Taiwan’s active exchange-traded funds, which made their debut this year, are attracting new issuers and showing strong growth potential, according to a senior executive of the Taiwan Stock Exchange (TWSE).
The Financial Supervisory Commission (FSC) approved active ETFs last December, and 11 of the 13 ETFs listed thus far are active funds with more than NT$60 billion (US$1.95 billion) of assets.
“This marks a new chapter for Taiwan’s ETF market, opening the door for more international managers to participate in onshore active ETF businesses,” Huang Hsin-I, vice president of corporate planning and strategy department at the TWSE, said at an investment forum organised by Asia Asset Management in Taipei on October 28.
“There remains significant growth potential compared to other developed active ETF markets like the US,” she added.
The US is the largest active ETF market in the world, with more than 1,800 funds. Three-quarters of new ETFs listed in the US over the past two years were active funds.
In Taiwan, the ETF market kicked off in 2003 with the launch of the Yuanta/P-shares Taiwan Top 50 ETF.
Over the past decade, Huang said ETF assets increased 35-fold to stand at around $230 billion as of September 2025 compared to a 439% increase globally over the same period.
Taiwan is now the third largest ETF market in Asia Pacific after Japan and China.
“Taiwan’s ETFs have already achieved a certain level of maturity, and they are increasingly accepted by investors,” Huang said.
She attributed the growth to the fact that the product mix has evolved from broad-based ETFs to a range of innovative products, including inverse and leverage funds and now active funds.
“This development reflects a dynamic and expanding market,” she said.
