Broad Market Plunges 1612 Points, ETF Popularity Rises Against Trend
Taiwan stocks have seen increased volatility recently, plunging 1612 points again on November 3, with semiconductor stocks under heavy selling pressure. However, related ETF popularity has grown rather than declined, as investors appear to keep buying on pullbacks. According to Taiwan Depository & Clearing Corporation statistics, as of last Friday October 30, the 6 domestic Taiwan semiconductor ETFs totaled 600468 beneficiaries, topping the 600000 mark for the first time and posting positive growth for 5 consecutive weeks, with 5 funds setting new historical highs in beneficiaries.
00927, 00891 Together Account for Over 70%
By beneficiary count, Capital Semiconductor Income 00927 led with 239918, followed by CTBC Key Semiconductor 00891 with 206666, together exceeding 440000 and accounting for about 74% of total beneficiaries. The rest were Taishin Taiwan IC Design 00947 with 56360, Fubon Taiwan Semiconductor 00892 with 46941, Taishin Taiwan Semiconductor 30 00904 with 32041, and Mega Taiwan Wafer Manufacturing 00913 with 18542. Except for 00892, which has not yet set a new historical record, the other 5 funds all hit record highs in beneficiaries, reflecting continued investor interest in semiconductor ETFs amid market volatility.
Total Return Including Dividends Over 120% for All 6 Funds
In terms of performance, based on CMoney statistics and closing prices and dividend data, as of November 3, the total return including dividends since the end of 2024 exceeded 120% for all 6 semiconductor ETFs. Among them, 00947 led with 145.20%, 00913 reached 143.19%, 00904 was 138.84%, 00891 was 125.54%, 00892 was about 122.98%, and 00927 was 121.48%. This shows that despite short-term correction pressure, long-term accumulated returns remain substantial.
Long-Term AI Demand Still Provides Support
Taishin Taiwan Semiconductor 30 ETF manager Huang Yu-min noted that U.S. stocks saw clear sector rotation in October, with the Philadelphia Semiconductor Index pulling back sharply, highlighting that semiconductor and AI supply chains face dual pressure from earnings expectations and valuation adjustments, but after related risks were gradually reflected in share prices, medium- to long-term support remains from AI industry demand and corporate earnings growth. Morgan Stanley Chairman and CEO Ted Pick recently said global AI capital expenditure could reach 10 to 15 trillion U.S. dollars over the next 10 years, likening it to a baseball game where the current AI investment cycle is only in the second inning of nine. He expects AI-driven productivity gains could contribute 0.5 to 0.7 percentage points per year to U.S. real GDP growth. The Taishin SITE investment team believes AI capital expenditure expansion, volume production of next-generation AI chip platforms, and wider enterprise AI adoption are the three major long-term growth drivers supporting Taiwan's semiconductor supply chain, but whether this continues to be reflected in share prices still depends on corporate earnings and market valuation changes, and advises long-term bulls not to rush amid volatility, but to participate through staggered investments in leading semiconductor stocks or related ETFs, while watching industry concentration and price volatility risks.