00403A Frenetic fundraising of 80 billion—what should you pay attention to when it lists on 5/12?

With Taiwan’s stock market continuously setting new historical highs, the Taiwanese capital market has recently seen a surge in the issuance of “active ETFs.” Among them, the “00403A Uni-President Taiwan Stock Upgrade 50 Active ETF” launched by Uni-President Asset Management has already raised NT$80 billion in just a few days. It will be officially listed tomorrow (5/12). What should investors pay attention to?

(Taiwan stocks hit fresh highs and drive the active ETF craze—00403A starts subscriptions; how is it different from 00981A?)

00403A raises a frenzy of NT$80 billion; officially listed on 5/12

The “00403A Uni-President Taiwan Stock Upgrade 50 Active ETF,” launched by Uni-President Asset Management, is positioned by the market as an upgraded version of a market-cap ETF. Compared with “0050,” which is passive and fixed to track the top 50 largest companies by market cap in Taiwan stocks, 00403A adopts a dual “core and enhancement” strategy. Its core allocation is still mainly the top 50 largest companies by market cap, but the manager will actively remove individual stocks whose competitiveness is declining. At the same time, through enhancement allocations, the stock selection universe is extended to mid-to-large companies ranked 51 to 200 by market cap, seeking candidates with the potential to move into the front ranks. In addition, the single holding cap for 00403A can reach 30%, giving the manager room to overweight strong picks.

Backed by Uni-President Asset Management and the high popularity of its manager, Zhang Zhe-Wei, 00403A has raised NT$80 billion in just a few short days and will be officially listed tomorrow (5/12). At that time, investors will be able to place buy and sell orders directly via securities platforms.

Chen Zhongming issues a warning: on day one, expect a big premium; if you have holdings, sell first; stay sidelined if you’re in cash

Chen Zhongming, the “Invincible Teacher,” said that with a subscription amount as high as NT$80 billion for 00403A, it shows that everyone has high expectations for it. However, he reminded investors that in the first day after listing, with everyone scrambling to buy, they should be careful about issues related to large premiums. For example, the previous 009819 by China Trust had a premium of 24% on its first listing day—it was terrifying.

Chen Zhongming also reminded that if investors previously participated in the 00403A subscription, and they see a premium above 5%—or even up to 20%—on the first day after listing, remember: if you have shares, sell first. If an investor who is currently in cash sees a large premium, remember to watch from the sidelines first, and absolutely do not rush into the market.

There are two types of ETF prices: market price and net asset value. During Taiwan stock market trading hours, Uni-President Asset Management’s official website will provide the ETF’s real-time estimated net asset value. Before trading, investors should carefully assess whether the price is reasonable.

This article about what to pay attention to as 00403A raises a frenzy of NT$80 billion and is listed on 5/12 first appeared on Lian News ABMedia.