The Taiwan Stock Exchange (TWSE) states Yuanta Taiwan Green Energy Total Return ETN (Yuanta Green Energy ETN, code: 020032) issued by Yuanta Securities Corporation will be listed on April 25. This marks the 2nd listed ETN this year.
According to the application, the underlying index of the Yuanta Green Energy ETN is “TIP Customized Taiwan Green Energy Total Return Index”. The index is compiled and maintained by Taiwan Index Plus (TIP). First, the emerging energy company list from IEK report produced by Industry, information from Science and Technology International Strategy Center, MOPS, Industrial Value Chain Information Platform and CMoney Corporation are used to identify companies involving in green energy industry. Then, these stocks should meet certain liquidity criteria, and the top 20 market capitalization companies are selected. “TIP Customized Taiwan Green Energy Total Return Index” is compiled to measure the dividend reinvested performance on the related green energy industry chain.
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.