Index-tracking strategies touted for more profits

Focus Taiwan
Date: 2017/01/24
By: Tien Yu-pin and Frances Huang

Taipei, Jan. 24 (CNA) Taiwan Index Plus Corp. (TIP 台灣指數公司), a wholly owned subsidiary of the Taiwan Stock Exchange, is encouraging investors to adopt index-tracking strategies in a bid to diversify their investment portfolios and eventually increase their profits.

In a recent seminar focusing on how to invest in Taiwan equities, Lee Chi-hsien (李啟賢), chairman of the TIP, told the participants that index-tracking measures include investment in exchange-traded funds (ETFs) and private equity funds to follow certain indexes.

Lee said that buying ETFs or private equity funds emphasizes that long-term investments and returns have outperformed other investment instruments.

Citing data provided by the TWSE, which operates the local main board, Lee said that investments in ETFs and private equity funds had posted returns of more than 35 percent as of the end of 2016.    [FULL  STORY]