Taiwan 50 Index Component Adjustment Takes Effect After Market Close, Affecting ETF Fund Flows

(CNA Reporter Tseng Jen-kai, Taipei, 18th) The much-watched adjustment of the Taiwan 50 Index components took effect after market hours on the 18th. Four new stocks were included: BizLink-KY, GUC, Nan Ya PCB, and Zhen Ding-KY, while four stocks—Radiance, China Steel, Formosa Plastics, and Hotai Motor—were removed.

The Taiwan 50 Index, co-compiled by the Taiwan Stock Exchange and FTSE International, is the index tracked by popular market-cap weighted ETFs such as the Yuanta Taiwan 50 (0050) and the Fubon Taiwan 50 (006208). The current asset size of 0050 is NT$2.17 trillion, and 006208 has a size of NT$451 billion, with the two funds totaling approximately NT$2.62 trillion. The adjustment of the Taiwan 50 Index components triggers a massive shift of capital in the Taiwan stock market and is therefore highly anticipated.

Analysts note that in this Taiwan 50 Index adjustment, the four newly included stocks are all AI-related tech companies, whereas the removed ones—China Steel, Formosa Plastics, Hotai Motor, and Radiance—are mostly established leaders in traditional industries, highlighting a generational shift in Taiwan's industrial landscape.

In addition to the Taiwan 50 Index, the component stock adjustment for the Taiwan High Dividend Index, tracked by the leading domestic high-dividend ETF Yuanta High Dividend (0056), also took effect after market hours today. Five new stocks were added: Chung-Hsin Electric, Far EasTone, Nan Ya Plastics, Nanya Technology, and Winbond.

Simultaneously, four original component stocks—Makalot, Radiant Opto-Electronics, TYG, and Tung Ho Steel—were deleted. (Editor: Chang Liang-chih) 1150618