The Taiwan stock market has shown a strong performance this year, with an increase of nearly 60%. As of July 7, the market has accumulated a rise of 57%, while the average return of actively managed ETFs reached 67.7%. Notably, the Yuanta Taiwan High Dividend Quality Leaders Fund has achieved an astonishing return of 120.5%, significantly outperforming the average profit of 73.1% for similar funds.

According to the latest data from the Central Securities Depository, the Yuanta Taiwan 50 ETF (0050) topped the list for the highest increase in the number of beneficiaries over a week, attracting 34,000 new investors and bringing the total number of investors to 3.273 million. This also resulted in a net subscription amount of 20.41 billion TWD in just one week. Additionally, during the dividend distribution season, high dividend ETFs have gained popularity, with the Cathay Taiwan Selected High Dividend ETF (00919) and Yuanta High Dividend ETF (0056) seeing increases of 15,000 and 14,000 new beneficiaries, respectively.

In contrast, the performance of actively managed ETFs has been lackluster. The actively managed Unified Taiwan Growth ETF (00981A) and Unified Upgrade 50 ETF (00403A) have seen a decline in investor numbers for three consecutive weeks, both falling below one million investors. Recent data shows that these ETFs faced net redemptions of 6.1 billion TWD and 2.72 billion TWD, respectively.

Market analysts suggest that the shift in funds from actively managed to market-cap-based products is due to the latter's ability to closely follow market trends without the risk of manager selection errors. This allows investors to participate steadily in bullish market conditions. Conversely, during periods of market volatility, the difficulty of stock selection for actively managed ETFs increases significantly, which could erode profits. If their performance cannot consistently surpass the market index, coupled with higher management fees, they become less attractive to investors.

Investors are reminded to carefully evaluate risks when making decisions and to take responsibility for their investment outcomes. Investing carries risks, and fund investments can result in both gains and losses; therefore, it is essential to read the prospectus before subscribing.