Taiwan's exchange-traded fund (ETF) market has defied global market trends, with assets reaching NT$2.3 trillion (US$74.9 billion) and a record-high 236 ETF listings in 2022.
The momentum has carried into 2023, with ETF assets reaching NT$2.7 trillion and 6.4 million investors as of April.
Retail investors make up 99.7% of Taiwan's ETF market, a significant difference from other regional markets dominated by institutional investors.
Young investors' interest in ETFs, fueled by influencers and key opinion leaders, has driven innovation and growth. Dividend-paying and bond ETFs have been particularly popular. ESG investing has also gained traction, with government commitments to a net-zero transition plan and the development of an ESG assessment framework creating opportunities for sustainability-focused ETFs.
"Taiwanese investors' interest in high-dividend and bond ETFs remains strong," says Joanne Peng, research analyst with Cerulli. "Government support for low-carbon goals should drive the rollout of more low-carbon ESG ETFs in the market."
The market's growth is expected to be influenced by government policies, while retail investors continue to play a significant role in Taiwan's ETF landscape.
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