The Taiwan Monthly

Jun. 2020


The Taiwan Stock Exchange gives online ETF investment speech at the invitation of SinoPac Securities

The Taiwan Stock Exchange (the “TWSE”) was invited to participate in a series of expert speech held by SinoPac Securities and gave an online ETF investment speech on May 28 via video conference to talk about “Using Diversified ETFs to Grasp the Market Trend.” The TWSE also directly communicated with investors to exchange views on the future development and recent status of the ETF market.


Due to the impact of COVID-19, Taiwan’s market capitalization has dropped NT$3 trillion from the beginning of the year to the end of April. The average daily turnover of the market grew by 37% compared with that of last year. However, the asset size of the ETF market rose 10% and the average daily turnover was more than 80% higher. ETFs stood out in the stock market volatility and its position became even more important among the many investment and financing tools.


Ya-Mei Chang, Vice President of the Taiwan Stock Exchange, said in her opening remarks that under the impact of the pandemic, all kinds of assets such as stocks, bonds, gold, REITs, currencies and commodities were discarded in the global market, but ETFs had a net inflow. This shows that investors regard ETFs as a safe haven in a time of market uncertainty.


After more than a decade of development, there are 119 ETFs listed on the Taiwan Stock Exchange. In addition to Taiwan stocks, the underlying indices also cover overseas stocks, overseas bonds, commodities, currencies and a volatility index. Part of the underlying indices also has related leveraged/inverse ETFs on the market, which enable investors to carry out strategic trading. Among ETFs which track stocks, more and more thematic ETFs are favored by investors, such as ETFs with low volatility and high dividend, ESG sustainable ETFs, ETFs with innovative technology themes (such as AI, robot and 5G), and more. Investors can freely combine them to enrich their portfolios.


In this SinoPac Securities series,  this ETF speech is the only one hosted by the TWSE, whose  representative had a fruitful discussion with the participating investors, who raised questions through the online system to interact with the lecturer. The Taiwan Stock Exchange’s goal is to build a smooth communication channel with investors through this online ETF speech, and to work together for the steady development of Taiwan's ETF market. This event video will be uploaded to  the Webpro 3.0 website. The speech is conducted in mandarin.


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