Fubon Asset Management has launched an exchange-traded fund (ETF) on the Taiwan Stock Exchange that tracks the volatility of US equities.
By following the S&P 500 VIX Short-Term Futures Index Excess Return, the ETF allows Taiwanese investors to diversify their portfolios and potentially lower their risks.
The ETF, "provides investors with a new investment tool for short-term hedging, especially during times of high market volatility," said Jun-ji Shih, chairman of the exchange.
The launch brings the sum of ETFs listed on the exchange to 62, representing around $8.5 billion of assets and accounting for about 9% of total trading.
"We will continue to work together with issuers to bring more innovative and diversified investment products to the Taiwan market and enrich the investment options for investors," said Shih.
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