First-Ever U.S.-Focused ETFs Debut On Taiwan Stock Exchange - Three ETFs Provide Taiwan Investors With Diverse Ways To Access 500 Of The Largest Companies Listed On NYSE And NASDAQ

The first-ever ETFs tracking the Standard & Poor’s 500 Index (S&P 500) debuted on the Taiwan Stock Exchange (TWSE) today, adding further diversity to Taiwan’s fast-growing ETF market. 

The three ETFs, issued by Yuanta Securities Investment Trust Co., Ltd., provide investors with a choice of ways to track the S&P 500, which is made up of 500 of the largest companies listed on NYSE and NASDAQ and captures approximately 80% the market capitalization of U.S. markets. 

The ‘Yuanta S&P 500 ETF’ aims to match the performance of the S&P 500, while the ‘Yuanta Daily S&P 500 Bull 2X ETF’ and ‘Yuanta Daily S&P 500 Bear 1X ETF’ aims to replicate two times the daily movement and an inverse of the daily movement of the S&P 500 respectively.

The three ETFs are the first in Taiwan to track stocks listed in a different timezone, making it easier for Taiwan investors to manage their global asset allocations in a flexible and cost-efficient manner. 

Mr. Shin-chung Chen, Senior Vice President of Corporate Planning & Strategy Department of the Taiwan Stock Exchange, said, “The launch of the S&P 500 ETFs is the first such product in Taiwan to allow investors to gain direct exposure to the United States markets, the largest and most liquid in the world. It is also another major step in the development of TWSE’s ETF market, which has expanded significantly in recent years. We will continue to work together with issuers to bring more innovative investment products to the Taiwan market.”

The size of Taiwan’s ETF market has grown at a fast pace during 2015 with a number of new and innovative ETF products listing on TWSE, including leverage and inverse ETFs tracking Japan’s TOPIX index, the first ever ETF tracking the crude oil market and the first ever ETF tracking Shenzhen’s SME Board. This aligns with TWSE’s strategy to introduce more diversified products to meet the evolving needs of investors and increase linkages with overseas stock exchanges.

As of November 2015, the total size of the Taiwan ETF market was NT$203.2 billion (US$6.22 billion), with an average daily trading value of NT$8.09 billion. This represented 8.98% of total trading on TWSE.