Over Two Thousand Points Off High, ETF Beneficiaries Hit New High
During the Taiwan market holidays, AI startup giant Anthropic filed for an IPO, driving fund rotation in U.S. stocks, while market concerns over cash flow at major cloud service providers intensified, heightening volatility in Taiwan and U.S. equities. After hitting a high of 49968.92 on October 6, Taiwan stocks trended lower, with the weighted index down a total of 2312 points since October, with more decliners than advancers and cautious investor sentiment.
Four Funds Add Over Ten Thousand Holders in a Week, Seven Add Over Ten Thousand in a Month
However, the number of beneficiaries of listed Taiwan ETFs continued to hit a new high, reaching 2380 million people, up 330,000 from last week and up sharply by 1.17 million from the end of last month. Among the 10 Taiwan ETFs with the most beneficiaries, most posted positive growth versus last week and last month, with all posting growth last week, showing investors were undeterred by volatility and instead bought on the correction, with Taiwan stock fundamentals remaining attractive.
Looking closer, 4 funds added more than ten thousand beneficiaries in a single week, including Yuanta Taiwan 50(0050), Yuanta High Dividend(0056), KGI Taiwan TOP50 (009816), and the Active Uni-President Taiwan Growth (00981A). Since the end of September, 7 funds have added more than ten thousand holders, of which those growing by more than ten thousand both in the past week and the past month were Yuanta Taiwan 50(0050), Yuanta High Dividend(0056) and KGI Taiwan TOP50 (009816).
Earnings Week Focuses on Cash Flow, P/E Ratio Back to Reasonable Range
This week Taiwan and U.S. tech giants are reporting earnings in succession. Besides profit performance, capital expenditure and cash flow are also market focuses and the core of recent volatility. The KGI Taiwan TOP50 (009816) ETF research team said the medium- to long-term bull market structure for Taiwan stocks remains unchanged, with 2026 EPS growth still expected to post double-digit growth, leading indicators continuing to move upward after correction, and Taiwan PMI rising from 62.5 to 63.4, remaining in expansion territory. After the correction, Taiwan stocks' P/E ratio has fallen below 17 times, returning to the upper end of a reasonable range, offering opportunities to build positions in batches to capture long-term growth opportunities.