Recently, there has been growing discussion in the market suggesting that “in recent years, only those who bought TSMC truly made money.” Given that it accounts for more than 40% of the TAIEX weighting, its strong price performance amid repeated index highs has contributed to the widespread circulation of such claims.
However, is this really the case?
In 2025 (Year 114 of the ROC calendar), the TAIEX rose from 22,832.06 points at the beginning of the year to 28,963.60 points by year-end, an increase of 6,131.54 points or approximately 27%, with total market capitalization expanding by over NT$20 trillion. While this rally was indeed supported by large-cap stocks, a deeper examination of retail investor participation and the performance of different investment tools reveals that profit opportunities were not concentrated in a single focal point but were broadly distributed. Through odd-lot trading, dollar cost averaging investment plans, and ETF products, individual investors were generally able to participate in overall market growth and achieve corresponding investment results.
I. Odd-lot Trading: Lowering Barriers and Broadening Participation
1. Average Daily Turnover Reached NT$8.671 Billion, Up 41.5% Year-on-Year
In 2025, average daily turnover in odd-lot trading reached NT$8.671 billion, representing a year-on-year increase of 41.5%. Odd-lot trading accounted for approximately 2.08% of total centralized market turnover.
The number of individual investors participating in odd-lot trading reached 5.36 million accounts, an increase of approximately 620,000 accounts (nearly 13%) compared to the previous year. This demonstrates that the odd-lot trading mechanism continues to lower investment thresholds and broaden retail access to the equity market.
2. Strong Participation Among Younger Investors
By age distribution, investors under 30 years old accounted for 25.89% of odd-lot trading accounts—significantly higher than the 16.35% observed in mainboard trading. The largest participation group was aged 31–40 (23.0%), younger than the primary age cohort in overall market trading (41–50 years old).
These figures indicate that odd-lot trading facilitates earlier entry into capital markets for younger generations.
3. Strong Returns Among Top Traded Stocks
Among the top ten securities by odd-lot trading value (representing 53.8% of total annual odd-lot trading value), most recorded positive total returns on a dividend-adjusted basis. The highest return reached 144.6%, with several others exceeding 70%. While one security posted a slightly negative return, reflecting inherent market volatility, overall performance indicates that under a favorable market environment, companies across various industries were able to deliver solid returns.
Overall, odd-lot trading effectively reduces entry barriers, enabling investors to participate in the market through small, phased allocations and diversify across industries and growth companies. Supported by Taiwan’s overall market growth momentum, many investors were able to share in corporate earnings expansion.
II. Dollar Cost Averaging(DCA): Disciplined Participation and Risk Diversification
1. Total Contributions Increased 24.9% Year-on-Year
Total DCA contributions in 2025 reached NT$202.99 billion, representing a 24.9% year-on-year increase. Monthly DCA accounts reached 1.32 million in December 2025, compared to 1.02 million in December 2024—an increase of nearly 30%.
This growth reflects increasing retail participation, larger capital allocations, and a shift toward more stable and long-term investment behavior.
2. Dominated by Prime Working-Age Groups
Investors aged 21–50 accounted for more than half of total DCA participants. The 41–50 age group represented the largest share of total DCA contributions (26.53%), followed by those aged 31–40 (23.19%).
Although investors under 20 contributed only 4.67% of total DCA investment value, they accounted for 9.53% of total participants, indicating early adoption of disciplined, long-term investment practices.
3. Average Return Reached 18.7%
The average dividend-adjusted return of DCA investment targets in 2025 reached 18.7%. In an environment where the TAIEX reached successive record highs, phased investment through DCA reduced market-timing risk while facilitating steady return accumulation.
Among the top ten most-selected stocks under DCA (representing 67.6% of DCA accounts), most delivered double-digit dividend-adjusted returns, reflecting investor preference for operationally stable and large-scale enterprises.
Regarding ETFs, the top ten most-selected ETFs under DCA (representing 81.1% of ETF DCA accounts) all recorded positive annual dividend-adjusted returns. These ETFs covered market-cap weighted, technology-focused, 5G-related, and high-dividend strategies. Market-cap weighted ETFs generally outperformed high-dividend ETFs, and several closely tracked overall index performance.
Using December 2024 participation as a baseline, 96% of DCA accounts selected securities that generated positive dividend-adjusted returns in 2025. Overall, under an upward-trending market, disciplined and long-term investment through DCA enhanced the probability of achieving positive returns while mitigating volatility risk.
III. ETF Market Development: Expanding Scale and Broad-Based Participation
1. Sustained Growth in Beneficiary Accounts
In 2025, Taiwan’s ETF market continued to expand, with cumulative beneficiary accounts reaching 14.136 million, representing a 19.8% increase from 11.803 million at the end of 2024.
ETF participation is concentrated among investors aged 30–50, who account for nearly half of trading activity. DCA participation skews even younger, with investors aged 21–50 accounting for over 70% of participants.
This reflects a structural shift from short-term trading toward long-term, disciplined asset accumulation, supporting household financial resilience.
2. Record-High Asset Scale
Total listed ETF assets reached NT$4.63 trillion at the end of 2025, representing 35.8% annual growth. Taiwan equity ETFs accounted for NT$3.8 trillion, increasing 40.4% year-on-year.
Passive Taiwan equity ETFs expanded steadily, while active ETFs—launched in May 2025—surpassed NT$120 billion in assets within eight months, reflecting increasing investor acceptance of active management strategies.
This dual-track development of passive and active ETFs marks a new phase of maturity in Taiwan’s ETF market.
3. Strong Performance Across Taiwan Equity ETFs
The average dividend-adjusted return of passive Taiwan equity ETFs reached 19.9%, while active ETFs delivered 29.4%. The overall average for Taiwan equity ETFs was 21.0%.
Of 68 Taiwan equity ETFs, 65 recorded positive returns, resulting in a 95% positive-return ratio.
This demonstrates that market gains in 2025 were broadly distributed. Investors utilizing diversified ETF allocations were generally able to capture overall market growth rather than relying on exposure to a single large-cap stock.
High-dividend ETFs remained popular in terms of investor preference, while market-cap weighted and technology-oriented ETFs generally delivered stronger price returns. Each product category played a complementary role within diversified portfolio strategies.
Conclusion
In summary, Taiwan’s capital market in 2025 demonstrated robust price and volume growth, alongside increasing structural maturity and diversification.
Market expansion was not solely dependent on a single large-cap stock, nor were investment gains concentrated in one security. Multiple electronic and technology-related companies, as well as a wide range of ETF products, delivered strong performance. Market growth was driven by the broader industrial ecosystem and diversified investment vehicles.
Through fractional share trading, DCA, and ETFs, individual investors were able to participate in market growth according to their financial capacity and risk preferences. The steady increase in ETF beneficiary accounts and DCA contributions further reflects a structural shift toward long-term and disciplined investment behavior, enhancing overall market resilience.
Empirical data indicates that profit opportunities were not confined to any single stock. While representative enterprises remain important, the overall value of the market is supported by multiple industries and diverse investment tools. Market growth stems from an entire forest—not a single tree. When investment perspectives shift from seeking a “single answer” to embracing diversified choices, the full depth and long-term growth potential of Taiwan’s capital market can be more comprehensively realized.