Taiwan Stock Exchange (TWSE) has welcomed eight new exchange-traded funds on its platform since the start of October, including seven inverse and leveraged ETFs.
As of 14 October 2016, the Taiwan Stock Exchange hosts 61 ETFs with approximately $7.9bn in AUM.
Taiwan’s ETF market has shown significant development recently, providing local investors with a wider range of investment choices including greater access to international and specialty exposures.
Dr. Jun-ji Shih, Chairman of the Taiwan Stock Exchange, commented: “The size of Taiwan’s ETF market has grown quickly over the past few years, especially after the introduction of leveraged and inverse products in 2014. In particular, we are pleased to see the addition of more ETF products tracking markets outside of Taiwan, which are proving particularly popular with investors and are helping further internationalize the Taiwan market.”
The new launches include the Cathay DJIA ETF and the Cathay DJIA Inverse 1X ETF. Issued by Cathay Securities Investment Trust, the Cathay DJIA ETF tracks the Dow Jones Industrial Average, a price-weighted average of 30 significant stocks traded on the NYSE and the NASDAQ exchanges. The index currently includes well known corporations such as Apple, Coca Cola, IBM, 3M, Disney and Visa, among others. The Cathay DJIA Inverse 1X ETF profits from a decline in the Dow Jones Industrial Average.
Other ETFs listed on the exchange this month include funds providing 2x leveraged and single inverse exposure to the TAIEX Index, Taiwan’s market cap-weighted reference for locally-listed firms; single inverse exposure to the price of gold futures contracts; 2x leveraged and single inverse exposure to the price of crude oil futures contracts; and exposure to the KOSPI 200 Index, a market cap-weighted reference for the performance of the 200 largest firms listed in South Korea.
The ETFs launched in October include:
Cathay DJIA ETF
Cathay DJIA Inverse 1X ETF
Fubon TAIEX Daily 2X Leveraged ETF
Fubon TAIEX Daily -1X Inverse ETF
Yuanta S&P GSCI Gold 1x Inverse ER Futures ETF
Yuanta S&P GSCI Crude Oil 2x Leveraged ER Futures ETF
Yuanta S&P GSCI Crude Oil 1x Inverse ER Futures ETF
Yuanta KOSPI 200 ETF
As of 14 October 2016, total assets under management of the Taiwan ETF market was NT$249.5bn (approx. US$7.9bn) across 61 ETFs.