By: Tien Yu-pin and Frances Huang
Taipei, June 9 (CNA) The Taiwan Stock Exchange (TWSE) has sought approval from financial regulators to remove a transaction tax on exchange traded funds (ETFs) which track bond movements in a bid to provide senior citizens with investment instruments that offer a stable return.
The TWSE, which operates the local main board, said that the removal of the transaction tax echoed a policy by the Financial Supervisory Commission to push for a wider range of financial products for the elderly.
The exchange said that bond ETFs are very suitable for the elderly to park their funds as the financial products carry a relatively low price tag, making them more affordable to retirees.
The affordability of bond ETFs have made the products very popular in foreign markets, the exchange added. [FOCUS TAIWAN]