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Yuanta raises $300m in Taiwan for 5G ETF

The launch follows the firm's roll out of Taiwan's first ESG ETF.

Taipei-based Yuanta Funds has launched an ETF that focuses on 5G technology. The Yuanta Global NextGen Telecommunication ETF was listed on the Taiwan Stock Exchange on Tuesday, according to a statement from the firm. The target is both retail and institutional investors, according to a firm spokesman.

The ETF tracks the ICE FactSetGlobal NextGenCommunications Index, according to a separate statement from the Taiwan Stock Exchange.

The index is designed to track the performance of globally-listed companies involved in next generation wireless communications (5G) technologies and services that have at least 50% of revenues derived from the sector, according to the Exchange. Currently, the index has 48 constituents.

During its initial launch, the Yuanta fund gathered NT$ 9.61bn ($314m) from around 30,000 investors, according to a local publication Business Next, which also said Taiwan investors are optimistic about 5G technology.

In September, the firm also launched Taiwan’s first ESG ETF, the FTSE4Good TIP Taiwan ESG ETF.

Separately, Business Next reported that Taiwan’s ETF market is expected to double to NT$1.5trn this year from NT$739bn in 2018, citing data from Taiwan’s Securities Investment Trust and Consulting Association (Sitca).

Yuanta Funds has the most ETFs in Taiwan, managing nearly 40 of the 123 ETFs listed, according to data from the local bourse. It is also the largest fund manager in Taiwan’s onshore market, with assets of around NT$554bn as of the end of October, accounting for 14.5% of Taiwan’s onshore industry, according to data from Morningstar Direct.

Meanwhile, Taiwan firm Shin Kong Investment Trust also launched this week the Shin Kong Barclays Cape US Sector Value ETF, which tracks the Shiller Barclays Cape US Sector Value Net TR Index, which invests in the US market and has around 192 constituents, according to the Taiwan Stock Exchange.


Part of the Mark Allen Group.