Taiwan Stock Market Volatility Amid Declining Volume! 6 Prototype ETFs Exceed 100,000 Shares Traded; 00406A Emerges as Dark Horse

The Philadelphia Semiconductor Index sharply declined last Friday, negatively impacting Taiwan's stock market performance today (27th). The market briefly plunged over 600 points intraday but gradually recovered, briefly turning positive, and ultimately closed down only 20.65 points at 43,634.19. Trading volume was relatively low at NT$718.645 billion. However, ETF trading volumes remained at high levels, with many investors choosing to strategically add positions. According to CMoney statistics, as of July 27, six prototype ETFs exceeded 100,000 shares traded: Active United Upgraded 50 (00403A-TW), Active United Taiwan Growth (00981A-TW), Active CTBC Taiwan Income (00406A-TW), Kaiji Taiwan TOP50 (009816-TW), Active Fubon Future 50 (00991A-TW), and Yuanta Taiwan 50 (0050-TW). Notably, 00406A, listed just one and a half months ago, has achieved trading volumes rivaling those of popular ETFs.

Institutions indicate that with U.S. tech companies' earnings reports approaching, the Federal Reserve's FOMC interest rate decision upcoming, and escalating U.S.-Iran tensions, market sentiment remains cautious. However, Taiwan's AI supply chain earnings remain strong, and overall fundamentals show no signs of deterioration. The recent correction mainly reflects short-term market sentiment, and investors are advised to seize pullback opportunities for strategic positioning.

The Taiwan Weighted Index has declined approximately 1.4% over the past week, but the top ten ETFs by trading volume on July 27 all demonstrated relative resilience, indicating that market capital has not significantly withdrawn. Instead, investors continue to strategically position themselves through ETFs during market dips. Investment experts note that the Active CTBC Taiwan Income ETF has attracted significant market attention since its June listing and will soon announce its first dividend distribution this month, with an estimated annualized dividend yield of around 16%. Such a high dividend payout is rare among active ETFs, making it a recent market focal point. Its trading volume surged to third place in the market, demonstrating that high-dividend active ETFs combining income and growth potential remain highly favored by investors, especially in a volatile market environment where stable cash flow is sought.

Zhang Shu-Ting, portfolio manager of the Active CTBC Taiwan Income ETF, observes that demand for AI servers, advanced processes, CoWoS advanced packaging, and high-performance computing (HPC) continues to grow, with no significant downward revisions in corporate earnings outlooks. With ample market liquidity and continued foreign investor focus on the AI supply chain, the medium- to long-term bullish trend for Taiwan stocks remains unchanged.

Zhang points out that as the earnings season unfolds and major tech firms release their latest outlooks, stronger-than-expected corporate earnings could boost investor confidence. Investors are advised to take advantage of market volatility and dips to strategically position in AI supply chain stocks and leading blue-chip companies with clear growth themes and high earnings visibility.

Institutions also note that major global cloud service providers such as Microsoft, Meta, and Amazon are about to release their latest earnings reports. Besides profitability, the market is closely watching AI investment progress, cash flow conditions, and future capital expenditure plans. Additionally, key indicator companies in Taiwan's electronics industry, including MediaTek, Delta Electronics, United Microelectronics, Simtek, and Yageo, will hold earnings conferences and release financial reports this week, providing updated views on AI demand and industry outlook. The information released will directly influence whether the market's high P/E valuations for Taiwan stocks are sustainable.

Top 10 ETFs by Trading Volume on 7/27 and Their One-Week Performance

| Code | ETF Name | 7/27 Closing Price | 7/27 Volume (Shares) | One-Week Change | |---|---|---|---|---| | 00403A | Active United Upgraded 50 | 9.62 | 209,575 | -1.3% | | 00981A | Active United Taiwan Growth | 27.53 | 159,263 | -0.7% | | 00406A | Active CTBC Taiwan Income | 9.13 | 123,913 | -0.4% | | 009816 | Kaiji Taiwan TOP50 | 14.68 | 105,039 | -0.5% | | 00991A | Active Fubon Future 50 | 16.48 | 101,149 | -1.4% | | 0050 | Yuanta Taiwan 50 | 101.45 | 100,752 | -1.0% | | 00405A | Active Fubon Taiwan Dragon | 7.93 | 56,601 | -0.9% | | 0056 | Yuanta High Dividend | 50 | 55,461 | 0.9% | | 00988A | Active United Global Innovation | 16.92 | 47,639 | -1.6% | | 00407A | Active Kaiji Taiwan | 8.92 | 43,510 | 0.1% |

Source: CMoney, data as of 2026/7/27.

*Disclaimer: The stocks, funds, and futures products mentioned in this article are for reference only and do not constitute investment advice. Investors should make independent judgments, carefully assess risks, and bear their own profits and losses.*