{"id":23744,"date":"2024-05-29T17:59:51","date_gmt":"2024-05-29T09:59:51","guid":{"rendered":"https:\/\/www.tejwin.com\/?post_type=insight&#038;p=23744"},"modified":"2026-03-02T09:51:09","modified_gmt":"2026-03-02T01:51:09","slug":"high-dividend-etf","status":"publish","type":"insight","link":"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/","title":{"rendered":"The Gospel for Dividend Investors? Backtesting Performance of High Dividend ETF"},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter size-full caption-align-center\"><img fetchpriority=\"high\" decoding=\"async\" width=\"4471\" height=\"3357\" src=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/Assorted-Coins-Close-up.jpg\" alt=\"High Dividend ETF\" class=\"wp-image-23585\" style=\"aspect-ratio:3\/2;object-fit:cover\" srcset=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/Assorted-Coins-Close-up.jpg 4471w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/Assorted-Coins-Close-up-300x225.jpg 300w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/Assorted-Coins-Close-up-1024x769.jpg 1024w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/Assorted-Coins-Close-up-150x113.jpg 150w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/Assorted-Coins-Close-up-768x577.jpg 768w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/Assorted-Coins-Close-up-1536x1153.jpg 1536w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/Assorted-Coins-Close-up-2048x1538.jpg 2048w\" sizes=\"(max-width: 4471px) 100vw, 4471px\" \/><figcaption class=\"wp-element-caption\">Photo by <a href=\"https:\/\/unsplash.com\/@joshappel?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" target=\"_blank\" rel=\"noopener\">Josh Appel<\/a> on <a href=\"https:\/\/unsplash.com\/photos\/close-up-photo-of-assorted-coins-NeTPASr-bmQ?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" class=\"ek-link\" target=\"_blank\" rel=\"noopener\">Unsplash<\/a><\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a10b7a3985b1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a10b7a3985b1\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Highlight\" >Highlight<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Preface\" >Preface<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#What_is_High_Dividend_Yield\" >What is High Dividend Yield?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#High_Dividend_ETF\" >High Dividend ETF<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Editing_Environment_and_Module_Requirements\" >Editing Environment and Module Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Data_Import_and_Create_a_Logbook_to_Record_Dividend_Information\" >Data Import and Create a Logbook to Record Dividend Information<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Create_backtest_environment\" >Create backtest environment<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Select_High_Dividend_ETF_Data\" >Select High Dividend ETF Data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Build_a_daily_trading_environment\" >Build a daily trading environment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Build_the_Trading_Strategy\" >Build the Trading Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Execute_the_Trading_Strategy\" >Execute the Trading Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Review_Dividend_Information_During_the_Backtesting_Period\" >Review Dividend Information During the Backtesting Period<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Performance_Evaluation\" >Performance Evaluation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Comparing_the_dividend_performance_of_High_Dividend_ETF_and_Market_Capitalization_ETF\" >Comparing the dividend performance of High Dividend ETF and Market Capitalization ETF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/high-dividend-etf\/#Extended_Reading\" >Extended Reading<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Highlight\"><\/span>Highlight<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Article Difficulty\uff1a\u2605\u2606\u2606\u2606\u2606<\/li>\n\n\n\n<li>Exploring the Relationship Between High Dividend ETF, Weighted Returns, and Calculating the Total Dividend Yield.<\/li>\n\n\n\n<li>Using the TQuant Lab Backtesting Platform to Develop a Buy-and-Hold Strategy for High Dividend ETF and Backtest the Risk and Performance.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Preface\"><\/span>Preface<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_High_Dividend_Yield\"><\/span>What is High Dividend Yield?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>High dividend yield, as the name suggests, refers to companies distributing higher profits to investors in cash dividends without a specific definition of what constitutes a high dividend. While high dividend yield may sound appealing at first glance, it&#8217;s essential to recognize that every investment has pros and cons. Before entering into high-dividend ETFs, it&#8217;s crucial to consider the following two points to evaluate the most suitable investment approach : <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pay attention to a company&#8217;s profitability:<\/strong> High dividends do not equal high returns. If a company is not making a profit or is incurring losses, even high dividend payouts are meaningless.