TWSE and TSE dual-list ETFs

The Taiwan Stock Exchange (TWSE) and Tokyo Stock Exchange (TSE) for the first time launched cross-border exchange traded funds (ETFs) this week.

Nomura Asset Management Taiwan issued the Nomura TOPIX Feeder ETF on the TWSE, offering investors exposure to Japan’s equity market via the NEXT FUNDS TOPIX ETF, which is the largest ETF in Japan by assets under management. This fund is also included in Japan’s NISA tax-free investment program, making it one of the most widely held ETFs among Japanese retail investors.

Simultaneously, the NEXT FUNDS TIP FactSet Taiwan Innovative Technology 50 Index Exchange Traded Fund debuted on the TSE. The fund tracks the NEXT FUNDS – Nomura Taiwan Innovative Technology 50 ETF. Companies in the AI and semiconductor sectors account for 72% of the index’s total market capitalization. Taiwan’s benchmark index has more than doubled since 2020, reaching an all-time high this month, with foreign ownership approaching 46%.

TWSE Chairman and CEO Sherman Lin said: “This achievement reflects growing market confidence and Taiwan’s commitment to innovation and global integration.”

The listings were marked by a joint ceremony attended by senior officials from both exchanges and financial regulators.

“The cross-listings provide investors in both markets with seamless access to diversified portfolios,” said Nobuo Suzuki, senior corporate managing director of Nomura Asset Management. “Our goal is to deliver globally relevant financial products that promote deeper market connectivity and investor engagement.”

TSE President and CEO Moriyuki Iwanaga emphasised the strategic significance of the partnership: “This collaboration bridges our capital markets, positioning Taiwan and Japan as key partners within Asia’s financial ecosystem.”

TWSE President Edith Lee, who attended the ceremony in Tokyo, noted the potential of Japan’s NISA program to enhance retail investor participation and market liquidity. “Taiwan’s capital market has experienced dynamic growth, and this ETF showcases our technological strength to global investors,” she said.