UMC’s dividend yield of more than 6% has given it substantial exposure to Taiwan’s high-dividend ETFs, which collectively manage more than US$44 billion ($56.53 billion) in assets, Bloomberg data show.
Taiwan Semiconductor Manufacturing Co.’s (TSMC) stock is lagging smaller rival United Microelectronics Corp. (UMC) after being brushed aside by some of Taiwan’s biggest yield-focused exchange-traded funds.
Shares of TSMC, the world’s largest contract chipmaker, have dropped 3.7% this year, compared to an 11% gain for UMC, according to data compiled by Bloomberg.