<\/li>\n\n\n\n<li><strong>Future investment development:<\/strong> When a company is profitable, it can use the funds for more investments, enhancing its value. However, if it provides high dividends to investors, the amount available for company investment will remain the same, potentially limiting its growth.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"High_Dividend_ETF\"><\/span>High Dividend ETF<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This article will select the top 5 popular high-dividend ETFs in the market as investment targets:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong><em>0056<\/em>&#8216;s<\/strong> full name is &#8220;<strong>Yuanta Taiwan Dividend Plus ETF<\/strong>&#8221; which tracks the &#8220;<strong>FTSE TWSE Taiwan Dividend+ Index<\/strong>&#8220;<\/li>\n\n\n\n<li><strong><em>00713<\/em>&#8216;s<\/strong> full name is &#8220;<strong>Yuanta FTSE4Good TIP Taiwan ESG ETF<\/strong>&#8221; which tracks the &#8220;<strong>FTSE4Good TIP Taiwan ESG Index<\/strong>&#8220;<\/li>\n\n\n\n<li><strong><em>00878&#8217;s<\/em><\/strong> full name is &#8220;<strong>Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF<\/strong>&#8221; which tracks the &#8220;<strong><strong>MSCI Taiwan Select ESG Sustainability High Yield Top 30 Index<\/strong><\/strong>&#8221; MSCI stands for Morgan Stanley Capital International, one of the world&#8217;s three major index companies.<\/li>\n\n\n\n<li><strong><em>00919&#8217;s<\/em><\/strong> full name is &#8220;<strong>CAPITAL TIP CUSTOMIZED TAIWAN SELECT HIGH DIVIDEND EXCHANGE TRADED FUND<\/strong>&#8221; which tracks the &#8220;<strong>Customized Taiwan Select High Dividend Index<\/strong>&#8220;<\/li>\n\n\n\n<li><strong><em>00929&#8217;s<\/em><\/strong> full name is &#8220;<strong>Fuh Hwa Taiwan Technology Dividend Highlight ETF<\/strong>&#8221; which tracks the &#8220;<strong>Taiwan Technology Dividend Highlight Index<\/strong>&#8220;<\/li>\n<\/ol>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-100 has-custom-font-size\" style=\"font-size:22px\"><a class=\"wp-block-button__link has-background wp-element-button\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/databank-solution\/market-data\/\" style=\"border-radius:13px;background:linear-gradient(135deg,rgb(242,218,123) 0%,rgb(69,177,141) 53%,rgb(51,106,181) 100%)\"><strong>Learn More About the High-Quality ETF Database by TEJ!<br>Construct Trading Strategies With Market Data. <\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Editing_Environment_and_Module_Requirements\"><\/span>Editing Environment and Module Requirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This article uses MacOS and VS code as the editor.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Data_Import_and_Create_a_Logbook_to_Record_Dividend_Information\"><\/span>Data Import and Create a Logbook to Record Dividend Information<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<pre class=\"wp-block-code\"><code>import os\nimport pandas as pd\n\ntej_key = 'your key'\napi_base = 'https:\/\/api.tej.com.tw'\n\nos.environ&#91;'TEJAPI_KEY'] = tej_key \nos.environ&#91;'TEJAPI_BASE'] = api_base\n\nstart = '2018-01-01'\nend = '2023-12-31'\nstock_list = &#91;'0056', '00713', '00878', '00919', '00929', 'IR0001']\ncalendar_name = 'TEJ'\n\nos.environ&#91;'mdate'] = start + ' ' + end\nos.environ&#91;'ticker'] = ' '.join(stock_list)\n\n!zipline ingest -b tquant\n\nlog_handler = FileHandler('log.txt',\n                            format_string='&#91;{record.time:%Y-%m-%d %H:%M:%S.%f}]: ' +\n                            '{record.level_name}: {record.func_name}: {record.message}',\n                            level=INFO)\n\nlog_handler.push_application()\nlog = Logger('Algorithm')<\/code><\/pre>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Create_backtest_environment\"><\/span>Create backtest environment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Select_High_Dividend_ETF_Data\"><\/span>Select High Dividend ETF Data<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Next, we are going to build the backtest environment. First, we could collect multiple targets&#8217; quantitative indicators and price and volume data. In this case, we used it to obtain data on five High Dividend ETFs, which can avoid processing stocks that have yet to be listed.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full caption-align-center\"><img decoding=\"async\" width=\"764\" height=\"588\" src=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/pipeline-1.png\" alt=\"High Dividend ETF\" class=\"wp-image-23612\" srcset=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/pipeline-1.png 764w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/pipeline-1-300x231.png 300w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/pipeline-1-150x115.png 150w\" sizes=\"(max-width: 764px) 100vw, 764px\" \/><figcaption class=\"wp-element-caption\">Displaying data results<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Build_a_daily_trading_environment\"><\/span>Build a daily trading environment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Slippage cost<\/li>\n\n\n\n<li>Commission fees<\/li>\n\n\n\n<li><strong>Returns Index (<em>IR0001<\/em>)<\/strong> as the benchmark index<\/li>\n\n\n\n<li>Import the above-calculated data result into the transaction process<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Build_the_Trading_Strategy\"><\/span>Build the Trading Strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The function below is essential for building a trading strategy. It will be called every day after the backtest starts. <span style=\"text-decoration: underline;\" class=\"ek-underline\">The main task of this article is to set an order equal to 25% of the current value of the investment portfolio.