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High-dividend exchange-traded funds ( ETFs ) continued to gain massive popularity among Asian investors in 2024, driven by market volatility, shifting investment preferences, and supportive policy changes.
These trends were evident in key ETF markets, particularly Taiwan, South Korea, Singapore, Hong Kong and mainland China, resulting in the massive growth of such products and the ETF asset class in general.
In Taiwan, the rapid growth of the ETF market has taken both issuers and investors by surprise, with assets under management surging to NT$6.41 trillion ( US$200 billion ) by end-2024, up by 66% from NT$3.85 trillion a year earlier. This has expanded further to NT$6.6 trillion as of March 2025.
The surge in activity has also helped change the dynamics for market makers, who were previously hesitant to provide liquidity for products they couldn’t fully hedge. Today, with more stable trading volumes and improved risk-hedging mechanisms, securities firms are more willing to provide liquidity as market makers, contributing to greater market depth and efficiency.
The number of beneficiaries in Taiwan’s ETF market increased by an astonishing 70% over the past year, signalling growing financial awareness among individual investors. Local ETF providers believe this is forming a positive feedback loop, as more people are making money through ETFs, which in turn encourages even more participation.
Rising competition
Product diversification has been a key driver of this expansion. With 18 ETF providers managing about 300 ETFs in Taiwan, providers are increasingly focusing on product differentiation. While high-dividend ETFs remain the most popular by beneficiary count, interest in US bond ETFs is also picking up, reflecting broader diversification trends among local investors.
With competition intensifying among ETF providers, innovation has become a top priority. The good news is that regulators are actively supporting this drive, particularly around active ETFs. Six active ETF products are currently under regulatory review and are expected to be approved soon.
However, there is a trade-off. The Financial Supervisory Commission ( FSC ) requires high levels of transparency regarding investment portfolios, which helps protect market makers and allows them to hedge their exposures effectively. However, this same requirement can make it harder for ETF providers to offer truly unique strategies or pursue higher alpha opportunities.
Despite these challenges, many local and foreign asset managers see Taiwan’s ETF market as a major growth opportunity – especially when targeting overseas investments. Active ETFs focused on global markets are seen as a promising avenue for future launches. Whether they can replicate their overseas experience in active ETFs to the Taiwanese market remains to be seen.
A large number of Taiwanese investors still prefer conservative portfolio allocations with relatively predictable returns and, as such, consider insurance products as a key investment tool. Nonetheless, ETF providers consider this to be an untapped source of potential growth, especially given that high-dividend ETFs are delivering steady dividend payouts and generating good investment returns.
Against this backdrop, foreign asset managers, as well as local asset managers who have yet to launch ETFs, are accelerating their entry into Taiwan’s ETF space, exploring ways to capture market share. But the key challenge will be how quickly they can scale up and build brand recognition in a highly competitive environment. With execution costs falling and fee pressure mounting, providers must find innovative ways to differentiate themselves while maintaining cost efficiency.
Robust growth
Nonetheless, given the strong retail adoption, regulatory support, and ongoing product innovation, Taiwan’s ETF market appears poised for continued robust growth in the years ahead.
In South Korea, younger investors increasingly favour US-based dividend ETFs over domestic ETF products. In 2024, retail investors purchased nearly 1 trillion won ( US$7.5 million ) worth of US dividend-focused ETFs, more than four times the investment in local dividend ETFs. This trend reflects a perception of more reliable shareholder returns and sector diversification in the US markets.
In Singapore, high-dividend ETFs, particularly those focused on real estate investment trusts ( Reits ), experienced significant growth in both AUM and trading volumes. By August 2024, the combined AUM of Reit-tracking ETFs listed on the Singapore Exchange reached a record S$917 million ( US$702.4 million ). The average daily turnover rose to S$4.6 million, marking a 60% increase from the first half of 2024 and a 200% surge compared to 2023. This growth was driven by heightened investor interest in income-generating assets amid global market uncertainties.
In Hong Kong, while specific data for high-dividend ETFs are not yet available, there was a clear trend of substantial inflows into these products. Bocom Schroders Hong Kong Stock Dividend ETF attracted HK$2.1 billion ( US$270.76 million ) in net inflows as of July 2024, while the Morgan Stanley Capital Investment Fund’s Hong Kong Stock Dividend Index ETF saw net inflows exceeding HK$1.3 billion.
In China, reports indicate that about US$2.1 billion flowed into high-dividend yield ETFs in the first half of 2024, which resulted from government policies encouraging companies to increase dividends and buybacks.
It is in this context that we at The Asset announce the winners of the Best ETF Provider Awards 2025.
ASIA, JAPAN, SINGAPORE
Nikko Asset Management
Nikko Asset Management is one of the heavy hitters in the region. It continues to broaden its extensive presence across Asia with a notable focus on Singapore and its home market Japan. Overall ETF AUM surpassed US$100 billion. During the past year, the firm was relentless in undertaking cross-border partnerships, educational initiatives, and product leadership.
