New exchange traded fund debuts on bourse

The China Post
Date: January 1, 2017

TAIPEI — The first Exchange Traded Fund (ETF) tracking futures market volatility started listing on the local main board on Friday, according to the Taiwan Stock Exchange (TWSE).

The ETF — the Fubon S&P 500 VIX Short-Term Futures ETF — issued by Fubon Asset Management Co. (富邦投信), uses the S&P 500 VIX Short-Term Futures Index Excess Return as its underlying index.

The S&P 500 VIX Short-Term Futures Index ER is compiled and maintained by S&P Dow Jones Indices. The TWSE said that the new ETF is expected to provide investors with a new option at a time of increased volatility in global financial markets in a bid to hedge risks.

The new ETF will closely track the performance of the S&P 500 VIX Short-Term Futures Index ER. The VIX index refers to the CBOE Volatility Index, widely considered the best gauge of uncertainty in the market. Liao Chung-wen (廖崇文), a director at Fubon Asset Management’s investment division, said that global financial markets have been moved by a series of global events, such as the referendum in the United Kingdom on whether to exit the European Union in June and the presidential election in the United States in November.    [FULL  STORY]

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