Taipei-headquartered Fubon Asset Management has listed three exchange-traded funds linked to the Nifty 50 index on the Taiwan Stock Exchange (TWSE). The launch marks the first time Taiwan-based investors have been able to access the popular Indian equity index via ETF format.
Three Nifty 50 ETFs have been listed on the Taiwan Stock Exchange
The Fubon NIFTY ETF (00652), Fubon NIFTY 2x Leveraged index ETF (00653L), and the Fubon NIFTY -1 Inverse ETF (00654R) track the Nifty 50 Index, the Nifty PR 2X Leverage Index and the Nifty PR 1X Inverse Index, respectively.
The Nifty 50 is the equity benchmark of India. The 50 stock index represents 13 sectors of the economy covering 65% free float market capitalization of the stocks listed on NSE. It is the most widely used ETF benchmark in the Indian domestic market with 13 ETFs tracking the index.
The three indices are designed and maintained by India Index Services and Products (IISL), a National Stock Exchange of India (NSE) group company, that provides a variety of indices and index related services for the capital markets.
According to Mukesh Agarwal, CEO of IISL, India is one of the fastest growing economies in the world and the listing of Nifty 50 based ETFs in Taiwan will ensure that investors in Taiwan can participate in the India growth story.
Sush-Der Lee, Chairman of TWSE, said in a statement: “TWSE has been actively developing Taiwan’s ETF market over the past few years, with the number of ETFs listed on TWSE now reaching forty, with total assets under management of more than US$6.8 billion. In 2015, the total trading value of Taiwan’s ETF market reached a record US$51.4 billion. The introduction of the Fubon Nifty ETFs is consistent with the Financial Supervisory Commission’s (FSC) promotion of the Financial Import Substitution program and will boost the growth of Taiwan’s ETF market. We hope that the launch of these new products will help us rapidly expand our connections with more overseas markets in order to increase the competitiveness of our capital market.”
Gang Shyy, Chairman of Fubon Asset Management, added: “India is the third largest market in Asia in terms of market value and trading volume after Greater China and Japan. Although there are structural problems in India, it is emerging as an important market for risk diversification in terms of investment from Greater China. The India Index ETFs launched by Fubon Asset Management can not only help investors diversify portfolio risks, but also provide them with a comprehensive trading tool through leveraged and inverse ETFs.”
The new offering brings the number of ETFs on the TWSE to around 40, with other ETFs tracking mainland China, Hong Kong, Japan and the US Securities markets. According to the Securities Investment Trust & Consulting Association (SITCA), Taiwan investors invested around US$20.2 billion in single-country offshore funds as of the end of 2015.
The launch of the ETFs follows news last week that the exchange now has a dedicated index business.