The Taiwan Stock Exchange (TWSE) states President TIP Customized Taiwan IC Design Total Return Index ETN (President ICD TW TR ETN, code: 020031) issued by President Securities Corporation will be listed on March 31. This marks the 1st listed ETN this year.
According to the application, the underlying index of the President TIP Customized Taiwan IC Design Total Return Index ETN is “TIP Customized Taiwan IC Design Total Return Index”. The index is compiled by Taiwan Index Plus (TIP). TIP applies free-float adjusted market capitalization weighting scheme and selects top 20 profit-generating IC design stocks that are eligible after liquidity screening. The constructed portfolio represents the performance of high profitability TWSE and TPEx listed IC design stocks.
The TWSE reminds investors that ETNs are not principal-guaranteed. A securities firm will pay return at maturity based on the performance of the underlying index, thus investors may get back money less than which they paid at first due to market volatility risk and the issuer’s credit risk. To realize the characteristics of the ETNs, the investment fees and risks, investors are advised to carefully read the prospectus before trading. Signing a risk disclosure statement before the securities firm accept the order is required. To learn more about ETNs, please visit: http://www.twse.com.tw/zh/page/ETN/summary.html.