<\/span><\/p>\n\n\n\n<pre class=\"wp-block-code\"><code>def handle_data(context, data):\n    out_dir = pipeline_output('mystrats')\n    \n    for asset in out_dir.index:\n        stock_position = context.portfolio.positions&#91;asset].amount\n        if stock_position == 0:\n            order_percent(asset, 0.25)<\/code><\/pre>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Execute_the_Trading_Strategy\"><\/span>Execute the Trading Strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Next, we can start carrying out our trading strategy. Based on the set above, we execute the buy-and-hold of the High Dividend ETF. Set the trading period from <strong>start_date (2018-01-01) to end_date (2023-12-31)<\/strong> and use the data we collected earlier. The initial capital for the trading strategy is $1,000,000. The output results are a detailed list of daily performance and transactions.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full caption-align-center\"><img decoding=\"async\" width=\"2610\" height=\"1480\" src=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/result-1.png\" alt=\"High Dividend ETF\" class=\"wp-image-23614\" srcset=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/result-1.png 2610w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/result-1-300x170.png 300w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/result-1-1024x581.png 1024w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/result-1-150x85.png 150w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/result-1-768x435.png 768w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/result-1-1536x871.png 1536w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/result-1-2048x1161.png 2048w\" sizes=\"(max-width: 2610px) 100vw, 2610px\" \/><figcaption class=\"wp-element-caption\">Trading Details<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Review_Dividend_Information_During_the_Backtesting_Period\"><\/span>Review Dividend Information During the Backtesting Period<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>log.txt records the information for each dividend received : <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Equity\uff1a ETF Ticker Symbol<\/li>\n\n\n\n<li>cash_dividend amount\uff1a Cash Dividend Per Share<\/li>\n\n\n\n<li>pay_date\uff1a Payment Day<\/li>\n\n\n\n<li>div_owed\uff1aDividend Received (Cash Dividend Per Share * Number of Shares Held)<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full caption-align-center\"><img loading=\"lazy\" decoding=\"async\" width=\"1788\" height=\"274\" src=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/CleanShot-2024-06-03-at-15.41.25@2x.png\" alt=\"High Dividend ETF\" class=\"wp-image-23748\" srcset=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/CleanShot-2024-06-03-at-15.41.25@2x.png 1788w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/CleanShot-2024-06-03-at-15.41.25@2x-300x46.png 300w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/CleanShot-2024-06-03-at-15.41.25@2x-1024x157.png 1024w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/CleanShot-2024-06-03-at-15.41.25@2x-150x23.png 150w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/CleanShot-2024-06-03-at-15.41.25@2x-768x118.png 768w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/CleanShot-2024-06-03-at-15.41.25@2x-1536x235.png 1536w\" sizes=\"(max-width: 1788px) 100vw, 1788px\" \/><figcaption class=\"wp-element-caption\">Dividend Distribution Situation of High Dividend ETF<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Performance_Evaluation\"><\/span>Performance Evaluation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To further understand the performance of this strategy, we compared the cumulative returns of this strategy with the cumulative return of the benchmark index and visualized the results as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full caption-align-center\"><img loading=\"lazy\" decoding=\"async\" width=\"2636\" height=\"1346\" src=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-May-28-CleanShot-2.jpg\" alt=\"\u9ad8\u80a1\u606f ETF\" class=\"wp-image-23655\" srcset=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-May-28-CleanShot-2.jpg 2636w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-May-28-CleanShot-2-300x153.jpg 300w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-May-28-CleanShot-2-1024x523.jpg 1024w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-May-28-CleanShot-2-150x77.jpg 150w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-May-28-CleanShot-2-768x392.jpg 768w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-May-28-CleanShot-2-1536x784.jpg 1536w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-May-28-CleanShot-2-2048x1046.jpg 2048w\" sizes=\"(max-width: 2636px) 100vw, 2636px\" \/><figcaption