The Taiwan Monthly

Market & ETP Overview

Active ETFs and Passive Multi-Asset ETFs

Our ETF market has grown tremendously throughout the years. As of the end of July 2024, there were 163 ETFs listed in the TWSE ETF market, with the market size reaching USD 86.29 billion.

 

In order to make Taiwan the center of Asia Asset Management, the FSC announced the introduction of active ETFs and passive multi-asset ETFs. Please find below the key points of these two types of ETFs.

 

1.   Active ETFs

 

The portfolios of active ETFs are constructed and adjusted by fund managers based on investment objectives and strategies. Taking into account that this is the first introduction of active ETFs in Taiwan, the initial phase will focus on active equity ETFs and active bond ETFs. These portfolios will not only be fully transparent (the actual ETF portfolio will be disclosed to the market on a daily basis), but also are allowed with discretionary benchmarking.

 

2.   Passive Multi-Asset ETFs

 

Fixed equity and bond ratio balanced ETFs will be introduced at the initial phase, while other types of multi-asset ETFs will be opened step by step depending on the development of the actual multi-asset ETF market.

 

According to the FSC, the necessary regulatory adjustments in line with the aforementioned opening scope will be completed by the end of December 2024. In the meanwhile, the TWSE, TPEX, and SITCA will revise related rules and systems concerning the product issuance, information disclosure, creation and redemption processes, plus liquidity provider rules, etc. The very first active ETF and passive balanced ETF are expected to be launched as soon as next year.

 

For further information, please contact Miss Hsu at 1358@twse.com.tw.