TAIPEI (Taiwan News) — Trading in Taiwan stock exchange-traded funds has recently shifted toward actively managed products, with activity picking up since late April, CTEE reported Thursday.
Institutional investors said sector leadership in Taiwan’s stock market has been rotating more quickly as the benchmark index continues to hit record levels. That rotation has also been reflected in ETFs, which hold baskets of stocks and track different strategies.
Active ETFs, high-dividend ETFs, index-tracking ETFs, and sector-focused ETFs have each taken turns leading trading interest. Since April 27, when Taiwan’s benchmark index first reached 40,000 points, average daily odd-lot trading volume in active Taiwan ETFs has continued to rise.
Data from CMoney showed that average daily odd-lot trading volume in active Taiwan ETFs over the past month was about 7.09 million shares. From April 27 to Thursday, that figure increased to about 8.61 million shares, a 21.47% rise.
Trading activity has not been evenly distributed. Among 14 active Taiwan ETFs, nine saw higher average daily odd-lot volume, while five recorded declines.
The most actively traded fund in the period was UPAMC Taiwan Growth Active ETF (00981A), with an average of about 5.64 million shares traded per day. In terms of growth rate, FSITC Taiwan Momentum Active ETF (00994A) led the group, with trading volume rising 62.3% from April 27.
FSITC Taiwan Momentum Active ETF manager Chang Cheng-chung (張正中) said May marks the start of Taiwan’s dividend distribution season, which may provide additional support for income-focused stocks. He added that long-term growth themes remain centered on AI-related manufacturing and passive components.
At the same time, Chang noted that short-term volatility could increase at current market levels. He suggested investors consider approaches such as odd-lot trading or regular fixed-amount investing to help smooth price fluctuations over time.
Active ETFs were introduced in Taiwan in May 2025 as a new product category. They differ from traditional passive ETFs such as the Yuanta/P-shares Taiwan Top 50 ETF (0050), which tracks Taiwan’s 50 largest listed companies by market value, according to Bank Sinopac and Money101.
Unlike passive ETFs that follow a fixed index and only adjust when the index changes, active ETFs are managed by fund managers who can adjust holdings based on market conditions, research views, or strategy changes, according to Dawho.
From April 27 through Thursday, the strongest trading volume growth among active ETFs included 00994A, Fuh Hwa Taiwan Future 50 Active ETF (00991A), CTBC Taiwan Excellence Active ETF (00995A), and 00981A. All four have gained more than 70% so far this year.
