Young Taiwanese investors drive rapid growth of ETF market

Young Taiwanese investors drive rapid growth of ETF market

Exchange traded funds in Taiwan have seen a dramatic surge in popularity over the past year, with one in four Taiwanese investors in their 20s now holding the investment products, data from the Taiwan Depository and Clearing Corporation show. A total of 27 per cent of all investors in their 20s hold ETFs, one in five investors in their 30s and close to 20 per cent of those under the age of 19, while only 15 per cent of investors over the age of 40 have ETFs. More widely, by the end of 2020, more than 15 per cent of registered investors in Taiwan, or close to 1m people, owned ETF products, a significant jump from 9 per cent in 2019 and 2 per cent in 2014. The size of the island’s onshore ETF market swelled by 135 per cent in the two years to the end of 2020 to NT$1.7tn ($60.1bn) and experts believe 2021 will see an ongoing uptick. ETFs are a relatively new addition to Taiwan’s investment market, for example the Yuanta Taiwan Top 50 ETF, one …
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