AUSTRALIA
Betashares
As an ETF providers, Betashares continues to demonstrate unrivalled strength in Australia. The company recorded US$47 billion in AUM, up 40% from 2023. Its extensive ETF product suite gained constant market exposure, including the world’s lowest-cost Australian shares ETF – the Betashares Australia 200 ETF. With a management fee of only 0.04% per annum, it received over US$1.9 billion in inflows to reach a total AUM of US$6.3 billion.
CHINA
China Asset Management
ChinaAMC continues to demonstrate its leadership in the onshore Chinese ETF market, with equity ETFs contributing a fifth of its total AUM. Among the 13 new ETFs in 2024, the broad-based ChinaAMC CSI A500 ETF hit a staggering US$2.56 billion in AUM only two months after launch while the cross-border ChinaAMC CSI HK Equities Central Enterprise Dividends ETF attracted US$244 million in AUM.
HONG KONG
CSOP Asset Management
CSOP Asset Management charges ahead with a robust ETF ecosystem that underpins the launch of a few top funds in the market. That includes the first Bitcoin future products in Hong Kong – the CSOP Bitcoin Futures Daily Inverse Product, which leverages the sagging Bitcoin future prices, which have fallen into a correction. The firm also took a bold step by rolling out the cross-border Albilad CSOP MSCI Hong Kong China Equity ETF, marking the first ETF in Saudi Arabia to track the Hong Kong equity market, in a bid to strengthen regional ties.
MALAYSIA
AmInvest
Displaying its prowess as the top ETF provider in Malaysia, AmInvest grabbed a market share of 87%, with its ETF AUM reaching 1.8 billion ringgit ( US$420 million ), up 3% from 2023. The ABF Malaysia Bond Index Fund – its flagship ETF and the only bond ETF in the market – gained traction among foreign investors who sought to capture opportunities around high yields in Malaysian government bonds.
TAIWAN
Capital Investment Trust – Winner
Strong existing products and two new sought-after funds doubled the total ETF AUM of Capital Investment Trust ( CIT ) to more than NT$1 trillion ( US$32 billion ). The Capital Tip Customized Taiwan Tech High Dividend and Growth ETF assesses the potential of tech stocks through the lens of foreign investment recognition to better discern high-quality investments. The Capital BB-B Coupon Enhanced High Yield Bond ETF is Taiwan’s first bond ETF, with a highly curated portfolio of bonds from developed countries.
CTBC – Highly Commended
Innovative ETFs from CTBC took off with their AUM increasing by 24% to NT$540 billion ( US$16.9 billion ). As the first of its kind in the market, the flagship CTBC Upstream Semiconductor ETF upsized on the first trading day and reached an AUM of NT$17.2 billion with more than 107,000 beneficiaries at year-end.
ASIA, AUSTRALIA, HONG KONG
Jane Street
In 2024, Jane Street cemented its position as the lead market maker by trading ETFs worth US$7 trillion globally and pricing over 10,000 ETFs. Its ability to handle difficult-to-price ETFs continues to be a key edge, gaining favour from more than 1,700 institutional clients, of which 400 trade US$1 billion annually. The firm took a bold step to deepen its presence in the Japanese market by expanding sales and trading coverage for Japanese clients.
TAIWAN
Fubon Securities
A long-standing market maker in Taiwan, Fubon Securities increased the participation rate of ETFs listed in Taiwan to 96% in 2024, while serving more than half with market-making services. The team reached a profit of NT$140 million ( US$4.4 million ), marking the fifth consecutive year of earnings exceeding NT$100 million.
ASIA
S&P Dow Jones Indices
S&P Dow Jones Indices created considerable standing by capturing interest from regional markets. The firm provided relevant strategies to track the S&P500 in Hong Kong, Korea and Australia, in addition to coming up with the first bitcoin future inverse product in Asia.
BEST INDEX PROVIDER FOR FIXED INCOME ETFs
CHINA
China Bond Pricing Center
China Bond Pricing Center ( CBPC ) doubled down on its commitment to the renminbi bond market by releasing indices almost daily to reach more than 1,600 indices at the end of 2024. The combined AUM of bond funds tracking CBPC-managed indices exceeded 7.67 trillion yuan ( US$1.05 trillion ), accounting for more than 87% of bond funds with the bond index as a performance benchmark.
Fuh Hwa Japan Global Moat Leaders ETF
CSOP Bitcoin Futures ( -1x ) Inverse Product ETF
CSOP MSCI HK China Connect Select ETF
ChinaAMC Bitcoin ETF
ChinaAMC Select USD Money Market Fund ETF
Yuanta Taiwan Value High Dividend ETF
Please click here for the full list of winners.
To learn more about these awards please go here.
