Taiwan Stocks Swing Over 1,000 Points, Foreign Investors Sell Nearly 100 Billion
Taiwan stocks staged sharp volatility on the 4th, with the TAIEX plunging over 1451 points intraday before rebounding over 1,000 points from the low to close down 358.63 points at 42948.91 points, with turnover topping 1.1 trillion. Foreign investors sold a net 1498.99 billion in Taiwan stocks that day, becoming the main selling pressure. As foreign investors continued to adjust positions amid wide index swings, ETF funds dubbed the fourth legal person entered the market, with index ETF trading remaining active.
0050 Sees Explosive Volume, Bull 2X ETFs Top 1.35 Million Lots Combined
Looking at ETF trading that day, Yuanta Taiwan 50 (0050) reached trading volume of 38.96 lots and turnover of 38.66 billion, closing at 99.85, down 0.75 or 0.75%, with an intraday low of 97.55. Yuanta Taiwan 50 Bull 2X (00631L) closed at 30.85, down 0.63 or 2%, with volume of 52.75 lots and turnover of 16.169 billion; Capital Taiwan Weighted Bull 2X (00685L) closed at 10.14, down 0.17 or 1.65%, with volume of 82.36 lots, the two Bull 2X ETFs combining for over 1.35 million lots in volume and about 24.418 billion in turnover.
Other Popular ETFs Remain Active
Among other popular ETFs, Active Uni-President Taiwan Growth (00981A) rose 0.96% against the trend to close at 25.14, with volume of 40.62 lots; KGI Taiwan TOP50 (009816) fell 0.86% to close at 14.91, with volume of about 30.53 lots; Active CTBC Taiwan Income (00406A) topped the volume ranking with 136.6 lots. Institutional analysts said foreign investors may be adjusting Taiwan stocks for global asset allocation, currency or hedging needs, while market-cap ETFs let investors hold large-cap stocks in a diversified way through a single product without picking stocks themselves, and as scale expands they have become a key indicator of fund structure.
First-10-Month Net Subscriptions of 730 Billion, Up 2.17 Times Year-on-Year
According to statistics, as of the end of October this year, cumulative net subscriptions in 0050 topped 730 billion, about 2.17 times the 335.9 billion for full-year 2025, an increase of nearly 400 billion; 00631L also attracted over 180 billion in inflows over the same period. Including products such as Yuanta High Dividend (0056), Yuanta Tech Market Cap (0053) and KGI Taiwan TOP50 (009816), total Taiwan stock ETF inflows this year are estimated to have topped one trillion. Compared with foreign investors' sharp reduction of 2.4 trillion in Taiwan stocks so far this year, ETFs continued to post net subscriptions, reflecting rising enthusiasm among domestic investors to participate in the market through index products.
Bull 2X Up Over 100%, Leverage Risks to Watch
In terms of performance, from the start of the year to the end of October, 00631L rose 106.5%, 0056 returned 68.7%, and 0050 rose 62.2%, with institutions noting this year's rally was led by large tech stocks and the AI supply chain, lifting market-cap ETFs. Notably, 00631L is a daily 2X leveraged ETF whose returns are affected by daily moves, compounding and volatility, so long-term performance does not necessarily equal twice the cumulative return of the underlying index. As volatility intensifies, active turnover does not mean prices have bottomed, and investors need to watch whether foreign selling eases, whether ETF net subscriptions continue, and whether large-cap heavyweights can stabilize.