Core Viewpoint - The competition among high dividend ETFs is intensifying, potentially driving the growth of ETF assets in Hong Kong, with some ETFs achieving dividend yields as high as 17% [2][4]. Group 1: High Dividend ETF Competition - The "winner-takes-all" dynamic in the high dividend ETF sector may lead issuers to launch more funds with higher dividend yields [4]. - The Global X HSCEI Covered-Call ETF (3416.HK) has the highest dividend yield at 17%, while the Hang Seng High Dividend 30 ETF (3466.HK) ranks second among non-derivative funds with a yield of 7% [4][6]. - The success of these ETFs is attributed to their attractive dividend yields, which can attract new assets if new products offer even higher yields [4]. Group 2: Market Trends and Fund Flows - The Hang Seng High Dividend 30 ETF and Global X HSCEI Covered-Call ETF have gained significant popularity among retail investors, leading to substantial fund inflows [7]. - The Global X HSCEI Covered-Call ETF's assets under management have surged 20 times since its launch, indicating strong liquidity and rapid growth [7]. - In May, both ETFs ranked among the top 20 most traded ETFs in Hong Kong, a shift from the traditional dominance of beta, leveraged, and inverse ETFs [7]. Group 3: Future Outlook for ETFs in Hong Kong - The number of new ETFs launched in Hong Kong this year is expected to set a record, with 25 ETFs already listed, surpassing the same period in previous years [9]. - The interest in Global X's HSCEI Covered-Call ETF is notably high, with its assets under management reaching $250 million, significantly higher than its peers [9][10]. - The Hang Seng High Dividend 30 ETF has consistently recorded fund inflows since its launch and is expected to maintain this momentum, presenting arbitrage opportunities for market makers [10].

Group 1 - TSMC's stock price has declined by 3.7% this year, while UMC's stock has increased by 11%, highlighting TSMC's underperformance compared to its competitor [1] - UMC's high dividend yield of over 6% has made it a significant holding in Taiwan's high-dividend ETFs, which have attracted approximately $10 billion in inflows this year [1] - TSMC is not included in the core holdings of the three major high-dividend ETFs in Taiwan, which prefer UMC due to its higher yield [1] Group 2 - TSMC remains fundamentally strong, reporting May revenue of NT$320.5 billion (approximately $10.7 billion), with a year-on-year growth of 39.6% [2] - Analysts expect TSMC's sales to grow by 39% in the second quarter [2]