Taiwan’s Yuanta Securities Trust is planning a one-for-five share split for its flagship exchange-traded fund in a bid to turn the fund into the largest ETF in Taiwan.
The share split will “significantly lower” the minimum investment into the Yuanta Taiwan 50 ETF and help it to become Taiwan’s first ETF with more than NT$500 billion (US$15.26 billion) of assets, according to Julian Liu, Yuanta’s chairman.
Launched in 2003, the fund is Taiwan’s first ETF, with around NT$460 billion of assets currently.
“The fund will continue to drive balanced development of the industry's market value-based and high-dividend ETFs,” Liu says in a statement announcing the share split on February 17. “It will lead the Taiwan stock market towards the Asian and international markets.”
Electronic voting on the share split plan is scheduled from April 2 to April 21.
The move comes after Yuanta, Taiwan’s largest ETF manager, announced last month that it was slashing total expense ratio for the Yuanta Taiwan 50 ETF by more than 60% to attract new capital.