TAIPEI (TVBS News) — The Mega Taiwan-U.S. Momentum Balanced ETF (兆豐台美動能股債平衡ETF) debuted on the Taiwan Stock Exchange (台灣證券交易所), Taiwan's primary stock market, Friday (Dec. 26), marking the island's first conditionally balanced ETF. The innovative financial product automatically adjusts its stock and bond ratios based on market performance, reflecting investor confidence in new financial instruments, according to Lin Hsiu-ming (林修銘), chairman of the Taiwan Stock Exchange.
Since regulators opened the doors for active and balanced ETFs, the exchange has seen 15 new ETFs listed, with assets surpassing NT$150 billion (around US$4.8 billion). The conditionally balanced ETF offers investors a one-stop asset allocation solution, designed to blend "stock growth momentum" with "bond defensive stability." The product enhances investment efficiency and convenience.
The Taiwan Index Plus Corporation (台灣指數公司, TIP), Taiwan's index provider, and Bloomberg Index Services Limited (BISL) collaborated to compile this ETF, which integrates characteristics of Taiwan stocks and U.S. Treasury assets. The ETF dynamically switches its stock-bond allocation among four scenarios: aggressive, stable, conservative, and special, based on predefined market conditions.
Lin emphasized that Mega Funds' (兆豐投信), a Taiwan-based asset management firm, launch of this ETF signifies a new era of flexible asset allocation in Taiwan's ETF products, showcasing a commitment to market development. The Taiwan Stock Exchange will continue to support regulatory efforts aimed at promoting Taiwan as an Asian asset management hub, highlighting the resilience and vitality of Taiwan's capital market. ◼ (At time of reporting, US$1 equals approximately NT$31.4)
