Taiwan Depository & Clearing Corporation

As Father's Day approaches on August 8th, to express gratitude to fathers who have dedicated themselves to their families, children may consider combining financial planning with their gifts. Instead of traditional presents, purchasing stocks for fathers not only conveys respect but also offers the potential for future investment gains.

Fathers are typically over 50 years old when their children are adults with financial capability to choose this option. According to the latest data from TDCC, among male investors above 50 years of age in the Taiwan stock market, the top 5 stock holdings in the first half of this year were: China Steel, UMC, China Development Financial, Hon Hai, and TSMC. Analysis of the top 10 stock holdings reveals that fathers generally favor sectors like steel, semiconductor giants, shipping, and finance. Children with financial capacity can engage in a conversation with their fathers to select the most suitable investment targets.

For young professionals who might find it challenging to purchase whole stocks, fractional shares trading can be an option. TDCC's data shows that among male investors above 50 years of age, the top 10 newly added fractional share trading persons in the first half of 2023 were: TSMC, Evergreen, MediaTek, InnoLux, Hon Hai, Cathay Financial, Yuanta P-shares Taiwan Top 50 ETF (0050), E.SUN Financial, Yuanta Taiwan Dividend Plus ETF (0056), and Taiwan Cement. Such high-value stocks, leading stocks, financial holdings stocks, and well-established ETFs are favorable for Dads’ long-term investment strategies.

Looking at the first half of this year, male investors above 50 years old have shown interest in certain stocks compared to the second half of 2022. The top 10 stocks with increased fractional share trades in the first half of 2023, when compared to the latter half of 2022, include: Wistron, Taya Group, MediaTek, Cathay Financial, Cheng Loong, Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF (00878), TRK Corporation, Quanta, Yuanta Taiwan High Dividend Low Volatility ETF (00713), and Cheng Mei Materials. These stocks can also serve as references for young professionals who intend to buy stocks as gifts for their fathers. Considering the long term investment, dollar-cost averaging (DCA) investments for fathers can be beneficial. In terms of the top choices for dollar-cost averaging investments, the first three in the first half of 2023 were Yuanta Taiwan Dividend Plus ETF (0056), Yuanta P-shares Taiwan Top 50 ETF (0050), and Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF (00878). Comparing to the latter half of 2022, the top three choices for dollar-cost averaging investments in Taiwan stocks were Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF (00878), Yuanta Taiwan High Dividend Low Volatility ETF (00713), and Yuanta Taiwan Dividend Plus ETF (0056). This reflects the preference of fathers, who are stock investors, for low-priced ETFs with high dividend yields.

In the first half of this year, the top 10 choices for fathers engaging in dollar-cost averaging investments included Fubon FTSE TWSE Taiwan 50 ETF (006208), Yuanta Taiwan High Dividend Low Volatility ETF (00713), TSMC, Fubon TWSE Corporate Governance 100 ETF (00692), E.SUN Financial, Mega Financial, Cathay Taiwan 5G Plus ETF (00881). These are the most favored individual stocks, with 7 of them being ETFs, making them excellent choices for fathers' long-term investments.

Fathers, who often prioritize their family's well-being, tend to overlook their own financial planning and retirement needs. As children celebrate Father's Day, they can turn their careful investment strategies into a way of caring for their fathers. It's important to remind dear investors that regardless of adopting a long-term dollar-cost averaging investment strategy or discussing preferred investment choices with their fathers, a cautious attitude is crucial. Regularly evaluating the performance of the investments and avoiding chasing after high prices will ensure that fathers can enjoy retirement life and leisure activities with peace of mind.