TAIPEI (Taiwan News) — Yuanta Securities announced plans on Monday to grow the market capitalization of Taiwan’s largest exchange-traded fund (ETF) beyond NT$500 billion (US$13.54 billion), with a strategy that includes incrementally lowering fees.

Speaking at a company event, Yuanta Securities Chair Liu Tsung-sheng (劉宗聖) expressed optimism about the continued expansion of Taiwan’s ETF market, per CNA. He pointed to the strong performance of ETFs in Chinese, Japanese, and US markets last year, saying that market capitalization growth has become a mainstream trend.

Liu said Yuanta reduced fees for its Yuanta/P-shares Taiwan Top 50 ETF (0050) before the Lunar New Year to attract more investors. Currently valued at around NT$446.9 billion, the fund is on track to surpass NT$500 billion, though Liu did not specify a timeline.

He noted that the fund’s management fees currently stand at 0.11%, with custodial fees at 0.03%. These will gradually decrease as the fund expands and management costs are distributed across a larger investor base. If the fund surpasses NT$500 billion, fees will drop to 0.08%, and if it exceeds NT$1 trillion, they will fall further to 0.05%.

According to Taiwan Stock Exchange data, 181 ETFs are currently traded in Taiwan. The Yuanta/P-shares Taiwan Top 50, launched in 2003, remains the country's largest ETF, with approximately 784,000 investors.