What Is the 0050 Split? Breaking Down the Popularization Strategy of Taiwan’s “National ETF”

In June 2025, Taiwan’s largest index exchange-traded fund (ETF) - Yuanta Taiwan 50 (0050) completed a significant operation: a stock split. Specifically, 0050 implemented a 1-for-4 split ratio, reducing the price per unit from approximately 188.65 TWD before the split to around 47.25 TWD, lowering the investment threshold for a single ETF from nearly 200,000 TWD to about 50,000 TWD.

0050 The Principle and Process of Segmentation

The segmentation process of 0050 strictly follows the timetable: June 10 is the last trading day, from June 11 to 17 trading will be suspended for segmentation operations, and trading will resume on June 18 at the new stock price.

The essence of splitting is an increase in quantity and a proportional decrease in unit value:

• If an investor originally holds 1 share (1000 shares) of 0050, it will become 4 shares (4000 shares) after the split.
• The net value per share drops to one-fourth of the original price (e.g., 188.65 yuan → 47.16 yuan).
• The total asset value remains unchanged, and it does not affect the intrinsic composition of the fund or the weight of component stocks.

This process is similar to token splits in the cryptocurrency field (such as those previously conducted by STX, ADA, etc.), aimed at attracting retail participation by lowering the unit price.

Why does 0050 need to be split? Three core purposes

1. Lowering investment threshold: Since its issuance price of 36.98 yuan in 2003, 0050 has risen to over 200 yuan, making the high price a barrier for small investors. After the split, each share costs about 47,000 yuan, significantly improving accessibility, especially benefiting regular investment contributors.
2. Enhancing liquidity and market activity: A lower price promotes small transactions and increases the base of market participants. Historical data shows that ETF splits are often accompanied by an increase in trading volume and improved liquidity.
3. Optimize the flexibility of pledge financing: Traditional financial stock pledge loans usually require a “whole” collateral. After segmentation, the value of a single pledge drops from 188,000 to 47,000, allowing investors to utilize asset leverage more flexibly, similar to the logic of “fragmented collateral” in DeFi.

Market Reaction and Technical Challenges After the Split

Although the split did not change the asset value, there was still significant volatility on the first day of trading after recovery: opened at 47.25 yuan, closed at 47.57 yuan, reflecting positive market sentiment.

However, the issues with technical integration have caused dissatisfaction among investors:

• Many brokerage systems failed to instantly adjust cost data, resulting in the APP displaying “cost reduced to zero,” distorting the reported return rate (e.g., showing +100%)
• The K-line chart did not revert to the pre-split prices, affecting the effectiveness of technical analysis.
  This problem exposes the data integration flaws of the traditional financial system, while blockchain technology can provide a more transparent and immutable record, avoiding human errors.

Web3 Perspective: Strategic Convergence of Traditional Finance and the Crypto Market

The fragmentation of 0050, although it belongs to traditional financial operations, is closely related to Web3 High degree of spiritual resonance:

• Financial Inclusion: By lowering the barriers, more groups can participate in high-quality asset investments, echoing the core proposition of cryptocurrency’s “decentralized access.”
• The real mapping of token economics: DeFi projects like Jupiter adjust supply and demand through token buyback and burn (50% of revenue used to buy back $JUP), while 0050 maintains price rationality through play people for suckers. Both aim to optimize asset liquidity and attractiveness.
• Staking scene expansion: A more flexible staking model after segmentation, approaching the experience of “partial collateral liquidation” in DeFi, showing that traditional finance is absorbing the flexibility of on-chain applications.

Insights for Investors and the Industry

The splitting of 0050 is not just an operational adjustment, but marks a new stage in the competition of the ETF market:

• For small investors: After the split, 0050 competes with low-priced ETFs (such as 00905), requiring a comprehensive assessment of expense ratios (0050 has dropped to 0.103%) and long-term returns.
• For Web3 developers: Traditional finance is actively optimizing user experience, and crypto products need to address pain points such as “complex wallet processes” to enhance usability and attract mainstream users.
• For regulatory agencies: The data synchronization issues arising from the split highlight the necessity of introducing blockchain technology to optimize the clearing system.

Conclusion

The 1 for 4 split of 0050 is essentially a key step in the democratization of traditional finance. By lowering the unit price, it expands the base of participants, aligning with the vision of Web3 to break down financial barriers. In the future, as more ETFs may follow suit in splitting, along with the optimization of traditional systems by blockchain technology, the inclusivity and efficiency of the investment market are expected to continue improving—this means a fairer competitive playing field for both retail investors holding Taiwan stock ETFs and Web3 developers building Jupiverse.