In September 2024, the Financial Supervisory Commission (FSC) launched five major initiatives to promote the internationalization of Taiwan’s asset management industry. In response to the government’s policy to “build an Asian asset management hub,” and with the support of Taiwan Index Corporation’s authorization to link Taiwanese stock ETFs to overseas financial products, KGI Securities (Thailand) successfully issued, on January 17, 2025, depositary receipts (DRs) linked to two high-quality ETFs from KGI Asset Management: —the KGI Preferred Taiwan AI 50 ETF (00952) and the KGI Taiwan Preferred High Dividend 30 ETF (00915)—were listed on the Stock Exchange of Thailand, KGI Asset Management Chairman Ding Shaozeng traveled to Thailand in person to preside over the opening bell ceremony, demonstrating his strong support for the policy through concrete action and reaffirming the firm’s unwavering commitment to “One KGI.”
Chairman Ding Shaozeng noted that Taiwan’s economy remains robust, with a compound annual GDP growth rate of 3.7% over the past five years, making it the top performer among the Four Asian Tigers; the MSCI Taiwan Index’s compound return during the pandemic period (2020–2022) reached 8.5 percent, and its compound return for the five-year post-pandemic period (2020–2024) stood at 18.0 percent. By comparison, the MSCI U.S. Stock Index’s compound returns for the same periods were 7.5% and 14.7%, respectively. The Taiwan stock market is the only major global stock market whose returns rival those of the U.S. market, boosting its appeal to foreign investors.
Chairman Ding Shaozeng further noted that in recent years, Taiwan has become one of the world’s fastest-growing ETF markets. Statistics show that the assets under management of Taiwanese equity ETFs increased by more than 1.3 trillion New Taiwan dollars in 2024, and the number of investors surged by 4.3 million. The booming development of Taiwanese stock ETFs is driven by several advantages, including strong liquidity, transparent disclosure of holdings, and low barriers to entry. Among these, high-dividend ETFs are undoubtedly a key player in the Taiwanese stock ETF market that cannot be overlooked.
Chairman Ding Shaozeng explained that the Taiwan stock market boasts a cash dividend yield that outperforms global markets. Although corporate earnings growth is expected to slow in 2025, it will still remain in the double digits, the cash dividend yield is expected to decline, but the reasonable expected range for high-dividend ETFs is still projected to be between 5% and 8%, which remains quite competitive among major global markets. For foreign investors seeking a steady income stream, this is undoubtedly an excellent option for asset planning.
To allow foreign investors to also benefit from the upward trend in the Taiwan stock market, KGI Securities (Thailand) has specifically launched two depositary receipts (DRs)—one linked to 00915 and the other to 00952. Both use a 1:1 conversion ratio. Thai investors can easily subscribe to these two depositary receipts with Thai baht on the Thai stock exchange, thereby gaining access to the investment opportunities offered by 00952 and 00915.