class=\"wp-element-caption\">Backtesting Performance Compared to Benchmark<\/figcaption><\/figure>\n\n\n\n<p>The chart shows that the overall market has delivered a return of 2 times over the past five years. However, the return from buying and holding high-dividend ETFs slightly lags but still accumulates nearly a 2-fold return. Additionally, we notice that the volatility of the high-dividend ETF portfolio closely mirrors that of the overall market but with relatively more minor fluctuations. This suggests lower investment risk, as evidenced by the annualized volatility of 9.114% and the maximum drawdown of -16.382%. Furthermore, the Beta value of 0.43 indicates that the portfolio is less sensitive to changes in the overall market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Comparing_the_dividend_performance_of_High_Dividend_ETF_and_Market_Capitalization_ETF\"><\/span>Comparing the dividend performance of High Dividend ETF and Market Capitalization ETF<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full caption-align-center\"><img loading=\"lazy\" decoding=\"async\" width=\"1788\" height=\"536\" src=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-Jun-3-Screenshot-1.jpg\" alt=\"High Dividend ETF\" class=\"wp-image-23752\" srcset=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-Jun-3-Screenshot-1.jpg 1788w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-Jun-3-Screenshot-1-300x90.jpg 300w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-Jun-3-Screenshot-1-1024x307.jpg 1024w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-Jun-3-Screenshot-1-150x45.jpg 150w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-Jun-3-Screenshot-1-768x230.jpg 768w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u7dda\u4e0a\u7167\u7247\u5408\u4f75-Jun-3-Screenshot-1-1536x460.jpg 1536w\" sizes=\"(max-width: 1788px) 100vw, 1788px\" \/><figcaption class=\"wp-element-caption\">Comparison between High Dividend ETF and Market Capitalization ETF<\/figcaption><\/figure>\n\n\n\n<p>The chart shows that High Dividend ETFs yield more dividends under the same conditions during the backtesting period than Market Capitalization ETFs. It&#8217;s worth noting that four Market Capitalization ETFs are held for over 1000 days, while High Dividend ETFs have only three. Despite this, High Dividend ETFs still outperform Market Capitalization ETFs in dividends, indicating that High Dividend ETFs indeed deliver on their touted characteristic. For investors, High Dividend ETFs can provide more generous dividend returns during the holding period. This not only enhances the cash flow of the investment portfolio but also provides a certain level of stability during market volatility. This reflects that High Dividend ETFs typically include companies with robust financials that can regularly pay dividends. These companies often have strong profitability and cash flow, enabling High Dividend ETFs to maintain relatively stable performance during market downturns. This makes them suitable investment targets for long-term investors or those who prefer passive investing without closely monitoring the market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In this exercise, we selected five High Dividend ETFs as investment targets and conducted a backtesting performance analysis using TQuant Lab. The backtesting results for these five High Dividend ETFs show favorable cumulative and annualized returns, reaching 94.373% and 12.129%, respectively. The annualized volatility and maximum drawdown are 9.114% and -16.382%, respectively, indicating that High Dividend ETFs have achieved steady returns while controlling risk. The Beta value suggests that they have exhibited relatively stable performance compared to the overall market and are less affected by market fluctuations.<\/p>\n\n\n\n<p>However, the Sharpe Ratio and Alpha indicate that ESG ETFs have not generated excess returns. On the other hand, High Dividend ETFs offer a significant advantage in providing stable cash flow and higher dividend yields, especially under similar holding conditions. This reassures investors that they can rely on a consistent income stream, reflecting the fact that companies paying high dividends are often mature and may lack significant growth potential in the long term.<\/p>\n\n\n\n<p>Overall, High Dividend ETFs are suitable for more conservative investors unwilling to take on high risks and not seeking short-term high profits. They might be a good choice if you aim to steadily receive dividends over the long term and accumulate passive income gradually.<\/p>\n\n\n\n<p><strong>Please note that the strategy and target discussed in this article are for reference only and do not constitute any recommendation for specific commodities or investments<\/strong>. In the future, we will also introduce using the TEJ database to construct various indicators and backtest their performance. Therefore, we welcome readers interested in various trading strategies to consider purchasing relevant solutions from&nbsp;TQuant Lab. You can construct a trading strategy that suits your needs with our high-quality databases.