TECH - Key Nvidia Apple Supplier TSMC-Led AI Stock Craze Boosts Taiwan's ETF Market With $50B Surge | Benzinga
The landscape of Taiwan’s investment market is undergoing a significant transformation, with exchange-traded funds (ETFs) at the forefront of a financial revolution. The latest reports indicate a remarkable growth in the sector, propelled by the fervor surrounding artificial intelligence (AI) stocks.
What Happened: Taiwan’s exchange-traded funds (ETFs) market is experiencing a massive boom, with investments in local stock ETFs surpassing $50 billion, a significant leap from the previous year, Bloomberg reported on Tuesday.
Driven by a surge in artificial intelligence (AI) stocks, the frenzy has seen the local benchmark index climb by 30% in the past year. The growth is largely attributed to a 55% gain by Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), a major semiconductor supplier for Apple and NVIDIA.
Retail investors, who make up about 80% of equity fund assets in Taiwan, are increasingly pouring their savings into ETFs. This contrasts with Japan and China, where central banks and government entities are the primary buyers. Bloomberg Intelligence forecasts that by December, one-third of Taiwanese will own ETF shares.
However, the rapid expansion has raised concerns among Taiwanese officials. The central bank governor and the Financial Supervisory Commission (FSC) have warned about the risks and potential misleading marketing practices surrounding ...