TAIPEI: The number of shareholders in exchange-traded funds (ETFs) listed on the Taiwan Stock Exchange (TWSE) has surged by nearly 70 percent, reaching over 10 million in 2024, as reported by the Taiwan Depository and Clearing Corp. (TDCC) on Monday. This growth indicates a significant shift in investor preference towards ETFs, which have now outstripped shares in major local market players such as Taiwan Semiconductor Manufacturing Co. and China Steel Corp.

According to Focus Taiwan, leading ETFs have drawn more investors than some of the most heavily weighted stocks on the TWSE. As of December 27, the Cathay Taiwan Select ESG Sustainability High Yield ETF emerged as the most favored local ETF, attracting 1.55 million shareholders. The ETF's assets under management reached NT$380.29 billion by December 30, marking a 52.5 percent increase compared to the previous year.

TDCC attributed the robust performance of Taiwan's stock market primarily to domestic capital inflows, with ETFs playing a significant role. The agency also highlighted that foreign institutional investors have sold a net NT$670.2 billion worth of shares this year, underscoring the influence of local investment on the market's bullish trend.