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Ten most popular ETFs with Taiwanese investors following dollar-cost averaging strategy

2022/03/29

The dollar-cost averaging (DCA) investment scheme has been well-received by Taiex investors since it became available in 2017. In February 2022, local retail investors bought NT$3.74bn worth of shares via the DCA investment scheme, up 61% YoY, and the number of investors using the DCA scheme also rose about 68% YoY to 338k, according to TDCC’s Big Data Platform.

The volume of stock trading via the DCA scheme has been growing at a steady pace. In the meantime, we notice that ETFs are gaining traction among investors. Yuanta/P-shares Taiwan Top 50 ETF (0050) and Yuanta/P-shares Taiwan Dividend Plus ETF (0056) were most favored by investors, attracting 115k and 95k DCA investors, respectively, in February, followed by Fubon Taiwan 50 Index ETF (006208), Cathay Taiwan Select ESG Sustainability High Yield ETF (00878) and Fubon TWSE Corporate Governance 100 ETF (00692) with a respective 51k, 46k and 24k DCA investors.

The majority of the 10 most popular ETFs with DCA investors are linked to benchmark companies, high-yield and corporate governance securities, in line with long-term investors’ preference for companies that value sustainability and offer consistent dividends. Some specific themes and their related ETFs are also highly sought after by retail investors. Although only listed for less than a year, Fubon FTSE Vietnam ETF (00885) and Cathay Global Autonomous and Electric Vehicle ETF (00893) are among the ten most popular ETFs with DCA investors. Indeed, income source diversification and early preparation for retirement have become some of the most discussed topics in Taiwan in the face of high inflation.

TDCC Chairman and CEO Sherman Lin said TDCC’s Big Data Platform uses cutting edge technology to provide visualized and interactive information on stocks, bonds, bills, funds and cross-border assets. The purpose of the platform is to encourage the general public to engage the financial market, and contribute to the long-term development of Taiwan’s capital market by facilitating innovation and digitization.

Ranking of Taiex ETF by DCA investor number in February

Ranking Ticker ETF DCA investor number in February
1 0050 Yuanta/P-shares Taiwan Top 50 ETF 115,731
2 0056 Yuanta/P-shares Taiwan Dividend Plus ETF 95,901
3 006208 Fubon Taiwan 50 Index ETF 51,550
4 00878 Cathay Taiwan Select ESG Sustainability High Yield ETF 46,860
5 00692 Fubon TWSE Corporate Governance 100 ETF 24,753
6 00881 Cathay Taiwan 5G Plus Communications ETF 22,528
7 00850 Yuanta FTSE4Good TIP Taiwan ESG ETF 11,284
8 00893 Cathay Global Autonomous and Electric Vehicle ETF 9,682
9 00885 Fubon FTSE Vietnam ETF 8,808
10 00701 Cathay TIP Taiex+ Low Volatility Select 30 ETF 6,531

Source: TDCC Big Data Platform

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