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🇹🇼 Taiwan /Economy & Trade

Cheapest Taiwan Leveraged ETF 00685L Resumes Trading After Split, Sees Huge Volume

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • Taiwan's cheapest leveraged stock ETF, 00685L, resumed trading after a 1-for-24 split, attracting significant volume.
  • The ETF, which gained 136.84% in the first half of the year, saw its reference price fall to NT$12.75 post-split.
  • Fund managers remain optimistic about Taiwan's stock market, citing strong corporate earnings and upward revisions to economic growth forecasts.

The cheapest leveraged Taiwanese stock ETF, 00685L, has resumed trading after a significant 1-for-24 split, immediately becoming the most popular stock on the exchange. The fund, which had already achieved a remarkable 136.84% gain in the first half of the year, saw its reference price adjust to NT$12.75 following the split. Early trading saw it open at NT$13.09, with trading volume rapidly exceeding 530,000 shares within the first hour.

AI long-term trend remains unchanged, Taiwan stocks can continue to enjoy the dual benefits of profit and capital appreciation.

— Qunyi Investment Trust Taiwan Stock ETF Research TeamThe Qunyi Investment Trust Taiwan Stock ETF Research Team expressed optimism about the market's prospects.

Fund managers at Qunyi Investment Trust expressed optimism for the latter half of the year, citing the enduring AI trend and strong fundamentals supporting potential gains in both profits and capital appreciation for Taiwan's market. They noted a growing consensus among institutional investors that the stock index is heading towards the 50,000-point mark. However, they cautioned investors about the inherent risks of leveraged ETFs, particularly their amplified losses during market downturns, emphasizing the need for risk management aligned with individual financial goals.

The index moving towards the 50,000-point mark has gradually become a market consensus among domestic and foreign institutional investors.

— Qunyi Investment Trust Taiwan Stock ETF Research TeamThe research team highlighted the growing consensus on the stock index's future trajectory.

Hong Xiang-yi, the ETF manager for 00685L, highlighted robust corporate earnings, with upward revisions to Taiwan's EPS growth forecast reaching 50%. He also pointed to strong macroeconomic data, including a significant upward revision of Taiwan's 2026 GDP growth forecast to 12% by Bank of America. Technical analysis suggests the market is continuing its upward trend along the monthly line, with support found during pullbacks. The quarterly line is identified as a stronger support level for potential buying opportunities during larger market corrections, reinforcing a positive outlook for the Taiwanese stock market.

Leveraged ETFs operate with daily rebalancing; when the market falls, the shrinkage of assets is also magnified.

— Qunyi Investment Trust Taiwan Stock ETF Research TeamThe team cautioned investors about the risks associated with leveraged ETFs.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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