TAIPEI (Taiwan News) — The number of investors in Taiwan-listed exchange-traded funds (ETFs) with portfolios focused on Taiwanese stocks reached 12.6 million as of early February, according to Taiwan Depository and Clearing Corp.
The Taiwan market currently has 83 such ETFs. Since the start of the year, the total number of investors has risen by 433,800, according to CNA and Yahoo Stocks.
Combined market value climbed to NT$4.28 trillion (US$136.4 billion), up nearly NT$1.5 trillion from the same period last year. Without counting dividends, the ETFs' price growth in the Year of the Snake returned an average of over NT$118,300 per investor, according to Yahoo Stocks.
ETFs are professionally managed funds that track specific market indexes and may distribute dividends. For example, the Yuanta/P-shares Taiwan Top 50 ETF (0050) follows Taiwan’s 50 largest listed companies, according to Standard Chartered.
Institutional investors said the 11-day Lunar New Year break highlights ETFs’ appeal, with professional management and systematic stock selection helping reduce risk. For those holding shares over the holiday, dividend ETFs offer regular income and potential price gains, which some investors see as attractive during periods of uncertainty.
Some ETFs pay dividends at intervals ranging from monthly to annually. For instance, an investor holding 10 lots, or 10,000 shares, of a monthly dividend ETF paying NT$1 per share would receive NT$10,000 in monthly dividends.
Capital Fund ETF manager Chen Yuan-yi (陳沅易) said Taiwan’s corporate profits are expected to grow about 20% this year, with possible upward revisions. He noted that artificial intelligence-related industries remain a major growth driver with no clear signs of slowing, making selective stock picking a preferred strategy.
Another Capital Fund ETF manager, Chiu Yu-ju (邱郁茹), said Taiwan is well-positioned to benefit as AI applications gain traction, citing the country’s complete semiconductor ecosystem and its central role in AI chip manufacturing and packaging. Taiwan stocks have shown a long-term upward trend, she added, with high-dividend shares offering growth potential.
