The Taiwan Stock Exchange (TWSE) states Yuanta Taiwan IC Design Representatives Total Return ETN (Yuanta IC Design ETN, code: 020034) issued by Yuanta Securities Corporation will be listed on June 1. This marks the 3rd listed ETN this year.
According to the application, the underlying index of the Yuanta IC Design ETN is “TIP Customized Taiwan IC Design Representatives Total Return Index”. The index is compiled and maintained by Taiwan Index Plus (TIP). First, the index selects stocks from the TWSE and TPEx listed IC design companies, which excludes the foreign issuers. Then, these stocks should meet certain liquidity criteria and are selected according to market capitalization. The index measures the dividend reinvested performance on the iconic IC design companies.
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.