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Home > Product&Service > Listed Securities > ETF > Q&A
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| ETF Q&A |
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1. How are offshore ETFs listed on Taiwan Stock Exchange?
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Ans：
The offshore ETFs can be listed on TWSE by either of the following methods:
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Cross Listing
Also known as dual listing. The issuer of offshore ETF is required to appoint a master agent to file a listing application. Specifically, the master agent shall timely disclose information on MOPS and submit necessary documents to Taiwan Stock Exchange. Through cross-listing, Taiwan investors can directly trade offshore ETFs.
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Feeder ETF
A domestic asset management company issues a new ETF, called a feeder ETF, which conducts almost all of its investing through an offshore ETF. A feeder ETF allows Taiwan investors to indirectly invest into an offshore ETF. The feeder ETF shall be regarded as a type of domestic ETFs but containing foreign securities.
The ETFs listed on Taiwan Stock Exchange could be classified as follows:
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2. The comparison among Offshore ETF, Feeder ETF, and pure Domestic ETF.
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Ans：
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Offshore ETF |
Domestic ETF |
ETF comprising foreign securities
(Feeder ETF included) |
ETF comprising only domestic securities |
| Issuer |
Foreign issuer, and introduced by a master agent |
Domestic issuer |
Domestic issuer |
| Management fee |
Charged by foreign issuer |
Charged by both foreign issuer and domestic issuer |
Charged by domestic issuer |
| Trading unit |
Same as in primary exchange, e.g. 100 units or 200 units |
1,000 units |
1,000 units |
| Maximum price fluctuation |
No limit |
No limit |
7% |
| Quotation currency |
Taiwan dollar |
| Trading venue |
Any brokerage |
| Automated instructions on dollar-cost averaging |
N/A |
N/A |
Available in chartered institutions |
| Settlement period |
T+2 days |
| Transaction fee |
Negotiable, with the ceiling of 0.1425% |
| Transaction tax |
0.1%, levied on sell side only |
| Dividend income tax |
Exempted |
Exempted |
Payable |
| Capital gains tax |
N/A |
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