Taishin Taiwan IC Design ETF (00947) gained 122.31% in the year to October 22, the best result among Taiwan equity exchange-traded funds as chip stocks drove the market higher, Taiwan Times reported on October 22, citing CMoney data. The broader Taiwan stock market rose about 66.5% over the same period.
The figures show how heavily investor money has gathered in semiconductor funds, even though foreign investors have been net sellers of Taiwanese shares throughout October ahead of the US midterm elections. Among the 10 best-performing passive and active Taiwan equity ETFs, eight recorded growth in both returns and fund size. Six of those eight were semiconductor funds, one was a technology fund and one was actively managed.
Mega Taiwan Wafer Manufacturing ETF (00913) placed second with a 120.25% return. Nomura Taiwan New Tech 50 ETF (00935) came third at 108.55%. Other chip funds in the top 10 included CTBC Key Semiconductor (00891), Fubon Taiwan Semiconductor (00892), Taishin Taiwan Semiconductor (00904) and Capital Semiconductor Income (00927).
Uni-President Taiwan Growth Active ETF (00981A) was the only actively managed fund on the list, and its size jumped 1,231.56% over the year. Assets at 00927, 00947, 00891 and 00904 grew by roughly one to five times.
Institutional investors said a larger fund does not guarantee future returns. They told investors to watch sector concentration, price swings and valuation risk after the recent rally.
Huang Yu-min, who manages Taishin's 00904 and 00947 funds, said the decline in Taiwanese chip stocks on October 22 followed guidance from US equipment maker Lam Research that fell short of high market expectations. He warned that weak outlooks from major technology firms during the US earnings season could lead investors to cut holdings in tech supply chain stocks. He still sees growth in US technology earnings, which he said could support buying in the near term.
Huang said TSMC's October earnings call confirmed strong global chip demand. He also pointed to Taiwan's August export orders, which topped $100bn for the first time and rose more than 70% year on year.
For 2027, Huang expects Taiwanese chipmakers to keep their global edge through advanced process technology, a complete supply chain and long-standing customer relationships.