Yuanta Funds launches the 1st exchange traded fund in ROC
Taiwan’s first commodity futures exchange traded fund, Yuanta Funds’ ( ) Standard and Poor’s Goldman Sachs Gold ER Index equity fund, was publicly listed yesterday.
The fund’s name will be shortened to Yuan Gold ETF, with its stock symbol being 00635U.
Yuanta Funds CEO Justin TS Liu ( ) said yesterday that the gold ETF in Singapore was at one point the most traded ETF in the world, and sees considerable acceptance in both Japan and South Korea.
The gold ETF released by the Mitsubishi UFJ Financial Group has grown in the past as well, said Liu. “When the Japanese yen depreciates compared to the U.S. dollar, gold prices have dropped 1.07 percent from 2014 to March 2015, yet the same period saw ... a 21.43 percent growth in units of mutual funds purchased by investors. So we can see that gold investment is coming back into the market as we are battling depreciation.
“According to our experiences in Japan and South Korea, commodities like gold and crude oil ETF’s have their own unique and functional places in asset allocations,” said Liu.