The national ETF 0050 may split into four or show premium arbitrage opportunities? Financial influencer: Large Investors will use the subscription mechanism for arbitrage.
Yuanta Taiwan 50 ( code 0050) recently completed a one-for-four stock split after suspending trading from June 11 to 17. The last close was 188.65, today it opened at 47.25 and closed at 47.57. Some people think that the stock split makes the 0050 price more "close to the people", but it has little impact in today's prevalence of fractional shares. It is worth noting that stock pledge loans are mostly in whole pieces, and stock splits also reduce the threshold for pledge 0050 loans.
What will happen to Yuanta Taiwan 50 after the split? The number of shares will quadruple, and the price per share will become one-fourth.
Yuanta Taiwan 50, officially known as Yuanta Polaris Taiwan Excellence 50 Securities Investment Trust Fund, code 0050. Established in 2003, it is primarily based on the Taiwan stock market index and is regarded as Taiwan's national ETF. 0050 comprises the top fifty stocks by market capitalization in Taiwan, while also considering factors like stock liquidity. Generally, holding 0050 is seen as betting on Taiwan's economic development, with over 770,000 people currently holding 0050, making it a popular choice for many in terms of stock accumulation and regular investment plans.
In Taiwan, 0050 is often the focus of debates among stock investors. For example, financial internet celebrity Chen Chongming and National Chengchi University professor Zhou Guannan have clashed over the topic "Buying 0050 is not as good as buying TSMC". The former believes that TSMC accounts for a high proportion of the constituents in 0050 and performs excellently, so it is better to hold TSMC directly. However, there are also arguments claiming that this is purely hindsight reasoning, as HTC was once the stock king in Taiwan, and by this logic, holding HTC until now would also be equivalent to a waste of time. The mechanism of Yuanta 50 to eliminate the weak and retain the strong is more suitable for dividend stock investors.
Stock Split: Position value remains unchanged, stake threshold drop.
Yuanta 50 will suspend trading from June 11 to June 17 after the stock split is confirmed. A one-for-four stock split means the number of shares will quadruple, but the price per share will be one-fourth.
For example, Bob held a (1000 share ) 0050 before the split and closed at 188.65. After the split, Bob's position will become 4 (4000 shares ) 0050 at a price of 47.25 per share, and the value of the position will remain unchanged. Generally speaking, it is believed that stock splits reduce the price per share, which lowers the entry threshold and increases liquidity. In addition, after the asset scale exceeded 650 billion yuan, 0050's manager fee has been reduced to about 0.103%, making 0050 now more characterized by low manager fees and lower price per share.
Stock splits do not change the value of the position, the essence of the underlying. However, most of the pledged stock borrowings in the market are in whole pieces. In the case of Cathay Shihua, it is not possible to allocate fractional shares as collateral. Therefore, 0050 is equivalent to reducing the pledge loan threshold of the stock holder by 75%, from a single 188,000 yuan to 47,250, increasing the flexibility of operation.
0050 split or premium? Can arbitrage through subscription method.
Some people think that stock splits lower the entry threshold, which will increase gas buying and form a premium. Financial fan "Mr. Sandwich's Financial Notes" said on Facebook that if the premium is huge, you can also arbitrage by subscription. After buying the constituent stocks in the market, they are exchanged for the equivalent 0050, and the 0050 exchanged for the original price can be quickly sold in the market at a premium, arbitrage through subscription, and reduce the parity difference, so it will not actually have an impact. However, he also pointed out that the amount required for the subscription is relatively high, and it is difficult for the average person to profit from it.
This article discusses whether the National ETF 0050 will split four ways or create arbitrage opportunities due to premium? Financial influencer: Large investors will use the subscription mechanism for arbitrage, first appearing in the Chain News ABMedia.
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The national ETF 0050 may split into four or show premium arbitrage opportunities? Financial influencer: Large Investors will use the subscription mechanism for arbitrage.
Yuanta Taiwan 50 ( code 0050) recently completed a one-for-four stock split after suspending trading from June 11 to 17. The last close was 188.65, today it opened at 47.25 and closed at 47.57. Some people think that the stock split makes the 0050 price more "close to the people", but it has little impact in today's prevalence of fractional shares. It is worth noting that stock pledge loans are mostly in whole pieces, and stock splits also reduce the threshold for pledge 0050 loans.
What will happen to Yuanta Taiwan 50 after the split? The number of shares will quadruple, and the price per share will become one-fourth.
Yuanta Taiwan 50, officially known as Yuanta Polaris Taiwan Excellence 50 Securities Investment Trust Fund, code 0050. Established in 2003, it is primarily based on the Taiwan stock market index and is regarded as Taiwan's national ETF. 0050 comprises the top fifty stocks by market capitalization in Taiwan, while also considering factors like stock liquidity. Generally, holding 0050 is seen as betting on Taiwan's economic development, with over 770,000 people currently holding 0050, making it a popular choice for many in terms of stock accumulation and regular investment plans.
In Taiwan, 0050 is often the focus of debates among stock investors. For example, financial internet celebrity Chen Chongming and National Chengchi University professor Zhou Guannan have clashed over the topic "Buying 0050 is not as good as buying TSMC". The former believes that TSMC accounts for a high proportion of the constituents in 0050 and performs excellently, so it is better to hold TSMC directly. However, there are also arguments claiming that this is purely hindsight reasoning, as HTC was once the stock king in Taiwan, and by this logic, holding HTC until now would also be equivalent to a waste of time. The mechanism of Yuanta 50 to eliminate the weak and retain the strong is more suitable for dividend stock investors.
Stock Split: Position value remains unchanged, stake threshold drop.
Yuanta 50 will suspend trading from June 11 to June 17 after the stock split is confirmed. A one-for-four stock split means the number of shares will quadruple, but the price per share will be one-fourth.
For example, Bob held a (1000 share ) 0050 before the split and closed at 188.65. After the split, Bob's position will become 4 (4000 shares ) 0050 at a price of 47.25 per share, and the value of the position will remain unchanged. Generally speaking, it is believed that stock splits reduce the price per share, which lowers the entry threshold and increases liquidity. In addition, after the asset scale exceeded 650 billion yuan, 0050's manager fee has been reduced to about 0.103%, making 0050 now more characterized by low manager fees and lower price per share.
Stock splits do not change the value of the position, the essence of the underlying. However, most of the pledged stock borrowings in the market are in whole pieces. In the case of Cathay Shihua, it is not possible to allocate fractional shares as collateral. Therefore, 0050 is equivalent to reducing the pledge loan threshold of the stock holder by 75%, from a single 188,000 yuan to 47,250, increasing the flexibility of operation.
0050 split or premium? Can arbitrage through subscription method.
Some people think that stock splits lower the entry threshold, which will increase gas buying and form a premium. Financial fan "Mr. Sandwich's Financial Notes" said on Facebook that if the premium is huge, you can also arbitrage by subscription. After buying the constituent stocks in the market, they are exchanged for the equivalent 0050, and the 0050 exchanged for the original price can be quickly sold in the market at a premium, arbitrage through subscription, and reduce the parity difference, so it will not actually have an impact. However, he also pointed out that the amount required for the subscription is relatively high, and it is difficult for the average person to profit from it.
This article discusses whether the National ETF 0050 will split four ways or create arbitrage opportunities due to premium? Financial influencer: Large investors will use the subscription mechanism for arbitrage, first appearing in the Chain News ABMedia.