Taiwan News
Date: 2016-07-05
By: Sophia Yang, Taiwan News, Staff Writer
Taiwan’s exchange-traded fund (ETF) market has built up scale with so many new ETFs coming to the market, such as the ETFs that track foreign stock markets in Hong Kong, China, Japan, India, and the United States.
The Taiwan Stock Exchange Corp. (TWSE), however, has a more ambitious plan to gather momentum by introducing more new types of ETF products for Taiwanese investors.
According to the TWSE, as of Tuesday, there are 49 ETFs available to trade with total assets amounting to NT$247.8 billion, up 20.59 percent from NT$205.5 billion by the end of 2015. The average daily turnover of ETFs was NT$8.22 billion in the first five months of 2016, demonstrating an explosive growth that increased by 27.16 percent compared to the same period last year. The transaction volumes accounted for 9.94 percent of daily turnover on the Taiwan Stock Exchange from last year’s 7.26 percent.
According to the TWSE, turnover ratios of three ETFs as of this April have reached 529.17 percent, 1,036.5 percent, 753.18 percent respectively. Apart from the ETF tracking the Japanese market, the TWSE has launched ETFs tracking the stock markets in the United States and India this year and the one following European market is scheduled to be made available later this year. [FULL STORY]