NSE launches three Nifty based ETFs on Taiwan Stock Exchange

Leading bourse National Stock Exchange (NSE) on Tuesday launched three Nifty-based exchange traded funds (ETFs) on Taiwan Stock Exchange, a move that will provide investors with more strategic options to hedge risk and enrich their investment portfolio.

The three ETFs – Fubon Nifty ETF, Fubon Nifty 2X Leveraged Index ETF and Fubon Nifty 1 Inverse Index ETF – track the Nifty 50 index, Nifty PR 2X Leverage index and Nifty PR 1X Inverse index, respectively.

The three indices were created and maintained by India Index Services and Products (IISL), a NSE group company.

With this, ETFs based on Nifty family of indices are now available for trading in 19 exchanges across the world.

"The listing of Nifty 50 based ETFs in Taiwan will ensure that investors in Taiwan can participate in the India growth story. Nifty 50 is the benchmark index of India," IISL Chief Executive Officer Mukesh Agarwal said in a statement, adding, "It is a well diversified 50 stock index representing 13 sectors of economy covering 65% free float market capitalisation of the stocks listed on NSE."

Nifty 50 is a widely used ETF benchmark in the Indian domestic market with 13 ETFs tracking the index.

The listing of the Nifty ETFs will further expand the range of ETFs tracking overseas securities that are currently available on Taiwan Stock Exchange.

The new products will also provide Taiwan investors with a more cost-efficient way to access the Indian market as well as to further popularise Taiwan's ETF market globally.

"... Launch of these new products will help us rapidly expand our connections with more overseas markets in order to increase competitiveness of our capital market,"  said Sush-Der Lee, Chairman, Taiwan Stock Exchange, adding, "With the support of the relevant authorities, we are also committed to deepening the cooperation between Taiwan and India as well as other markets to provide more diversified products for investors."

Taiwan Stock Exchange has been actively developing its ETF market over the past few years, with the number of ETFs listed on it now reaching 40 and total assets under management of over $6.8 billion.

In 2015, the total trading value of Taiwan's ETF market reached a record $51.4 billion.