This year, the market will introduce active stock ETFs, active bond ETFs, and balanced stock-bond ETFs. These ETFs are familiar investment tools for domestic investors. With the Financial Supervisory Commission permitting the issuance of active and passive balanced ETFs by securities investment trust companies, various firms are actively planning to launch related products, marking a new milestone for Taiwan's ETF market in its journey towards becoming an 'Asian Asset Management Center'.

New active and passive balanced ETFs will have similar trading and redemption structures to current passive ETFs, but their operating strategies will differ, which investors should be aware of. Active ETFs will label their names with 'Active', where the sixth digit of the ticker symbol will be A for stock-focused ETFs and D for bond-focused ETFs. For passive balanced ETFs, the first two letters will be 'Balanced', and the sixth digit will be T.

These new ETFs provide investors with more choices, but it is crucial to understand the associated risks prior to investment. Balanced ETFs adjust their stock-bond allocations to achieve diversification, offering lower trading costs compared to open-end funds or bonds.

Ultimately, whether investors opt for active or passive ETFs, they should carefully compare the features and risks of each option and independently assess risks before making investment decisions.