The Taiwan stock market surged by 451 points yesterday, marking a 2.07% increase, closing at 22,242 points, with a cumulative rise of 6.35% over the past month. In 9 trading days, the market closed higher, while it recorded 12 days of declines, indicating a volatile recovery process back to 22,000 points. However, institutional investors found that out of the market cap ETFs in Taiwan, 14 have performed better than the market this year, but only 10 of them have outperformed the market in the last month.

These 10 ETFs include the KGI Top 30 (00938), Mega First Blue Chip 30 (00690), Yuanta Taiwan 50 (0050), and others. Among them, KGI Top 30 (00938) has become the performance leader among Taiwan's market cap ETFs, achieving the only positive return this year.

From observations, those 10 ETFs having performed better than the market both over the past month and this year share a common feature in that their constituent stocks include TSMC and financial stocks. The research team for KGI 00938 states that this ETF comprises 30 constituent stocks and regularly reviews them every May and November, with 12 new stocks added this time from sectors including semiconductors, finance, and construction.

Looking ahead, the research team points out that Taiwan has a complete AI-related supply chain, and as demand for reasoning computing grows, the technology sector is expected to continue benefiting from the AI wave, regaining its investment focus. Meanwhile, the financial sector, which performed well last year, is set to attract market attention as well.

Importantly, Cathay Asset Management's 2x leveraged ETF: Cathay Taiwan Weighted 2x (00663L) has recently undergone a stock split of '1-for-7' and, after a 5-day trading suspension, will resume trading today at a reference price of 24.3 TWD, becoming the cheapest 2x ETF in Taiwan, allowing smaller investors to participate easily.

Prior to the split on June 3, 00663L had a last price of 170.15 TWD; after the split, it became the only 2x ETF available at a market price below 30 TWD, suited for allocation in clear market trends, especially advantageous for short-term rebounds in a volatile environment.

In summary, in conditions of a clear trend in the market, the performance of leveraged ETFs often exceeds expectations, making them good choices for long-term investors and short-term traders alike.