TAIPEI (Taiwan News) – The Taiwan Futures Exchange (TAIFEX) has unveiled two new futures tracking the motherboard’s most active semiconductor, transportation and shipping stocks, available for trading on June 27.
The launch of Taiwan Semiconductor 30 Futures (SOF) and Shipping and Transportation Sector Futures (SHF) will allow investors who invest their money in the leading semiconductor, transportation and shipping companies by market cap to better hedge risk amid the wild ride since faced in 2021.
Taiwan is a leader in the global chip supply chain. The nation enjoys the highest market share in pure foundry and packaging and testing industries. It is also the second largest integrated circuit (IC) design market in the world.
According to TAIFEX, SOF tracks the performance of the top 30 semiconductor companies, ranked by market capitalization, listed on the Taiwan Stock Exchange and the Taipei Exchange. These companies include Taiwan Semiconductor Manufacturing Company (TSMC), MediaTek Inc., ASE Technology Holding Co, and United Microelectronics Corporation (UMC), among others. Together they accounted for 92.72% of the market cap and 99.51% of transactions per category at the end of 2021.
SOF can also be traded by investors overnight for timely risk management during US trading hours when the main constituents of the index are listed as American Depositary Receipts (ADRs).
As a major player in the global container shipping industry, Taiwan has benefited from increases in demand and rates as it is home to some of the world’s largest shipping giants by vessel capacity, including Evergreen, Yang Ming and Wan Hai.
SHF’s underlying index, the TAIEX Shipping and Transportation Sub-Index, includes companies such as EVA Air, China Airlines and Taiwan High Speed Rail and measures the overall performance of the country’s shipping and transportation stocks. The launch of SHF will allow investors to gain exposure to this key sector while managing any disruption.