The SinoPac Taiwan EV supply chain ETF was approved on the 6th of December amidst the threats of the new mutated variation Omicron and the turbulent overseas financial market, and managed to raise more than NT$4 billion of funds within a week, as well as generate interests for tens of thousands of investors, who are now a part of the prolonged development of the EV supply chain in Taiwan.
SinoPac SITC has released an EV ETF, which is also the first themed ETF based on commercial opportunities in the Taiwan supply chain. Pu Le-wei, general manager of SinoPac SITC, pointed out that aside from participating in industrial upgrades, and actively introducing the abundance of funds required for the development of national smart fleets, the SinoPac EV supply chain ETF also creates financial commodities that better conform to industrial and growth tendency in the future.
The SinoPac EV supply chain ETF targets investment opportunities in the Taiwanese EV supply chain, and has obtained the recognition of tens of thousands of investors, as well as NT$4 billion of funds. As suggested by SinoPac SITC, the Taiwan EV supply chain should be incorporated as a segment of investment under the catalysis of dividend from long-term EV development, rather than a continuous investment in overseas EV manufacturers like it was in the past.
The component stocks of the SinoPac EV supply chain are 100% locked onto critical supply chains of the necessary 4C industries for EVs, including chips at 52.07%, connectivity at 26.46%, charger at 11.05%, and center console at 10.41%.
SinoPac SITC pointed out that the SinoPac EV supply chain ETF tracks the TIP Customized Taiwan Smart Vehicles and Supplier Alliances Index, which has a comparatively better performance for 1 and 3 years compared to popular Taiwan stock indexes such as TAIEX and the FTSE TWSE Taiwan Dividend+ Index, where the increase of indexes would benefit auto IC, as well as high frequency and high speed transmission, that are more talked about and profitable, since smart EV has become a continuous development direction for various major auto manufacturers.
(Cover photo source: shutterstock)