22 Hit New Highs, 18 Are Passive
According to CSD statistics, as of October 16, among 86 Taiwan active and passive equity ETFs, a total of 22 saw beneficiary counts hit new highs. Of these, 4 were active and 18 were passive, showing recent strength in passive ETF popularity, overtaking active ETFs. Market analysis notes that entering U.S. tech earnings week, tech stocks still have bullish catalysts, and the medium- to long-term AI and semiconductor technology structure has not weakened. The broad market is expected to have a chance to build a base near the quarterly line, with index performance dipping before rebounding. Investors are advised to buy Taiwan AI, semiconductor, and technology passive ETFs on market pullbacks, to continue capturing the AI infrastructure dividends built by Taiwan on computing chips, servers and other key technologies next year.
Semiconductor ETFs Lead, 6 Double in Return
Looking at participant growth since October and 1-year performance, semiconductor ETFs stood out. Including Taishin Taiwan IC Design 00947, CTBC Key Semiconductor 00891, and Capital Semiconductor Income 00927, all three not only added more than 10,000 holders since October, but also more than doubled in 1-year total return, the most eye-catching performance. In addition, Taishin Taiwan Semiconductor 30 00904 and Mega Taiwan Foundry 00913 added 7,261 and 5,520 beneficiaries respectively since October, with 1-year returns also exceeding 100%. Overall, a total of 6 ETFs doubled in 1-year performance, showing that for Taiwan equity ETFs, active or passive, standout performance directly drives buying interest.
Managers Bullish Into 2027, Warn of Headwinds
Taishin 00947 and 00904 ETF manager Huang Yu-min said the record beneficiary counts for multiple semiconductor ETFs in October reflected attractive high-dividend payout policies launched by investment trusts, as well as strong past performance of passive semiconductor ETFs, whose medium- to long-term total returns have clearly beaten the broader market and market-cap ETFs, offering both capital gains and high dividends, a key reason for strong investor demand this year. He noted that persistently high U.S. Treasury yields will create headwinds for high-valuation semiconductor stocks, market confidence is easily affected by noise, and short-term consolidation is likely. But with U.S. and Taiwan markets linked, amid liquidity-driven momentum, semiconductor subsectors are rotating quickly, and even quality stocks facing short-term negative news mostly find dip-buying support on pullbacks, showing positive sentiment, mostly from long-term investors.
AI Capex Keeps Rising, Taiwan Supply Chain to Benefit
Looking to the fourth quarter of this year and even 2027, earnings reports and latest company outlooks from the four major U.S. cloud service providers show global AI capital spending continues to increase, with model improvements and iterative application innovation accelerating positive impacts across industries, while Taiwan's semiconductor industry remains the core of the global industry chain value, with the bull market extending at least into 2027, and peak-season momentum still expected from year-end into early next year. In addition, Tesla officially unveiled the next-generation Roadster flying sports car, with a body combining SpaceX propulsion technology capable of hovering, flipping and landing, targeting mass production in 2028, involving new business opportunities for Taiwan ASIC and other IC design supply chains. With future expansion into autonomous vehicles, robots and AI computing, demand for advanced-process chips and ASIC chips is expected to be strong, driving the performance of semiconductor supply chains including TSMC and Global Unichip, with an optimistic medium- to long-term outlook. Investing involves risks; please read the prospectus carefully and evaluate prudently before subscribing.