Active ETFs have become the recent focus for investment trusts in the Taiwanese stock market. The market disturbances caused by U.S. President Trump have highlighted the importance of active stock selection strategies.

Currently, Nomura and Uni-President have been approved to issue active ETFs, and Cathay Life is set to join the fray, launching its first active ETF on May 5, with plans to list in May.

An active ETF adjusts its investment strategies and stock selections under the guidance of fund managers while tracking specific indexes to seek investment opportunities and exceed market performance amid volatility. In response to changing international conditions, various trusts are entering the competitive active ETF market.

As of April 2025, the active ETF market in Taiwan has been rapidly developing, with 15 investment trusts expressing their intention to issue such products, and the market scale is expected to exceed NT$200 billion within three years.

The latest Cathay Taiwan Selected Active ETF (00982A) is expected to go public on May 22, with an IPO price of NT$10 per share, and a dividend mechanism set for February, May, August, and November, with the first dividend expected to be announced in August. Additionally, Nomura's Active ETF (00980A) is scheduled to list on May 5, while Uni-President's Growth Active ETF is anticipated to be listed between May 7 and 9.

Other firms, such as Invesco, KGI, and Citibank, also plan to launch active ETFs covering various asset classes including stocks, bonds, and multi-assets, with listings expected in the coming months. Cathay Life's Taiwan team indicated that integrating active ETFs can help investors reduce the pressure and time needed for stock selection and adjustments, while capturing opportunities for excess returns.

Note: Investment carries risk; there are profits and losses in investing. Investors should carefully read the prospectus before applying and learn correct investment concepts to minimize the risk of losses.