The Taiwan Monthly

Market & ETP Overview

Launched on the TWSE’s website, the “ESG-related Index Product” section is a one-stop site for accessing investment information with a focus on sustainability and investing for a better future

On March 31, 2023, the “ESG-related Index Product” section was launched on the official website of the Taiwan Stock Exchange (the TWSE), allowing investors to easily search for ESG-related ETFs (Exchange Traded Funds) and ETNs (Exchange Traded Notes) which are currently listed and traded on the TWSE, and stay up-to-date on the most recent ESG market investment trends. The vision of sustainable development can then be realized through the convergence of green investment energy.

In recent years, investors have shown a strong preference for index investing. It has been nearly 20 years since the first ETF was listed on the TWSE in 2003. During this time period, there has been an expansion in asset under management, number of investors, and total transaction value. The TWSE has introduced a wider range of ETFs and ETNs to meet investor demand for diversified index investments. The TWSE has been at the forefront of developing and applying ESG-related indices on the domestic market to promote ESG investment ever since it released the “TWSE RA Taiwan Employment Creation 99 Index” in 2010, while gradually broadening products and services to support sustainable development. The TWSE has kept abreast of the sustainable trends by pooling the efforts of all market participants to develop an all-encompassing ESG ecosystem in the capital market. This is done to encourage the creation of more ESG indices that accurately reflect sustainable value in financial investments.

There are two themed index products disclosed in the TWSE’s ESG-related Index Products Section: ETFs and ETNs. For the ETF portion, ETFs are subdivided into two categories: ESG ETFs compliant with the criteria for review of ESG funds published by the Financial Supervisory Commission; and ETFs whose underlying indices take environmental, social, or governance factors into account or are related to investment themes of green energy and sustainability, despite not falling under the aforementioned ESG ETFs category. For the ETN portion, the underlying indices take environmental, social, or governance factors into account or are related to investment themes of green energy and sustainability. In this section, users can view not only the basic information of various types of ESG products listed and traded on the TWSE, but also descriptions of ESGs considered by the underlying indices. By clicking on individual ETF/ETN, more detailed information and intra-day trading information can be obtained, which can be linked to the issuer website and the index company website. Investors can utilize this area to obtain the necessary information for ESG investments and make more informed investment decisions.

Taiwan Index Plus Corporation (the TIP), a wholly owned subsidiary of the TWSE, has also launched the “The Sustainability Themed Indices from Taiwan Stock Exchange & Taiwan Index Plus” in conjunction with the promotion of diverse ESG products in order to provide investors with a one-stop site for accessing Taiwan’s ESG-compliant underlying indices and ESG themed indices. The user can have comprehensive access to the existing TWSE and TIP’s ESG themed indices, content of ESG indicators used for indices, introduction to ESG evaluation, and performance of indices in different time periods (such as return on investment [ROI], standard deviation, and Sharpe ratio), basic analysis of constituent stocks (such as market category, number of constituent stocks, and industry weights), etc., resulting in rich and complete content. In addition, by clicking the name of a particular index, the user can access the index’s exclusive webpage to gain further insight into the information contained therein.

Feel free to access the “ESG-related Index Product” section  (https://www.twse.com.tw/rwd/en/esg-index-product/etf or accessible via the TWSE homepage/ Products & Services/ Listed Securities / ETF or ETN / ESG-related Products) and the TIP’s “The Sustainability Themed Indices from Taiwan Stock Exchange & Taiwan Index Plus” (https://www.taiwanindex.com.tw/en) that provide investors who value sustainability with information on ESG products and indices.

For further information, please contact Ms. Lin at 0834@twse.com.tw.