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-100 has-custom-font-size\" style=\"font-size:22px\"><a class=\"wp-block-button__link has-background wp-element-button\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/databank-solution\/market-data\/\" style=\"border-radius:16px;background:linear-gradient(135deg,rgb(160,209,216) 0%,rgb(51,145,181) 50%,rgb(50,95,191) 100%)\"><strong>Access to Comprehensive Retail Investors Data<\/strong><br><strong>Start Building Portfolios That Outperforms the Market Today!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p class=\"has-text-align-center\" style=\"font-size:32px\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><strong><em>&#8220;Taiwan stock market data, TEJ collect it all.&#8221;<\/em><\/strong><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Extended_Reading\"><\/span>Extended Reading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/tquant-lab-esg-etf-eng\/\" class=\"ek-link\">Should ESG ETF Be a Buy? Backtest Performance of ESG ETF<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/measuring-stock\/\" class=\"ek-link\">Is TQuant Lab Measuring Stock a Buy? Backtest performance of measuring stocks<\/a><\/li>\n<\/ul>\n\n\n\n<p>The characteristics of the Taiwan stock market differ from those of other European and American markets, and <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\"><span style=\"text-decoration: underline;\" class=\"ek-underline\">the dynamics of retail investors are worth noting<\/span><\/mark>. Especially in the first quarter of 2024, with the <strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#c05d5d\" class=\"has-inline-color\">Taiwan Stock Exchange reaching a new high of 20,000 points<\/mark><\/strong> due to the rise in TSMC&#8217;s stock price, global institutional investors are paying more attention to the performance of the Taiwan stock market.&nbsp;<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#0978b8\" class=\"has-inline-color\">Taiwan Economical Journal (TEJ)<\/mark><\/strong>, a financial database established in Taiwan for over 30 years, serves local financial institutions and academic institutions, and has long-term cooperation with internationally renowned data providers, providing high-quality financial data for five financial markets in Asia.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><mark style=\"background-color:#ebc766\" class=\"has-inline-color has-black-color\">Complete Coverage<\/mark><\/strong>: Includes all listed companies on stock markets in Taiwan, China, Hong Kong, Japan, Korea, etc.&nbsp;<\/li>\n\n\n\n<li><strong><mark style=\"background-color:#ebc766\" class=\"has-inline-color\">Comprehensive Analysis of Enterprises<\/mark><\/strong>: Operational aspects, financial aspects, securities market performance, ESG sustainability, etc.&nbsp;<\/li>\n\n\n\n<li><strong><mark style=\"background-color:#ebc766\" class=\"has-inline-color\">High-Quality Database<\/mark><\/strong>: TEJ data is cleaned, checked, enhanced, and integrated to ensure it meets the information needs of financial and market analysis.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>With TEJ&#8217;s assistance, you can access relevant information about major stock markets in Asia, such as securities market, financials data, enterprise operations, board of directors, sustainability data, etc., providing investors with timely and high-quality content. Additionally, TEJ offers advisory services to help solve problems in theoretical practice and financial management!<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-100 has-custom-font-size\" style=\"font-size:21px\"><a class=\"wp-block-button__link has-background has-text-align-center wp-element-button\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/contact\/\" style=\"border-radius:16px;background:linear-gradient(135deg,rgb(160,209,216) 0%,rgb(51,145,181) 50%,rgb(50,95,191) 100%)\"><strong>Want to Learn More About Our Databases?<br>Contact Us and Get the Free Trial!<\/strong><\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As the name suggests, high dividends refer to companies distributing higher profits to investors in the form of cash dividends. There is no specific definition of how much dividend constitutes a high dividend. This article will utilize TQuant Lab to conduct a backtesting performance analysis of buying and holding High Dividend ETF.<\/p>\n","protected":false},"featured_media":23586,"template":"","tags":[3063,3200,2988],"insight-category":[690,50,1356],"class_list":["post-23744","insight","type-insight","status-publish","has-post-thumbnail","hentry","tag-backtesting-2","tag-etf-2","tag-quantitative-analysis","insight-category-data-analysis","insight-category-fintech","insight-category-tquant-lab-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/insight\/23744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":8,"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/insight\/23744\/revisions"}],"predecessor-version":[{"id":23770,"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/insight\/23744\/revisions\/23770"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/media\/23586"}],"wp:attachment":[{"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/media?parent=23744"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/tags?post=23744"},{"taxonomy":"insight-category","embeddable":true,"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/insight-category?post=23744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}