High-Dividend ETFs Face Dividend Reduction

Recent reports regarding the high-dividend ETFs, 00929 and 00940, have drawn significant attention from investors due to a notable decrease in their dividend rates. Some analysts have even indicated that the reduction in dividends may range from 20% to as much as 50%. This development has sparked concern among many holders about the potential impacts on their future profits. In light of this situation, experts are urging investors to reassess their investment strategies, particularly those who had anticipated a 10% high dividend yield. With changing market conditions, the likelihood of achieving such high dividends in the future seems low. Investors who can accept returns in the range of 6-8% may find more viable strategies amid market fluctuations. Additionally, experts recommend that ETF companies consider lowering the dividend rate to below 3% to ensure stability in net value and pave the way for future growth. Moreover, for investors holding U.S. bond ETFs and facing significant losses, it is advised to avoid increasing their positions and to consider reallocating their funds to different investment opportunities to protect capital efficiency. This cautious approach is critical as the market volatility continues to expose investors to heightened risks and uncertainties. Ultimately, long-term investment should emphasize stability in returns rather than excessive pursuit of high dividend yields.