Sector Distribution
- Cryptocurrency-related: 62% (mining, exchanges, semiconductors)
- Payment services: 38% (including Visa and Mastercard)
Top Holdings
- MicroStrategy (Largest corporate Bitcoin holder)
- Coinbase (Leading US crypto exchange)
- Nvidia & AMD (Semiconductor powerhouses)
- Visa & Mastercard (Payment giants)
Performance Analysis
Dividend History
| Year | Dividend per Share | Yield |
|---|---|---|
| 2023 | NT$1.23 | 4.8% |
| 2024* | NT$1.81 | 6.0% |
*Projected
Price Movement
- 2024 YTD Growth: +28%
- Correlation with Bitcoin: 0.6+
Compared to Major ETFs:
- Outperformed 0050 (Taiwan 50) by 18%
- Beat 0056 (High Dividend) by 21%
Investment Considerations
✔️ Advantages
- Low overlap with traditional Taiwanese ETFs
- Built-in diversification across crypto ecosystem
- Tax efficiency (Qualifies as overseas income)
- Trend momentum with Bitcoin halving event approaching
❌ Risks
- High volatility (RR5 risk rating)
- Steep learning curve for crypto beginners
- Above-average fees compared to local ETFs
FAQ: Your Top Questions Answered
Q1: Does 00909 actually hold Bitcoin?
A: No. It invests in companies that enable cryptocurrency ecosystems (exchanges, miners, payment processors) rather than holding coins directly.
Q2: How often does the ETF rebalance?
A: The underlying index rebalances twice yearly (January and July).
Q3: What's the minimum investment amount?
A: You can purchase single shares (currently ~NT$29.82) through any Taiwanese brokerage account.
Q4: Is this suitable for conservative investors?
A: Due to its RR5 classification, it's best suited for investors comfortable with high volatility.
Q5: How does this compare to US Bitcoin ETFs?
A: While US ETFs hold Bitcoin directly, 00909 provides indirect exposure through crypto-adjacent businesses - offering a middle ground between traditional stocks and pure crypto plays.
Final Verdict
The 00909 Cathay Digital Payment Services ETF presents a compelling opportunity for Taiwanese investors seeking crypto exposure without navigating unregulated exchanges. Its unique positioning has delivered impressive returns, though the RR5 rating demands careful risk assessment.
👉 Learn more about balanced crypto investment strategies
Remember: Past performance doesn't guarantee future results. Always consult a financial advisor before making investment decisions.