Taiwan's Exchange-Traded Fund (ETF) market surpasses NT$6.5 trillion in value
The Taiwan ETF market continues to grow, with more than 270 exchange-traded funds (ETFs) now available. This expansion has been driven by the increasing acceptance and participation of local investors, as indicated by the 15.44 million beneficiaries.
The market, which is the third-largest in Asia, has grown rapidly over the past two decades and has seen significant growth in the past year, expanding by 65 percent compared to the previous year. This growth is evident in the aggregate assets of ETFs listed in Taiwan, which surpassed NT$6.5 trillion (US$216.96 billion) as of the end of June.
An ETF operates like a mutual fund and serves as a type of pooled investment security. They typically track an index, sector, commodity, or other asset, making them an accessible and versatile investment option for investors. ETFs can be bought or sold on a stock exchange, providing liquidity and flexibility.
Popular ETF products in Taiwan focus on high dividends, artificial intelligence technology, semiconductors, environmental, social and governance sustainability, and electric vehicles. One of the most widely recognized popular ETFs tracking Taiwanese equities is the iShares MSCI Taiwan ETF (EWT), which offers exposure to medium and large-cap listed companies in Taiwan.
Innovation in the Taiwan ETF market is also on the rise. By 2025, Taiwan's first multi-asset ETF (KGI US Top Balanced ETF) is set to launch, offering diversified exposure beyond equities. Leveraged exchange-traded products (ETPs), such as 3x leveraged long and short Taiwan equity products, have also emerged, providing investors with tools for directional bets or hedging in the Taiwan market.
To help the public become familiar with ETF products that suit their needs and the trend of market innovation, the Taiwan Stock Exchange (TWSE) is promoting the 2023 ETF Investment Expo. The event, taking place at the Kaohsiung Exhibition Center from Oct. 17 to 19, will feature five special exhibition areas, special lectures, interactive experiences, and investment education.
The 2023 ETF Investment Expo is a testament to the growing popularity and importance of ETFs in Taiwan's investment landscape. As the market continues to expand and innovate, investors have more opportunities than ever to diversify their portfolios and participate in the growth of the Taiwanese economy.
Source: 1, 2, 3, 4, 5
Note: The chairman of the Taiwan Stock Exchange (TWSE) is Sherman Lin (林修銘). The exact dates for the 2023 ETF Investment Expo are October 17 to 19.
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